Dif­fu­sion to hand Nas­daq spot to EIP Phar­ma for PhI­Ib de­men­tia study of ex-Ver­tex drug

One of the more than a dozen bid­ders for Dif­fu­sion Phar­ma­ceu­ti­cals’ spot on Nas­daq has pre­vailed.

Boston biotech EIP Phar­ma will merge with Dif­fu­sion in an all-stock deal, with plans to start a Phase IIb clin­i­cal tri­al in the com­ing months in a com­mon form of de­men­tia with no ap­proved treat­ments. The com­bined com­pa­ny will be re­named Cer­voMed.

The nine-year-old pri­vate­ly-held EIP is work­ing on a for­mer Ver­tex drug that it will test in a 160-per­son Phase IIb in pa­tients with de­men­tia with Lewy bod­ies, or DLB. The Na­tion­al In­sti­tute on Ag­ing is ex­pect­ed to fund that tri­al with a $21 mil­lion grant. With the re­verse merg­er, slat­ed for clos­ing in the mid­dle of this year, EIP will be fund­ed through that read­out in the sec­ond half of 2024. EIP’s eq­ui­ty and debt hold­ers will own about 77.25% of the com­bined com­pa­ny.

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