Australia-based Invion Ltd. will spin out two drugs for chronic airway disease and all shares in its unit Invion Inc. into a new company.
The new entity, called Chronic Airway Therapeutics Ltd., is a stand-alone, public and unlisted company, also based in Australia. It will develop the products, called INV102, or nadolol, and INV104, or zafirlukast, in China, with plans to advance into late-stage clinical trials in 2019.
Invion said the demerger will provide a separate structure for each entity to fund and advance their clinical development programs, maximizing shareholder value.
Eligible Invion stockholders can receive Chronic Airway Therapeutics shares on a 1-for-1 basis.
Additionally, drug developer Invion appointed Chief Medical Officer and Executive Director Mitchell Glass as executive director of Chronic Airway Therapeutics.
The Cho Group agreed to loan Chronic Airway Therapeutics at least $200,000 in funding. The Hong Kong-based investor, along with its associates, owns 68.16% of Invion.
The demerger, which is expected to close in late October, remains subject to shareholder and regulatory approvals.