Cognos strikes SPAC merger to fund implantable drug delivery R&D

Cognos Therapeutics is coming to the Nasdaq. The implantable drug delivery specialist has agreed to merge with Nocturne Acquisition Corp. to secure a spot on the stock exchange and boost its bank balance. 

Los Angeles-based Cognos is the developer of the Sinnais implantable pump, a drug delivery system designed to get molecules to target tissues, including the central nervous system, to increase exposure without exposing healthy cells to high concentrations of the therapy. The delivery system can bypass the blood-brain barrier and, as such, brain cancer and other neurological diseases are a focus of Cognos. 

Having held talks with the FDA about a premarket approval filing for Sinnais in the delivery of morphine, Cognos has moved to secure a line on the capital it will need to execute its plans for the device by inking a merger with Nocturne, a special purpose acquisition company.

“Cognos will be able to have broad access to the capital markets. This will enable us to raise the capital to complete the next phases of our product development for the Sinnais implantable pump. This includes further product R&D and clinical testing as well as both our FDA and CMS regulatory review as we work to gain 510k and PMA approval,” Cognos CEO Frank Addell said in a statement. 

For the morphine filing, Cognos is considering using a rule that could allow it to use existing data. Beyond that, the company has plans to develop the device for the delivery of other drugs, including an intended initial indication of leptomeningeal carcinomatosis. 

The terms of the deal require Nocturne to have at least $5 million of net tangible assets after share redemptions. The SPAC had around $21 million in its trust account as the end of 2022 approached.