Aethlon Medical and North Immunology Merge to Advance Atopic Dermatitis Treatment

Aethlon Medical and North Immunology have announced a merger to advance the development of a novel bispecific antibody, NOR-101, for the treatment of atopic dermatitis. The combined entity will focus on advancing NOR-101, a half-life extended anti-IL-13 x IL-18 bispecific antibody, which targets both type 2 and non-type 2 inflammation.

North Immunology, a privately held biotechnology company, has been developing bispecific antibodies that target orthogonal inflammatory pathways in immune and inflammatory diseases. The company’s lead program, NOR-101, is designed to inhibit both type 2 and non-type 2 inflammation, with the potential to deliver a best-in-class treatment for atopic dermatitis. The merger and concurrent private placement are expected to provide approximately $180 million in gross proceeds, fully funding the combined company's operations into the second half of 2028.

Mohit Gupta, Co-Founder and Chief Scientific Officer of North Immunology, expressed optimism about the potential of NOR-101.

The Phase 1a study of NOR-101 is expected to begin in the first quarter of 2027, with interim pharmacokinetic and safety data expected by mid-2027. North Immunology plans to rapidly initiate Phase 1b and Phase 2b studies for NOR-101 in atopic dermatitis in 2027, with topline data expected in 2028.

Jonathan Barr, CEO of North Immunology, stated, "This merger and significant financing are expected to provide the capital and public-company platform needed to advance NOR-101 into clinical development. We are encouraged by NOR-101's preclinical profile, including the promising bioavailability and approximately 42-day half-life observed in our non-human primate pharmacokinetic study."

Upon the consummation of the transaction, the combined entity will operate as North Immunology, Inc. and trade on the Nasdaq Capital Market under the new ticker symbol NRTX. North Immunology's existing management team will lead the combined company, with the existing board of directors, chaired by Daniel Schneeberger, M.D., MBA, co-founder and managing partner of North Immunology and ADAR1 Capital Management, becoming directors of the combined company, alongside a number of new independent directors.

The transaction has received approval by the boards of directors of both companies and is expected to close in the first quarter of 2027, subject to certain closing conditions, including stockholder approval, the effectiveness of a registration statement to be filed with the U.S. Securities and Exchange Commission, and Nasdaq's approval of the initial listing application.

Aethlon Medical, Inc. (Nasdaq: AEMD) is a medical therapeutic company focused on developing the Hemopurifier, a clinical-stage immunotherapeutic device designed for the depletion of cancer-promoting exosomes and life-threatening viruses from the circulatory system, and for use in organ transplantation. The company is headquartered in San Diego, California.

The combined company plans to operate under the name North Immunology, Inc. and will be led by North Immunology's existing management team. The transaction is expected to provide the capital and public-company platform needed to advance NOR-101 into clinical development, with multiple data readouts expected through 2028.