Painreform Ltd (NASDAQ:PRFX) shares declined 11% following the company’s announcement of a strategic investment deal with LayerBio Inc., a private biotech firm based in Boston.
Under the terms, Painreform will acquire a majority equity interest in LayerBio along with a controlling position on its board, in exchange for up to $3 million in funding tied to specific milestone achievements. An initial payment of $600,000 will be made at closing, with additional funds released in stages as development goals are met.
This move marks Painreform’s strategic entry into the ophthalmology sector, enhancing its portfolio with a novel drug delivery platform to complement its specialty pharma pipeline focused on non-opioid pain management. LayerBio’s lead candidate, OcuRing-K, is a sustained-release intraocular device designed to administer anti-inflammatory and pain-relief medication following cataract surgery.
“This agreement reflects our plans to broaden PainReform’s non-opiate pain management pipeline through innovative technologies in high-need surgical markets,” said Dr. Ehud Geller, Chairman and interim CEO of Painreform.
The investment will support a planned Phase II clinical trial of OcuRing-K, conducted under an FDA-approved protocol. LayerBio’s leadership, headed by CEO Dr. Ken Mandell, will remain responsible for product development and daily operations, with strategic guidance provided by Painreform.
The deal is expected to close by the end of July 2025, pending customary regulatory and closing conditions.
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