Posted by Rafael Holdings and Cyclo Therapeutics on Thursday announced a merger agreement as they look to spur development of their Niemann-Pick disease type C1 (NPC1) treatment candidate, just weeks before the FDA is set to decide on a rival therapy (arimoclomol ) from Zevra Therapeutics – which, if approved, could become the first drug indicated specifically for NPC1 in the US.
The merger aims to accelerate development of Cyclo’s proprietary formulation of hydroxypropyl beta- cyclodextrin, known as Trappsol Cyclo, currently in Phase III testing in the TransportNPC study.
Under the deal, expected to close late this year, Rafael will issue Cyclo stockholders Class B shares, valuing Cyclo’s shares at $0.95 each. Rafael made its first investment in Cyclo in March 2023 to advance treatments for NPC1. The firm led another funding round last fall and continued to support Cyclo through convertible debt financings in 2024.