Dong-A ST announced on the 9th that Neurobo Pharmaceuticals of the U.S. has completed attracting $33.2 million worth of investment.
In September, Dong-A ST transferred to Neurobo the world's exclusive development rights for type 2 diabetes and non-alcoholic steatohepatitis treatment "DA-1241" and obesity and non-alcoholic steatohepatitis treatment "DA-1726" and exclusive sales rights around the world except Korea, and signed a global license-out and equity investment contract to invest $15 million in Neurobo to acquire additional shares.
According to the contract, Dong-A ST will acquire $ 22 million in down payment as Neurobo's convertible preferred stock and receive up to $ 316 million in development milestones.
Also, commercial milestones are received step by step according to the cumulative net sales volume after commercialization. However, Neurobo decided to raise a total of $30 million, including $15 million invested by Dong-A ST, to complete the contract.
Accordingly, Neurobo attracted investment from public offering funds in the United States from the 28th of last month to the 8th of this month. Despite the strained U.S. funding market, the company successfully completed a total of $32.3 million in funding, attracting $17.3 million, more than its procurement target of $15.3 million.
As the contract takes effect, Dong-A ST will become the largest shareholder of Neurobo at Neurobo's extraordinary shareholders' meeting next month based on its stake acquired by down payment and investment, and Neurobo will be incorporated as a Dong-A ST subsidiary.
Reporter Ahn Ho-hyeon vicahh@infostock.co.kr
