NeOnc Technologies, a California-based biotech company focused on developing treatments for central nervous system (CNS) diseases, has successfully listed on the Nasdaq exchange. The company, which specializes in novel drug delivery systems that cross the blood-brain barrier, simultaneously announced a strategic partnership with CBCC Global Research to expand its clinical trials across 30 FDA-compliant sites in India.
The Westlake Village-based company completed its direct listing on March 26, when executives rang the opening bell at Nasdaq. This achievement makes NeOnc the first USC-licensed biotech company with agreements through USC Stevens Center for Innovation to go public.
Innovative Approach to Brain Cancer Treatment
NeOnc's technology platform centers on an intranasal delivery system that allows therapeutic compounds to bypass the notoriously difficult blood-brain barrier. The company's lead candidate, NEO100, is an ultra-purified form of perillyl alcohol (POH) administered through the nasal passage.
"Our approach allows us to bypass the blood-brain barrier and target the tumor directly," explained Dr. Thomas Chen, NeOnc's founder, chief executive, and chief scientific officer. "The molecule we're delivering is inhaled through the nose, crosses the nasal passage, interacts with the olfactory nerve and then enters the cerebrospinal fluid and circulates throughout the brain. This is different from traditional chemotherapy which is usually given orally and intravenously."
This innovative delivery method addresses one of the most significant challenges in treating brain cancers and other CNS disorders—getting therapeutic agents past the protective blood-brain barrier at sufficient concentrations to be effective.
Clinical Pipeline and Development Status
The company is advancing multiple candidates through clinical development:
- NEO100: Currently in Phase 2a trials for recurrent malignant glioma and malignant skull-based meningioma
- NEO212: A novel conjugate combining temozolomide with POH, currently in Phase 1/2 trials for brain metastases
- Additional applications: Exploring POH to facilitate delivery of levodopa for Parkinson's disease
Glioblastoma, the most aggressive form of malignant glioma targeted by NeOnc's therapies, affects up to 15,000 Americans annually and has a median survival of only 15 months. The disease's infiltrative nature makes complete surgical removal nearly impossible, highlighting the urgent need for more effective treatments.
Strategic Expansion into India
The partnership with CBCC Global Research represents a significant expansion of NeOnc's clinical development program. The addition of 30 FDA-compliant clinical research sites in India will substantially increase patient enrollment capabilities and potentially accelerate the development timeline.
"Conducting our trials in India allows us to improve patient recruitment, maintain regulatory compliance, and expedite the potential approval of these promising therapies for patients in need," said Amir Heshmatpour, co-founder and executive chairman of NeOnc.
Financial Position and Market Entry
Unlike a traditional IPO, NeOnc opted for a direct listing, with 2.1 million shares of common stock being sold by existing shareholders. The company disclosed that it has agreements with investors to raise $10 million through a private placement of 625,000 shares at $16 per share.
Prior to this listing, NeOnc raised $18.5 million in private financing last June, which valued the company at approximately $220 million. Since its formation in 2008, the company has raised a total of $31 million.
USC maintains an equity interest of less than 5% in NeOnc, underscoring the university's role in fostering biomedical innovation.
Future Applications Beyond Brain Cancer
While NeOnc's initial focus is on brain cancers, Dr. Chen envisions broader applications for the company's intranasal delivery technology.
"Once we demonstrate this for brain cancer, the same approach could be used for any brain disease where there's a potential therapeutic effect," Chen noted. Potential future applications include pediatric brain tumors, metastatic brain cancer, and even neurodegenerative conditions like Alzheimer's disease.
The company's public listing and clinical expansion represent significant steps toward bringing these innovative CNS therapies to patients with limited treatment options.
