Why Did Invex Therapeutics Walk Away From Two Neurological Deals?
Invex Therapeutics has ended negotiations on two neurological asset acquisitions following due diligence setbacks and shareholder disputes, while advancing R&D collaborations and managing financial stability.
- Terminated acquisition talks with two neurological treatment companies
- Board instability triggered by shareholder requisition notices
- Ongoing R&D collaboration on Exenatide for Alzheimer's Disease
- Renewed orphan drug designation for Traumatic Brain Injury in Europe
- Quarter-end cash position of $5.0 million with controlled operating outflows
Strategic Setbacks in Asset Expansion
Invex Therapeutics, a biopharmaceutical company focused on repurposing Exenatide for neurological conditions, has reported the termination of two potential acquisitions aimed at diversifying its portfolio. The first target, a biotechnology company with multiple treatments for a single neurological disease, was dropped after due diligence revealed unsatisfactory findings and concerns over shareholder voting power concentration. The second target, a rare neurological disease developer specializing in Fragile X Syndrome, ceased negotiations following shareholder-instigated board removal notices that raised execution risks.
Governance Challenges Impacting Growth
Invex’s board is currently facing significant instability after receiving requisition notices from a substantial shareholder seeking to remove key directors, including Chairman David McAuliffe and Executive Director Thomas Duthy. This upheaval has directly influenced the discontinuation of the second acquisition deal, as the target company expressed concerns over potential shifts in company direction and control. An Extraordinary General Meeting is scheduled for November 2025 to address these governance issues, underscoring the uncertainty surrounding Invex’s leadership and strategic trajectory.
Progress in Research and Regulatory Milestones
Despite these setbacks, Invex continues to advance its core research and development efforts. The company is collaborating with Tessara Therapeutics on Exenatide’s potential in Alzheimer’s Disease, with promising experimental data showing improved neuronal survival. Results from ongoing analyses are expected in the current quarter, potentially unlocking new intellectual property. Additionally, Invex successfully renewed its orphan drug designation in Europe for Exenatide’s use in treating Traumatic Brain Injury, complementing existing designations for Idiopathic Intracranial Hypertension in both Europe and the United States.
Financial Position and Operational Efficiency
Financially, Invex closed the quarter with $5.0 million in cash and equivalents, a slight decrease from the previous quarter. Operating cash outflows were $0.35 million, reflecting due diligence and legal costs associated with the halted acquisitions, as well as ongoing R&D expenditures primarily linked to the Tessara collaboration. The company also deregistered its UK subsidiary to reduce overheads by approximately $100,000 annually and registered for the Australian R&D Tax Incentive, anticipating a payment of around $50,000 in the next quarter.
Looking Ahead Amid Uncertainty
Invex’s board remains committed to its strategy of identifying complementary neurological assets to enhance its portfolio. However, the current environment of shareholder disputes and board uncertainty presents challenges in attracting and executing new opportunities. The upcoming shareholder meetings will be critical in determining the company’s governance stability and future strategic direction.
Bottom Line?
Invex’s next moves hinge on resolving board disputes and reigniting its asset acquisition ambitions amid ongoing R&D progress.
Questions in the middle?
- Will the Extraordinary General Meeting resolve the board instability and restore investor confidence?
- What new neurological assets might Invex pursue following the failed acquisitions?
- How will the outcomes of the Alzheimer’s Disease collaboration influence Invex’s valuation and pipeline?
