Serina Therapeutics Announces Sale of UniverXome Subsidiary

Rhea-AI Summary

Serina Therapeutics (NYSE American: SER) has announced the sale of its UniverXome subsidiary, completed on December 23, 2024. The transaction eliminates $11.2 million in subsidiary-level debt, resulting in a debt-free balance sheet for Serina entering 2025.

The UniverXome subsidiary was established before Serina's reverse merger with AgeX Therapeutics in March 2024 to hold legacy assets. This strategic move aligns with Serina's focus on advancing SER-252, their lead candidate for advanced Parkinson's disease, into clinical development. The company aims to explore their POZ Platform™ technology across multiple therapeutic applications, including small molecules, lipid nanoparticles (LNPs), and antibody-drug conjugates (ADCs).

Positive

• Elimination of $11.2 million in debt
• Achievement of debt-free balance sheet
• Strategic focus on core asset SER-252 for Parkinson's disease

Negative

• Divestment of subsidiary assets

Insights

Financial Analyst

The sale of UniverXome marks a important financial restructuring, eliminating $11.2 million in debt from Serina's balance sheet. This strategic divestiture effectively transforms Serina into a debt-free entity, significantly improving its financial flexibility and operational leverage. For a small-cap biotech with a market cap of $47.8 million, this debt reduction represents approximately 23.4% of the company's total market value - a substantial deleveraging event.

The timing is particularly strategic, coming after the March 2024 reverse merger with AgeX Therapeutics. By shedding legacy assets and associated debt through the UniverXome subsidiary sale, Serina has essentially completed its corporate transformation. The debt-free status enhances the company's ability to raise future capital on more favorable terms, important for funding the clinical development of SER-252 and expanding its POZ Platform™ applications.

In simple terms: Imagine paying off a large mortgage - you now have more monthly cash flow and better credit for future loans. Similarly, Serina can now invest more in its drug development without the burden of debt payments, making it a more attractive investment target.

Biotech Research Analyst

The strategic refocus on SER-252 for advanced Parkinson's disease and the POZ Platform™ technology portfolio represents a clear pivot toward high-value therapeutic development. The platform's versatility across small molecules, lipid nanoparticles and antibody-drug conjugates positions Serina at the intersection of several rapidly growing drug delivery segments.

The POZ Platform's potential applications in these diverse modalities is particularly noteworthy. LNPs have gained significant attention following their success in mRNA vaccines, while ADCs represent one of the fastest-growing segments in oncology therapeutics. By maintaining these capabilities while divesting non-core assets, Serina has streamlined its value proposition while retaining key growth drivers.

Think of it like a race car shedding excess weight while keeping its powerful engine - the company has removed financial burden while maintaining its technological advantages. This focused approach typically leads to faster development timelines and more efficient use of resources.

- Transaction eliminates $11.2 million in debt, strengthening financial position -

HUNTSVILLE, AL, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Serina Therapeutics Inc. (“Serina”) (NYSE American: SER), a clinical-stage biotechnology company developing its proprietary POZ Platform^™ drug delivery technology, today announced the sale of its UniverXome subsidiary. The transaction was finalized on December 23, 2024 and eliminated $11.2 million in associated subsidiary-level debt, positioning Serina with a debt-free balance sheet heading into 2025.

The UniverXome subsidiary was established prior to Serina’s reverse merger with AgeX Therapeutics in March 2024 to own the legacy assets of the predecessor company.

Steve Ledger, CEO of Serina, commented, “This transaction underscores our commitment to maintaining a focused operational strategy centered on advancing SER-252, our lead candidate for advanced Parkinson’s disease, into clinical development. By achieving a debt-free balance sheet, we have strengthened our financial foundation, enabling us to accelerate our patient-driven mission. Additionally, this allows us to further explore the broad potential of our POZ Platform^™ to address unmet needs across multiple therapeutic modalities, including small molecules, lipid nanoparticles (LNPs), and antibody-drug conjugates (ADCs).”

