LegalJun 25, 2026, 04:02 PM
NRx Pharmaceuticals Responds to Kadima Claims, Confirms Arbitration
AI Summary
NRx Pharmaceuticals issued a statement responding to public claims by Kadima Neuropsychiatry Institute concerning the non-acquisition of Kadima by NRx's subsidiary, HOPE Therapeutics. NRx stated it compelled arbitration with Kadima due to unmet closing conditions and believes the acquisition would not benefit shareholders or patients. The company emphasized that the non-acquisition is not material to HOPE's evolving business model, which now focuses on neuronavigated TMS and neuroplastic drugs. NRx expects a lawsuit by Dr. Feifel to be directed back to arbitration, anticipating a non-material resolution.
Key Highlights
- NRx Pharmaceuticals responded to public claims by Kadima Neuropsychiatry Institute regarding a non-acquisition by its subsidiary, HOPE Therapeutics.
- NRx compelled arbitration with Kadima due to Kadima's failure to meet key closing conditions, including clear title to assets and a material adverse change.
- Management believes the acquisition of Kadima would not be in the best interests of patients or shareholders.
- The acquisition or non-acquisition of Kadima is not considered material to HOPE's overall business model.
- HOPE's scientific direction has evolved towards neuronavigated Transcranial Magnetic Stimulation (TMS) and neuroplastic drugs, differing from Dr. Feifel's approach.
- NRx highlighted new initiatives, including a partnership with Zeta Surgical and FDA clearance of an IND for the SPARC-TMS trial.
- NRx expects Dr. Feifel's attempt to compel specific performance through litigation will be directed back to arbitration.
- The company is confident the matter will be resolved equitably and non-materially to NRx and its shareholders.
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