Swiss clinical-stage biopharmaceutical company NLS Pharmaceutics Ltd is conducting an ongoing process to explore strategic alternatives, including the out-licensing of its intellectual property such as Mazindol, to maximize shareholder value.
This strategic move aims to diversify NLS revenue streams, mitigate risks, and create lasting value for stakeholders, according to a release from the company. As part of this process, the company plans to consider a range of options with a focus on maximizing shareholder value, including strategic partnerships, out-licensing assets of the company, and other future strategic actions.
Initial steps taken:
- NLS Pharmaceutics has selected a strategic partner and executed a non-binding term sheet for the out-licensing of its intellectual property, including its key asset Mazindol. The financial terms of the term sheet have not yet been finalized. The company intends to close this transaction in the first quarter of 2024.
- NLS has secured additional bridge financing in the amount of approximately $1 million to extend the company’s cash runway until the second quarter of 2024.
- In conjunction with the ongoing strategic process, NLS has implemented a workforce reduction of approximately 50%. This includes a pause on consulting agreements, a reduction in non-clinical staff, and a reduction in non-essential operating expenses.
“The company’s leadership is confident that these strategic initiatives will not only contribute to sustainable growth but also fortify our position as an emerging leader in innovative therapies for patients with rare and complex central nervous system disorders,” the company says in a release.