Israeli Pharma Firm NeuroRx Completes SPAC Merger at $1.5B Valuation

Israeli clinical-stage small molecule pharmaceutical company NeuroRx has announced the completion of a merger with Big Rock Partners Acquisition Corporation, a special purpose acquisition (SPAC) company. The company will trade on the NASDAQ as NRXP.

The deal is estimated to be worth a $1.5 billion valuation, the Haifa-based company said.

Founded in 2014, NeuroRx is a clinical-stage small molecule pharmaceutical company developing novel therapeutics for the treatment of central nervous system disorders and life-threatening pulmonary disease. The company’s two primary medicines are ZYESAMI (aviptadil), an application for COVID-19-related respiratory failure; and NRX-101, which focuses on suicidal bipolar depression and PTSD.

NeuroRx said it will use the funds from the offering to continue the development of its drugs ZYESAMI and NRX-101. ZYESAMI is the first FDA fast track-designated investigational medicine currently being studied in critically ill COVID-19 patients with respiratory failure. NRX-101 is the first investigational medicine to receive FDA Breakthrough Therapy Designation for patients with suicidal bipolar depression.

“Today marks a major milestone as we include public investors in our quest to bring innovative medicines to patients at immediate risk of death, who have no currently-approved medicinal therapies. We live by our credo of “Bringing Hope to Life,” said Professor Jonathan Javitt, MD, MPH, founder, CEO and Chairman of the Board, of NeuroRx. “We are indebted to the leaders and shareholders of BRPA who have chosen to support our mission.” 

NRx committed more than $120 million in operating capital from cash on hand, private investment in public equity (PIPE), warrants exercised by the global emerging markets (GEM) global yield fund and a share subscription facility provided by GEM.

“NRx has dedicated itself to patients whose lives depend upon new, innovative medicines and whose needs have not been addressed by major pharmaceutical companies,” said the Honorable Sherry Glied, PhD, former Assistant Secretary for Planning and Evaluation at the U.S. Department of Health and Human Services, and member of the NeuroRx Board of Directors. “The NRx leadership team draws upon more than 100 collective years of pharmaceutical development, science and business expertise to bring Breakthrough Therapies to the market.”