NVG-291 modulates the downstream activity of inhibitory molecules in the central nervous system. The treatment could help repair certain brain functions in the case of a brain or spinal cord injury, multiple sclerosis, or Alzheimer’s disease.

The drug is currently undergoing a Phase I trial in healthy subjects and NervGen intends to begin a Phase Ib trial in Alzheimer’s disease patients once the first trial is completed. The company will also initiate Phase II of the trials in spinal cord injury and multiple sclerosis in 2022.

Dr. Daniel Mikol, NervGen chief medical officer, commented on the research agreement.

“This study is part of a series of studies we are undertaking to bolster the evidence we already have that NervGen’s NVG-291 will enhance repair of the central nervous system,” he said.

Dr. George Perry, the current and founding editor-in-chief of the Journal of Alzheimer’s Disease and chair of neurobiology at the University of Texas, also remarked on the research being conducted by Sylics and NervGen.

“I strongly believe,” he said, “that the pharmaceutical industry needs new and novel approaches that can harness more powerful mechanisms of action to create a greater likelihood of achieving convincing cognitive stability or improvements.”

He added, “NervGen’s drug candidate leverages a unique and powerful multimodal mechanism of action, […] representing an exciting new approach to Alzheimer’s disease.”

Sylics is a contract research organization that specializes in testing novel therapies in the field of neurosciences.

NervGen Pharma Corp. is a biotech company dedicated to creating innovative solutions for the treatment of nerve damage and neurodegenerative diseases.

NervGen Pharma Corp. (NGEN) is up 4.79 per cent, trading at $1.53 per share as of 10:05 am ET.