About SER-252 POZ apomorphine

SER-252 is an investigational apomorphine therapy developed with Serina’s POZ platform and designed to provide continuous dopaminergic stimulation (CDS). CDS has been shown to reduce the severity of levodopa-related motor complications (dyskinesia) in Parkinson’s disease. Preclinical studies support the potential of SER-252 to provide CDS without skin reactions. Serina plans to advance SER-252 to clinical testing in 2025.

About the POZ Platform^™

Serina’s proprietary POZ technology is based on a synthetic, water soluble, low viscosity polymer called poly(2-oxazoline). Serina’s POZ technology is engineered to provide greater control in drug loading and more precision in the rate of release of attached drugs delivered via subcutaneous injection. The therapeutic agents in Serina’s product candidates are typically well-understood and marketed drugs that are effective but may be limited by pharmacokinetic profiles that can include toxicity, side effects and short half-life. Serina believes that by using POZ technology, drugs with narrow therapeutic windows can be designed to maintain more desirable and stable levels in the blood.

Serina’s POZ platform delivery technology has potential for use across a broad range of payloads and indications. Serina intends to advance additional applications of the POZ platform via out-licensing, co-development, or other partnership arrangements, including the non-exclusive license agreement with Pfizer, Inc. to use Serina’s POZ polymer technology for use in lipid nanoparticle drug (LNP) delivery formulations.

About Serina Therapeutics

Serina is a clinical-stage biotechnology company developing a pipeline of wholly owned drug product candidates to treat neurological diseases and other indications. Serina’s POZ Platform^™ provides the potential to improve the integrated efficacy and safety profile of multiple modalities including small molecules, RNA-based therapeutics and antibody-based drug conjugates (ADCs). Serina is headquartered in Huntsville, Alabama on the campus of the HudsonAlpha Institute of Biotechnology.

For more information, please visit https://serinatherapeutics.com.

Cautionary Statement Regarding Forward-Looking Statement

This release contains forward-looking statements within the meaning of federal securities laws. These statements are based on management’s current expectations, plans, beliefs or forecasts for the future, and are subject to uncertainty and changes in circumstances. Any express or implied statements in this press release that are not statements of historical fact, including statements about the potential of Serina’s POZ polymer technology, are forward-looking statements that involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from our clinical studies; whether and when any applications may be filed for any drug or vaccine candidates in any jurisdictions; whether and when regulatory authorities may approve any potential applications that may be filed for any drug or vaccine candidates in any jurisdictions, which will depend on a myriad of factors, including making a determination as to whether the product’s benefits outweigh its known risks and determination of the product’s efficacy and, if approved, whether any such drug or vaccine candidates will be commercially successful; decisions by regulatory authorities impacting labeling, manufacturing processes, safety and/or other matters that could affect the availability or commercial potential of any drug or vaccine candidates; and competitive developments. These risks as well as other risks are more fully discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023, the company’s Current Report on Form 8-K that was filed with the SEC on April 1, 2024, and the company’s other periodic reports and documents filed from time to time with the SEC.

The information contained in this release is as of the date hereof, and Serina assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.

For inquiries, please contact:
Stefan Riley
sriley@serinatherapeutics.com
(256) 327-9630

FAQ

How much debt did Serina Therapeutics (SER) eliminate through the UniverXome sale?

Serina Therapeutics eliminated $11.2 million in subsidiary-level debt through the sale of UniverXome subsidiary on December 23, 2024.

What is Serina Therapeutics' (SER) main drug candidate?

SER-252 is Serina Therapeutics' lead drug candidate, being developed for advanced Parkinson's disease.

When did Serina Therapeutics (SER) complete its reverse merger with AgeX Therapeutics?

Serina Therapeutics completed its reverse merger with AgeX Therapeutics in March 2024.

What therapeutic applications does Serina's (SER) POZ Platform target?

Serina's POZ Platform targets multiple therapeutic applications including small molecules, lipid nanoparticles (LNPs), and antibody-drug conjugates (ADCs).