San Diego-based Aethlon Medical, Inc. (Nasdaq: AEMD) has agreed to merge with North Immunology, Inc. in an all-stock transaction that will take the atopic dermatitis-focused biotech public and provide approximately USD 180 million in concurrent financing to advance its lead IL-13×IL-18 bispecific antibody, NOR-101, into clinical development. The combined company will operate as North Immunology, Inc. and is expected to trade on the Nasdaq Capital Market under the ticker NRTX.
The oversubscribed private placement includes approximately USD 146 million in new capital and the conversion of around USD 34 million of North Immunology convertible notes. Investors include Bain Capital Life Sciences, Janus Henderson Investors, Deep Track Capital, Longitude Capital, Soleus Capital, Invus, Farallon-managed funds, Adage Capital Partners, and TCGX. North said the financing is expected to fund operations into H2 2028.
The combined company is expected to have a pro forma equity value of approximately USD 346.5 million. The transaction is expected to close in Q1 2027, subject to shareholder, Nasdaq, and other customary approvals, with North's existing management team leading the combined company.
NOR-101 is a preclinical, half-life-extended bispecific antibody designed to inhibit both IL-13-driven type 2 inflammation and IL-18-linked non-type 2 inflammatory pathways implicated in atopic dermatitis. North reported an approximately 42-day half-life in non-human primates and is positioning the dual mechanism as a potential way to address residual disease not controlled by therapies directed solely at type 2 inflammation. The company plans to start a Phase Ia study in Q1 2027, with interim pharmacokinetic and safety data expected by mid-year. Phase Ib and Phase IIb studies in atopic dermatitis are also planned to begin during 2027, with topline data expected in 2028.