All-stock fusion of EIP Pharma and Diffusion Pharma agreed

Massachusetts, USA-based clinical-stage CNS biotech EIP Pharma has entered a definitive all-stock merger agreement with Diffusion Pharmaceuticals (Nasdaq: DVVN) forming a publicly traded company, sending the latter’s share up 5% pre-market.

The combined company will focus on the advancement of EIP Pharma’s pioneering pipeline of oral stress kinase inhibitors, including its lead drug candidate neflamapimod, which is currently being developed for the treatment of dementia with Lewy bodies (DLB).

Immediately after the merger, which is expected to close mid-2023, EIP Pharma will become the dominant partner with its shareholders owning around 77.25%, while Diffusion’s shareholders some 22.75%.