Hope Therapeutics, Inc. and NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Announce Kadima Neuropsychiatry Institute as the Expected First Acquisition for its International Network of Interventional Psychiatry Clinics

Rhea-AI Summary

NRx Pharmaceuticals (NASDAQ:NRXP) announced its subsidiary HOPE Therapeutics plans to acquire Kadima Neuropsychiatry Institute in La Jolla, CA. The institute will serve as the flagship clinic for HOPE's planned international network of interventional psychiatry clinics treating depression, anxiety, and PTSD.

Kadima is a premier interventional psychiatry clinic offering treatments including Ketamine Therapy, Spravato®, and Transcranial Magnetic Stimulation. The institute has contracts with the US Department of Veterans Affairs and treats active-duty military personnel. The acquisition is expected to be immediately accretive to NRXP's revenue and EBITDA.

Dr. David Feifel, Kadima's founder and CEO, will join HOPE as Chief Medical Innovation Officer. Dr. Feifel, a Professor Emeritus of Psychiatry at UC San Diego with 150 peer-reviewed publications, will focus on evaluating new CNS disorder treatments and leading global clinical trials.

Positive

• Acquisition expected to be immediately accretive to revenue and EBITDA
• Existing contracts with US Department of Veterans Affairs and Department of Defense
• Leading research site for CNS and psychedelic clinical trials
• Addition of renowned expert Dr. Feifel as Chief Medical Innovation Officer

Negative

• Acquisition still subject to financial audits and closing conditions
• Integration risks of merging operations and cultures

Insights

Healthcare M&A Analyst

The planned acquisition of Kadima Neuropsychiatry Institute represents a strategic move for NRx Pharmaceuticals (NRXP) in the rapidly growing interventional psychiatry market. The deal is particularly notable as it's expected to be immediately accretive to revenue and EBITDA. Kadima's established contracts with the VA and Department of Defense provide stable revenue streams and access to large patient populations. The clinic's position as a leading investigative site for CNS and psychedelic research adds significant value through potential future drug development partnerships and clinical trial revenues. The acquisition will serve as a blueprint for HOPE's international expansion, potentially creating a scalable business model in the mental health treatment space. For a company with a market cap of $26.6M, this acquisition could significantly impact its financial profile and market position.

Clinical Research Expert

Kadima's research capabilities and track record as a premier investigative site for CNS and psychedelic treatments represent substantial value. Dr. Feifel's appointment as CMIO brings exceptional credentials with 150 peer-reviewed publications and pioneering work in ketamine therapy. The clinic's multi-modal treatment approach, combining ketamine therapy with TMS and digital therapeutics, positions it at the forefront of psychiatric treatment innovation. This integrated approach could lead to improved patient outcomes and potentially higher reimbursement rates. The research division's expertise in psychedelic trials is particularly valuable given the growing interest in psychedelic medicine for mental health treatment. For investors, this translates to potential additional revenue streams through clinical trial participation and early access to emerging therapies.

Market Strategy Analyst

With 60 million Americans affected by mental illness annually, this acquisition positions NRXP to capture a significant share of the expanding interventional psychiatry market. Kadima's comprehensive treatment offerings, including Spravato®, ketamine therapy and TMS, provide multiple revenue streams. The clinic's established presence in La Jolla, CA, a high-value market and its military/veteran connections through Tricare and VA contracts, offer strong foundations for growth. Using Kadima as a flagship model for international expansion could accelerate HOPE's scaling capabilities. The timing of this announcement ahead of the JP Morgan Healthcare Conference could generate additional investor interest and potential strategic partnerships.

• Kadima Neuropsychiatry Institute in La Jolla, CA to serve as flagship for an international network of clinics dedicated to treating depression and PTSD
• Kadima's founder, David Feifel, MD, PhD, Professor Emeritus of Psychiatry at University of California San Diego, a pioneer in advanced interventional treatments for neuropsychiatric conditions such as depression and PTSD, to join Hope as Chief Medical Innovation Officer
• Kadima is a leading investigative site for CNS and psychedelic research, and has served as the lead site in nearly all major clinical trials in this area
• Acquisition expected to be immediately accretive to revenue and EBITDA for NRx

MIAMI, Jan. 2, 2025 /PRNewswire/ -- HOPE Therapeutics, Inc., ("HOPE," the "Company"), a medical and technology driven company, and a wholly-owned subsidiary of NRx Pharmaceuticals, Inc. ("NRx") (Nasdaq: NRXP), today announced the planned acquisition of the Kadima Neuropsychiatry Institute (Kadima) of La Jolla, CA, per the previously announced Letter of Intent, for the HOPE network. Kadima is expected to serve as the flagship clinic for HOPE's planned international network of interventional psychiatry clinics, designed to provide advanced treatments for debilitating diseases such as depression, anxiety and PTSD.  

Kadima is one of the world's premier interventional psychiatry clinics and was among the first to introduce Ketamine Therapy for Central Nervous System (CNS) disorders at scale in the clinic setting. The clinic offers a full range of cutting-edge treatments for suicidal depression, anxiety, Post Traumatic Stress Disorder (PTSD) and other CNS disorders. Those treatment options include Ketamine Therapy, Spravato® (nasal esketamine), Transcranial Magnetic Stimulation as well as medication management.

Kadima also has a robust research division and is a leading investigative site for innovative CNS treatments, specializing in psychedelic research, for which it has served as a leading site in nearly all major clinical trials in this area. Kadima has contracts in place with the US Department of Veterans Affairs and also treats active-duty military personnel in the US Department of Defense under Tricare and other treatment programs.

