HOPE Therapeutics, a subsidiary of Wilmington, Del.-headquartered NRx Pharmaceuticals (Nasdaq: NRXP), has secured a $30 million deal to fund its planned acquisition of a network of psychiatric clinics focused on ketamine treatments.
In a release, the Miami Beach, Fla., company said it had signed non-binding term sheets backed by a qualified lender to buy five clinics, located in the Western part of the country. The clinics are operational and generate over $10 million in annual revenue. The non-dilutive, non-convertible debt funding is expected to close in 60 days.
HOPE, launched late last year, runs a network of clinics that offer ketamine and other lifesaving therapies, along with a digital therapeutic-enabled platform designed to augment the benefit of a therapy that targets N-methyl-D-aspartate, or NMDA, receptor, the human brain’s primary excitatory neurotransmitter.
NRx Pharmaceuticals, HOPE’s parent company, is a clinical-stage biopharmaceutical company developing therapeutics based on its NMDA platform for the treatment of suicidal bipolar depression, chronic pain and PTSD. Based on recent clinical trials, it plans to submit a new drug application for NRX-100 (IV ketamine) for the treatment of suicidal depression.
HOPE’s proposed acquisitions are part of an ambitious plan to assemble or acquire a network of operational clinics yielding revenues in excess of $100 million annually by mid-2025. The company expects to operate such clinics not only in the United States, but also in France and the United Kingdom.
“HOPE is dedicated to providing an accessible platform to help caregivers address the critical needs of those suffering from suicidal thoughts, TRD [treatment-resistant depression], PTSD [post-traumatic stress disorder] and related challenges,” the company’s co-CEOs Jonathan Javitt and Matthew Duffy said in a release. “We are delighted to take the critical first steps towards developing a network of clinics that can provide the highest possible level of care and demonstrate best-practices for mental health professionals around the world.”
NRx is led by CEO Stephen Willard, who early in his career practiced law in the United Kingdom and the United States, before turning to pharmaceuticals as well as finance. He has since served as CEO of Cellphire Therapeutics, where he guided its revolutionary human platelet platform through key clinical trials. Prior to Cellphire, he served as CEO of publicly traded Flamel Technologies, now known as Avadel Pharmaceuticals.
Willard is a presidential appointee to the National Science Board, with his six-year term due to end this year.