WILMINGTON, Del. - NRx Pharmaceuticals, Inc. (NASDAQ:NRXP), a clinical-stage biopharmaceutical company, announced today the appointment of Michael Abrams as its new Chief Financial Officer. Abrams, who brings nearly 30 years of financial and biotech experience, succeeds Interim-CFO Richard Narido. Narido will continue to support the financial operations and focus on the growth of HOPE Therapeutics.
Chairman, CEO, and Chief Scientist of NRx Pharmaceuticals, Dr. Jonathan Javitt, expressed confidence in Abrams' ability to contribute to the company's progression toward profitability. Abrams' background includes roles as CFO at various companies, including Arch Therapeutics (OTC:ARTH), RiseIT Solutions, and FitLife Brands. His expertise spans financial operations, mergers and acquisitions, and capital raising, among other areas. Abrams holds an MBA from the University of Chicago Booth School of Business and a BBA from the University of Massachusetts at Amherst.
NRx Pharmaceuticals specializes in developing treatments for central nervous system disorders, such as suicidal bipolar depression, chronic pain, and PTSD. The company is advancing its NMDA platform with NRX-101, which has received Breakthrough Therapy designation from the FDA for treatment-resistant bipolar depression and chronic pain. Plans are also underway to submit a New Drug Application for NRX-100 for suicidal depression treatment.
HOPE Therapeutics, a subsidiary of NRx Pharmaceuticals, is developing a network of precision psychiatry clinics to deliver treatments for suicidal depression and related disorders. The company's strategy includes a digital therapeutic-enabled platform to augment the clinical benefits of its drug therapies.
The information provided in this announcement is based on a press release statement from NRx Pharmaceuticals. It includes forward-looking statements that involve known and unknown risks and uncertainties. These may affect the company's actual results and performance materially. The company has filed its most recent Annual Report on Form 10-K and other documents with the Securities and Exchange Commission, which are available for public review.
In other recent news, NRx Pharmaceuticals has postponed its Q3 results call to allow for additional corporate updates. The company has also secured an additional $5 million in funding, which will be used to repay existing convertible notes and bolster working capital. The company's CEO, Stephen Willard, has resigned, with Jonathan Javitt, Chairman of the Board, stepping in as Interim CEO.
NRx Pharmaceuticals has achieved a stability milestone for its preservative-free ketamine formulation, NRX-100. This development paves the way for the submission of a New Drug Application to the U.S. Food and Drug Administration. The company's subsidiary, HOPE Therapeutics, plans to acquire a group of Interventional Psychiatry Clinics in Florida, which is expected to contribute to the company's revenue and earnings before interest, taxes, depreciation, and amortization.
EF Hutton has initiated coverage on NRx Pharmaceuticals with a Buy rating. The company has cleared its toxic debt and reduced net losses and research and development expenses, thanks to securing a crucial investor and $16 million in senior secured debt financing. These recent developments underscore the strategic efforts of NRx Pharmaceuticals and HOPE Therapeutics towards innovation and financial stability.
InvestingPro Insights
As NRx Pharmaceuticals (NASDAQ:NRXP) appoints Michael Abrams as its new CFO to steer the company towards profitability, recent financial data from InvestingPro paints a challenging picture. The company's market capitalization stands at a modest $14.05 million, reflecting investor caution.
InvestingPro Tips highlight significant financial hurdles for NRXP. The company is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors are particularly relevant given the company's focus on advancing its NMDA platform and preparing for a New Drug Application, both of which require substantial financial resources.
Moreover, NRXP's stock performance has been concerning, with InvestingPro data showing a 66.38% price decline over the past six months. This aligns with the InvestingPro Tip indicating that the "stock has taken a big hit over the last six months."
Despite these challenges, analysts have set a fair value target of $31 per share, significantly above the current trading price. This suggests potential upside if the company can overcome its financial hurdles and successfully bring its treatments to market.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for NRXP, providing deeper insights into the company's financial health and market position.
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