CervoMed Inc. (formerly Diffusion Pharmaceuticals Inc.) (NASDAQ: CRVO), now a clinical-stage company focused on developing treatments for degenerative brain diseases, has successfully completed its previously announced merger with EIP Pharma Inc. The newly merged entity will operate under the name CervoMed Inc. The company's shares will begin trading on the Nasdaq Capital Market under the ticker symbol "CRVO" on August 17, 2023, with a 1-for-1.5 reverse split adjusted basis. CervoMed's primary focus will be on advancing its lead drug candidate, neflamapimod, an oral stress kinase inhibitor, for the treatment of dementia with Lewy bodies (DLB) and other degenerative brain diseases.

John Alam, MD, CEO of CervoMed, expressed excitement about the merger and its potential impact on advancing neflamapimod: "This merger with Diffusion, launch of CervoMed and entry into the public market is a transformative event that will accelerate the advancement of neflamapimod, first, and over the coming year, for the treatment of DLB, and later in Alzheimer's disease and stroke recovery." He highlighted the potential of neflamapimod to become a first-to-market disease-modifying drug therapy for DLB, with the capability to reverse and slow the progression of synaptic dysfunction associated with cognitive and motor function decline.

Alam further shared the progress of CervoMed's Phase 2b DLB study, named RewinD-LB, and its expected milestones: "Now that our Phase 2b DLB study, named RewinD-LB is underway, we anticipate completing enrollment during the first half of next year and reporting data from the placebo-controlled portion of the study during the second half of next year. We are well-funded through these catalysts and believe we are well-positioned to achieve our goal of creating new medicines for the brain."

Robert J. Cobuzzi, Jr., Ph.D., former CEO of Diffusion Pharmaceuticals and now COO of CervoMed, expressed satisfaction with the merger's completion and the potential value it offers to shareholders. He affirmed his commitment to the company's mission of bringing new treatments to patients facing degenerative brain diseases.

Neflamapimod, the company's lead investigational drug, is an orally administered small molecule brain penetrant that targets p38MAP kinase alpha (p38a). It focuses on inhibiting inflammation-induced synaptic toxicity, which contributes to synaptic dysfunction. Neflamapimod is being developed as a potential treatment for dementia with Lewy bodies (DLB), offering the potential to positively impact cognition, function, and motor function.