Kadima's founder and CEO, Prof. David Feifel, MD PHD, has been a pioneer and international thought leader for advanced interventional treatment of psychiatric disorders such as depression, anxiety, PTSD and related disorders for more than three decades. Among other things, he is a co-author on a recent landmark expert consensus paper for treating depression with TMS, endorsed by three leading organizations in the field (ref). He also established the first clinical program to use subanesthetic dose ketamine infusions for neuropsychiatric disorders at UC San Diego, where he is currently Professor Emeritus of Psychiatry. His 150 peer-reviewed publications and several  patents have provided global thought leadership on advanced approaches to treating psychiatric conditions, including integration of medicines  like ketamine with neuromodulation such as, Transcranial Magnetic Stimulation and Digital Therapeutics. Kadima's experience will guide the growing network of HOPE Therapeutics clinics to an integrated, multi-modal approach to treating suicidal depression, anxiety and PTSD that is far more effective than ketamine alone.

Upon consummation of the proposed acquisition, Dr. Feifel will serve as HOPE's Chief Medical Innovation Officer (CMIO), focused on identifying and evaluating new developments in the treatment of CNS disorders and insuring Hope clinics are at the forefront of interventional psychiatry delivery, and leading global clinical trials to continue to advance the ability to treat these lethal diseases.

Dr. Feifel will join NRx's Chairman, Prof. Jonathan Javitt in presenting a Keynote address at the 8th Annual Neuroscience Innovation Forum during the JP Morgan Healthcare Conference in San Francisco, CA on the 12th of January 2025, and will join in meeting investors over the following week.

"I am thrilled to join the leadership of HOPE at this exciting juncture," said Dr. David Feifel. "In a world where nearly 60 million Americans suffer from a mental illness in any given year (ref), our dream has been to expand the successes and learnings of Kadima to an international stage, where we can continue to innovate and refine treatments that will create a world in which suicidal depression and PTSD are 100% treatable conditions, from which patients and their families should expect to return to empowered and productive lives."

"We are honored to welcome David and the Kadima team to the HOPE family.  David has helped pioneer the field of interventional psychiatry and is one of the few global thought leaders who has been able to span the worlds of academia and community health care delivery, serving the residents of his community as well as active-duty military and veterans in a town known for hosting some of America's most elite warriors. We are thrilled to count David as our partner for expanding the success of Kadima across the globe," said Jonathan Javitt, MD MPH and Matthew Duffy, Co-CEOs of HOPE Therapeutics.

The acquisition of Kadima is subject to the completion of financial audits, execution of definitive agreements, the satisfaction of standard closing conditions.

About HOPE Therapeutics, Inc.

HOPE Therapeutics, Inc. (www.hopetherapeutics.com) is a development stage healthcare delivery company that intends to develop a best-in-class network of interventional  psychiatry clinics to offer ketamine transcranial magnetics stimulation (TMS) and other lifesaving therapies to patients with suicidal depression and related disorders, together with a digital therapeutic-enabled platform designed to augment and preserve the clinical benefit of NMDA-targeted drug therapy.

About NRx Pharmaceuticals, Inc.

NRx Pharmaceuticals is a clinical-stage biopharmaceutical company developing therapeutics based on its NMDA platform for the treatment of central nervous system disorders, specifically suicidal bipolar depression, chronic pain, and PTSD. The Company is developing NRX-101, an FDA-designated investigational Breakthrough Therapy for suicidal treatment-resistant bipolar depression and chronic pain. NRx plans to file an NDA for Accelerated Approval for NRX-101 in patients with bipolar depression and suicidality or akathisia. NRX-101 additionally has potential to act as a non-opioid treatment for chronic pain, as well as a treatment for complicated UTI.

NRx has recently announced plans to submit a New Drug Application for NRX-100 (IV ketamine) for the treatment of suicidal depression, based on results of well-controlled clinical trials conducted under the auspices of the US National Institutes of Health and newly obtained data from French health authorities, licensed under a data sharing agreement. NRx was awarded Fast Track Designation for development of ketamine (NRX-100) by the US FDA as part of a protocol to treat patients with acute suicidality.

Notice Regarding Forward-Looking Statements

The information contained herein includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, among others, statements regarding closing the acquisition of Kadima and obtaining financing necessary to consummate the acquisition. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "plan," "believe," "intend," "look forward," and other similar expressions among others. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company's operations, results of operations, growth strategy, liquidity, Hope Therapeutic's ability to consummate the acquisitions of providers for its national network, the Company's ability to raise adequate capital to fund the Hope Therapeutics acquisitions, and the Company's ability to spin-off Hope Therapeutics. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. Except as may be required by applicable law, The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, whether as a result of new information, future events or otherwise.

For further information:
Matthew Duffy
Chief Business Officer, NRx Pharmaceuticals
Co-Chief Executive Officer, HOPE Therapeutics, Inc.
mduffy@nrxpharma.com

 

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SOURCE NRx Pharmaceuticals, Inc.

FAQ

What is the expected financial impact of Kadima acquisition on NRXP?

The acquisition is expected to be immediately accretive to NRXP's revenue and EBITDA upon completion.

What treatments does Kadima Neuropsychiatry Institute offer under NRXP?

Kadima offers Ketamine Therapy, Spravato® (nasal esketamine), Transcranial Magnetic Stimulation, and medication management for depression, anxiety, and PTSD.

What government contracts does NRXP's Kadima Institute have?

Kadima has contracts with the US Department of Veterans Affairs and treats active-duty military personnel under Tricare and other treatment programs.

What role will Dr. David Feifel have in NRXP after the Kadima acquisition?

Dr. Feifel will serve as HOPE's Chief Medical Innovation Officer, focusing on identifying new CNS disorder treatments and leading global clinical trials.

What are the remaining conditions for NRXP to complete the Kadima acquisition?

The acquisition requires completion of financial audits, execution of definitive agreements, and satisfaction of standard closing conditions.