Swiss clinical-stage biopharmaceutical company NLS Pharmaceutics Ltd (Nasdaq: NLSP) and Kadimastem Ltd (TASE: KDST), an Israeli clinical-stage cell therapy company, said on Monday that their planned merger aims to create a leading biotechnology entity.

Together, NLS Pharmaceutics and Kadimastem aim to transform the treatment landscape for complex conditions such as diabetes. By uniting the core competencies of both organisations, NLS and Kadimastem believe that the merger is positioned to potentially create a holistic solution that addresses the multifaceted challenges of diabetes management.

NLS is pioneering DOXA (Dual Orexin and Multi-Pathway Modulation), a next-generation therapeutic approach integrating orexin receptor agonism, neuroprotective pathways, and metabolic regulation to holistically manage diabetes and its systemic complications. DOXA uses multi-target mechanisms to synchronise metabolic and neurological pathways by acting on Orexin Signalling (OX1R/OX2R), Sigma-1 Receptor (Sig-1R) Modulation, Cathepsin Inhibition (CTSS/CTSL), Sodium-Glucose Cotransporter-2 (SGLT2) Modulation and Adiponectin Receptor Activation.

Preclinical studies to be presented at the 2025 ASCP Annual Meeting demonstrate that DOXA compounds: restore orexinergic function, improving metabolic balance and sleep-wake disturbances; decrease inflammatory markers and neurodegeneration, preventing diabetes-induced neuronal damage; and improve beta-cell survival and glucose metabolism, positioning DOXA as a disease-modifying therapy rather than a glucose-dependent intervention.

The two companies intend to bring together two complementary platform technologies -- Kadimastem's expertise in cell therapy and NLS's leadership in pharmaceutical innovation -- through their anticipated merger.