Second Sight Medical Products (NSDQ:EYES) and Nano Precision Medical agreed to a merger deal that will focus on drug-device medical implants.
The two companies entered into a definitive agreement under which privately held Nano Precision Medical (NPM) will merge with a wholly-owned subsidiary of Second Sight in an all-stock transaction, with NPM the surviving company under Second Sight’s ownership.
According to a news release, the resulting company will develop drug-device medical implants for treating chronic diseases with high, unmet medical needs.
Nano Precision Medical develops NanoPortal drug implant technology that combines drug development, engineering and nanotechnology to deliver minimally fluctuating drug release profiles across a range of small molecules, peptides and monoclonal antibodies. The company’s current lead program, NPM-119, is a near clinical stage GLP-1 receptor agonist being developed to treat type 2 diabetes patients for up to six months with a single subdermal implant.
Along with advancing NPM’s implant portfolio, the newly formed company aims to create artificial forms of useful vision for the profoundly blind. Second Sight is currently developing the Orion visual cortical prosthesis system.
“The merger with NPM aligns with our expanded vision to become a top device and drug implant company, allows us immediate access to NPM’s experienced executive leadership team, and provides the two companies with a myriad of opportunities to leverage potential synergies,” Second Sight Chairman of the Board Gregg Williams said in the release.
Second Sight will provide NPM with $8 million for working capital and for the acceleration of pipeline programs. Both companies’ boards voted in support of the merger, with NPM’s Co-Founder, CEO and Chair Adam Mendelsohn set to lead the combined company once the transaction closes.
Under the merger agreement, Second Sight will issue approximately 134 million shares of its common stock to acquire full ownership of NPM, with Second Sight’s shareholders to acquire approximately 23% equity of the combined company. Second Sight and NPM expect the transaction to close in the second or third quarter of 2022.
“At NPM we are very excited about the proposed merger with Second Sight, which will enable NPM to accelerate development activities for its internal pipeline and also engage with Second Sight in the continued exploration of their visual prosthesis business opportunity,” Mendelsohn added.
