Highlights

  • Invex signs a binding agreement to acquire a New Zealand biotechnology company.
  • The proposed acquisition adds a Phase 2a nalfurafine study.
  • Invex plans placements totalling AUD 10mn before costs.
  • The company retains development plans for its existing Exenatide assets.

Invex Therapeutics (ASX:IXC), a biopharmaceutical company developing Exenatide for neurological conditions associated with raised intracranial pressure, has agreed to broaden its drug-repurposing portfolio. The proposed acquisition adds a nalfurafine program for demyelinating disease, alongside a planned AUD 10mn capital raising to support a clinical study and continued work on Invex's existing assets.

A Second Repurposing Program Joins the Plan

Invex has signed a binding share sale and purchase agreement to acquire 100% of a New Zealand biotechnology company developing nalfurafine for demyelinating diseases. The program includes chronic optic neuropathy in patients with multiple sclerosis.

Nalfurafine is already approved as an anti-itch drug for dialysis patients in Japan and Korea. The acquired business holds licensed patents covering its use in demyelinating disease, with issued patents in several jurisdictions and further applications pending. Approval for the existing indication does not establish efficacy for the proposed neurological use.

REVIVE Sets Out the Clinical Test

The planned REVIVE study is a Phase 2a randomised, double-blind, placebo-controlled trial in patients with relapsing-remitting multiple sclerosis and chronic optic neuropathy. Sites are planned in Australia and New Zealand.

Between 75 and 195 participants would receive nalfurafine at 10 micrograms, 5 micrograms or placebo once daily for twelve months. An interim analysis is planned approximately six months after the seventy-fifth patient receives a dose. The primary efficacy endpoint measures change from baseline in best-corrected low-contrast letter acuity at twelve months.

Consideration Links to Development Milestones

The transaction consideration comprises 45 million shares and 91.25 million performance rights across three classes, with no cash consideration. The rights relate to an interim trial assessment, achievement of primary endpoints and the US regulatory pathway.

Class A covers 22.8125 million rights, Class B 45.625 million and Class C 22.8125 million. Their expiry periods range from four to five years after issue. The terms also provide for vesting upon a qualifying transaction, with full details to appear in the meeting notice. Completion remains conditional, including on shareholder approval and an independent expert's report.

Placements Support Both Clinical Programs

Invex has firm commitments for a preliminary AUD 0.9mn placement at AUD 0.08 per share using existing placement capacity. That raising is not conditional on the acquisition. A further AUD 9.1mn placement at the same price requires shareholder approval and would complete alongside the transaction.

Together, the proposed raisings total AUD 10mn before costs. Funds will principally support REVIVE and continued Exenatide development. Invex intends to retain its existing business, including the proposed Phase 2a trial in adults in critical care with traumatic brain injury, subarachnoid haemorrhage and stroke. A general meeting is expected in late November or early December 2026.

The proposed twelve-month use of existing cash and raised funds includes AUD 6.7mn for the acquired business and AUD 2.975mn for the existing business. Estimated transaction cash costs account for another AUD 0.75mn in the proposed allocation.