Aethlon Medical Shares Surge Over 400% After Announcing North Immunology Merger

Aethlon Medical (NASDAQ:AEMD) shares surged more than 400% in pre-market trading on Thursday after the company announced a definitive merger agreement with privately held biotechnology company North Immunology.

The all-stock transaction will combine the businesses through Aethlon’s wholly owned subsidiaries, Nighthawk Merger Sub Corp. and Nighthawk Second Merger Sub, LLC.

Following completion, the combined company will operate as North Immunology, Inc. and is expected to trade on the Nasdaq Capital Market under the ticker symbol NRTX.

The merger will be accompanied by a private placement expected to generate approximately $180 million in gross proceeds.

Private Placement Attracts Healthcare Institutional Investors

The financing has received support from several healthcare-focused institutional investors, including Bain Capital Life Sciences, Janus Henderson Investors, Deep Track Capital, Longitude Capital, Soleus Capital, Invus and Sirenia Capital Management LP.

Other participants include funds managed by Farallon Capital Management, Adage Capital Partners LP and TCGX.

The anticipated $180 million in gross proceeds includes the conversion of approximately $34 million in outstanding convertible promissory notes issued by North Immunology, together with associated accrued interest, premiums and fees.

The financing is expected to provide sufficient funding for the combined company’s operations into the second half of 2028.

The transaction remains subject to completion, and the announced financing amount represents expected gross proceeds rather than net cash available to the business.

Funding to Support Development of NOR-101

North Immunology develops bispecific antibodies designed to target distinct inflammatory pathways involved in immune and inflammatory diseases.

The company’s lead programme, NOR-101, is a half-life-extended bispecific antibody targeting interleukin-13 (IL-13) and interleukin-18 (IL-18).

The investigational treatment is being developed for atopic dermatitis and other immune-mediated conditions.

Proceeds from the financing are expected to support the clinical development of NOR-101, including several planned studies over the next two years.

Clinical Development Programme Scheduled to Begin in 2027

North Immunology expects to initiate a Phase 1a clinical trial of NOR-101 in the first quarter of 2027.

Interim pharmacokinetic and safety data from the study are anticipated by the middle of 2027.

The company also plans to begin Phase 1b and Phase 2b studies evaluating NOR-101 in atopic dermatitis during 2027.

Topline results from both studies are expected in 2028.

The planned trials will provide further information on the investigational antibody’s safety, pharmacokinetics and clinical activity.

Aethlon’s substantial pre-market share price increase followed the announcement of the merger, associated financing and North Immunology’s proposed clinical development timetable.

Aethlon Medical stock price