Alzheimer’s Drug Discovery Foundation Invests $5 Mn in Coya Therapeutics

Reportedly, ADDF has purchased 603,136 shares of the company’s common stock at a purchase price of $8.29 per share for an aggregate investment of $5 million.

In a recent development, New York’s Alzheimer’s Drug Discovery Foundation (ADDF) has invested $5 million in Coya Therapeutics, a Texas-based clinical-stage biotechnology company.

Reportedly, ADDF has purchased 603,136 shares of the company’s common stock at a purchase price of $8.29 per share for an aggregate investment of $5 million.

With this strategic move, ADDF aims to rapidly accelerate the development of drugs to prevent, treat, and cure Alzheimer’s disease (AD) and related dementias, including FTD.

On the deal, Howard Berman, CEO, Coya Therapeutics, said, “We are grateful that a world-renowned organization like the ADDF has chosen to support our corporate mission as well as the clinical development of COYA 302 through this equity investment.”

Insight Into the Strategic Deal

Coya Therapeutics’ lead therapeutic candidate, COYA 302, is currently under evaluation for multiple neurodegenerative diseases, including FTD.

The company intends to use the equity investment to fund the development of COYA 302 in a planned Phase II trial for FTD.

COYA 302 is an investigational and proprietary biologic combination therapy. It has a dual immunomodulatory mechanism of action, aiming to enhance the anti-inflammatory function of regulatory T cells (Tregs) while suppressing inflammation produced by activated monocytes and macrophages.

“Like Coya, the ADDF believes that combination therapies are the future of Alzheimer’s and related dementia treatments, including FTD, aligning our strategic approach to combatting such a complex disease that has no current treatment options. We look forward to working with the ADDF to potentially bring a new treatment paradigm to these patients,” added Berman.

Moreover, the securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D. These securities have not been registered under the Act or applicable state securities laws.

They may only be offered or sold in the United States under an effective registration statement or an applicable exemption.

Further, Coya Therapeutics has committed to filing a registration statement with the Securities and Exchange Commission (SEC) for the resale of securities issued to the Alzheimer’s Drug Discovery Foundation (ADDF) within 30 days of the definitive agreements.

The registration statement will be declared effective within 75 days if the SEC conducts a “full review”

In a similar development, global pharmaceutical player, Dr Reddy's Laboratories SA subsidiary inked a license agreement with Coya Therapeutics for the development and commercialization of COYA 302.

Per the terms, Coya granted Dr Reddy’s an exclusive license to commercialize COYA 302, a proprietary co-pack kit containing a combination of low-dose IL-2 and CTLA-4 Ig (abatacept) in the United States, Canada, the European Union, and the United Kingdom for ALS.

Further, Dr Reddy’s is expected to make a $7.5 million upfront payment to Coya for the purpose. This arrangement is in addition to the in-licencing agreement with Dr Reddy’s signed in early 2023.

Texas-based Coya Therapeutics is a clinical-stage biotechnology company. It aims to develop proprietary treatments leveraging the biology and therapeutic advantages of regulatory T cells (Tregs) to target systemic inflammation and neuroinflammation in various diseases.

Founded in 1998 by Leonard A and Ronald S Lauder, the Alzheimer's Drug Discovery Foundation is a nonprofit organization. It is dedicated to rapidly accelerating the discovery of drugs to prevent, treat, and cure Alzheimer's disease.