Invex Therapeutics (ASX: IXC) to Acquire Rekover and Raise $10 Million

Invex Therapeutics has agreed to acquire New Zealand biotechnology company Rekover Therapeutics in an all-scrip deal, adding a multiple sclerosis program to its neurological drug portfolio while undertaking a $10 million capital raising.

The acquisition consideration comprises 45 million Invex shares and 91.25 million performance rights, with no cash payment. The rights can convert into one share each if milestones involving the planned REVIVE clinical study and the US regulatory pathway for nalfurafine are achieved.

Invex will issue 125 million placement shares at 8 cents apiece to raise $10 million before costs. An initial $900,000 tranche will use the company’s existing placement capacity and is not conditional on the acquisition. The remaining $9.1 million requires shareholder approval and is scheduled to complete alongside the transaction.

A larger clinical portfolio — and capital base

Rekover is developing nalfurafine for demyelinating diseases, including chronic optic neuropathy in people with multiple sclerosis. The drug is already approved in Japan and Korea as an anti-itch treatment for dialysis patients.

Rekover has designed REVIVE as a Phase 2a randomised, double-blind and placebo-controlled study in patients with relapsing-remitting multiple sclerosis and chronic optic neuropathy. Between 75 and 195 participants are planned across Australian and New Zealand sites.

Participants will receive either 5 micrograms or 10 micrograms of nalfurafine, or a placebo, once daily for 12 months. An interim analysis is planned about six months after the 75th patient is dosed, while the primary efficacy endpoint will assess changes in low-contrast letter acuity after 12 months.

The performance rights link much of the acquisition consideration to progress. Of the total, 22.81 million rights are tied to an interim review allowing the study to continue, 45.63 million require primary endpoints to be met for at least one dose, and 22.81 million depend on a US investigational new drug application becoming effective.

The transaction and placements would increase Invex’s issued shares from 75.15 million to 245.15 million at completion. A further 91.25 million shares could be issued if all performance rights vest, while 19.5 million new options are also proposed for Tenmile and the placement’s lead manager.

Funding allocation and approvals

Invex plans to deploy $14 million, comprising existing cash and placement proceeds, over the 12 months following completion. It has allocated $6.7 million to Rekover, including REVIVE, and $2.98 million to its existing business, which is developing exenatide for neurological conditions involving raised intracranial pressure. Another $3.58 million is earmarked for working capital and corporate administration, with $750,000 for transaction costs.

The company said it is not committing to fund REVIVE beyond the stated allocation.

Tenmile has committed $4.5 million to the conditional placement. The voting power of Tenmile, Tattarang and their associates is expected to rise from 10.24% after the preliminary placement to 32.39% on completion, requiring shareholder approval.

Completion also depends on an independent expert’s report, due diligence and other approvals. Invex expects to hold its general meeting and complete the transaction in early December 2026, although it cautioned that completion is not certain.