RADNOR, Pa. - NRx Pharmaceuticals Inc. (NASDAQ:NRXP), a clinical-stage biopharmaceutical company, has announced that its Board of Directors has authorized steps to distribute 49% of its subsidiary HOPE Therapeutics' stock, along with a 1% royalty on ketamine sales, to its shareholders and certain warrant holders.
The company's management is tasked with executing this dividend, with an effective date to be announced following the completion of necessary legal, accounting, and regulatory steps.
HOPE Therapeutics was recently established to focus on the advancement of HTX-100 (intravenous ketamine) toward a New Drug Application and subsequent commercialization. The company aims to begin ketamine sales through licensed pharmacies in the second quarter of 2024 and is also exploring digital therapeutics to enhance the pharmacological effects of ketamine. The intent is to establish HOPE as a revenue-generating specialty pharmaceutical entity this year.
Dr. Jonathan Javitt, Founder, Chairman, and Chief Scientist of NRx Pharmaceuticals and co-CEO of HOPE Therapeutics, stated, "This Dividend is another important step to building value for all of the Company's stakeholders." He added that the move is aimed at rewarding investors and supporting patients who may benefit from ketamine's potential therapeutic effects.
Shareholders of NRx Pharmaceuticals are currently engaged in a proxy voting process for a special meeting scheduled on March 21, 2024, with voting to be completed by the previous day. The company has provided resources to assist shareholders with the voting process.
NRx Pharmaceuticals is known for developing therapeutics for central nervous system disorders, including suicidal bipolar depression, chronic pain, and PTSD. The company's NRX-101 has received Breakthrough Therapy designation from the FDA for the treatment of treatment-resistant bipolar depression and chronic pain. It is also exploring ketamine's potential for treating acute suicidality.
The information in this article is based on a press release statement from NRx Pharmaceuticals.
InvestingPro Insights
As NRx Pharmaceuticals Inc. (NASDAQ:NRXP) prepares to reward its shareholders with a stake in its subsidiary HOPE Therapeutics, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, NRXP has a market capitalization of $41.76 million, reflecting its size within the biopharmaceutical sector. Despite a notable price uptick over the last six months, with a 76.88% return, the stock has experienced a significant drop of 31.97% in the past week alone.
InvestingPro Tips for NRXP highlight several critical factors: analysts have recently revised their earnings estimates upwards for the upcoming period, which could signal a positive outlook on the company's future financial performance. However, it's also noted that the company is quickly burning through cash, and its short-term obligations exceed its liquid assets. This could present liquidity challenges for NRXP, especially considering that analysts do not anticipate the company will be profitable this year.
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