North Immunology, Aethlon Merge to Advance NOR-101 for AD

Aethlon Medical has entered into a definitive merger agreement with North Immunology, alongside an oversubscribed $180 million private placement, to advance NOR-101, a half-life-extended anti-IL-13 x IL-18 bispecific antibody for atopic dermatitis (AD).¹ The all-stock transaction is expected to close in the first quarter of 2027, at which point the combined company will operate as North Immunology, Inc. and trade on the Nasdaq Capital Market under the ticker NRTX. The financing is expected to fund operations into the second half of 2028, covering a planned phase 1a study of NOR-101 set to begin in the first quarter of 2027.¹

Monoclonal antibodies targeting type 2 inflammation have transformed AD management, yet most patients continue to experience substantial residual disease burden, according to North Immunology.² NOR-101 is designed to inhibit both type 2 and non-type 2 inflammatory pathways simultaneously, a dual-targeting approach distinct from currently marketed type 2-selective biologics.¹ North Immunology was founded and incubated by ADAR1 Capital Management, with Daniel Schneeberger, MD, MBA, chairing the board of the combined company.¹

Under the agreement terms, pre-merger Aethlon stockholders are expected to own approximately 4.75% of the combined company, while pre-merger North Immunology stockholders, including investors participating in the private placement, are expected to own approximately 95.25%.¹ The pro forma equity value of the combined company is expected to reach approximately $346.5 million, inclusive of the private placement. The $180 million private placement includes conversion of approximately $34 million in North Immunology's outstanding convertible promissory notes plus accrued interest, premiums, and fees.¹

A syndicate of healthcare-focused institutional investors supported the oversubscribed financing, including Bain Capital Life Sciences, Janus Henderson Investors, Deep Track Capital, Longitude Capital, Soleus Capital, Invus, Sirenia Capital Management LP, funds managed by Farallon Capital Management, Adage Capital Partners LP, and TCGX. Aethlon stockholders will also receive a contingent value right tied to any future monetization of the company's legacy Hemopurifier device business. The transaction requires stockholder approval from both companies, effectiveness of an SEC registration statement, and Nasdaq approval of the initial listing application, with closing anticipated in the first quarter of 2027.¹

NOR-101 Mechanism and Clinical Development Timeline

NOR-101 is designed as a half-life-extended bispecific antibody targeting both IL-13 and IL-18, aiming to inhibit type 2 and non-type 2 inflammatory drivers of AD within a single molecule.¹ In a non-human primate pharmacokinetic study, the candidate showed an approximately 42-day half-life along with favorable bioavailability, according to Jonathan Barr, CEO of North Immunology.¹ No clinical safety or efficacy data have been generated for NOR-101 to date, as the program remains in the preclinical stage.

North Immunology plans to initiate a phase 1a study of NOR-101 in the first quarter of 2027, with interim pharmacokinetic and safety data expected by mid-2027.¹ Phase 1b and phase 2b studies in AD are planned to follow in 2027, with topline data from both studies expected in 2028.¹ The company has not disclosed planned enrollment size, dosing regimens, or specific end points for the phase 1a study.

Mohit Gupta, co-founder and chief scientific officer of North Immunology, said, "By simultaneously targeting type 2 and non-type 2 inflammatory pathways that drive AD, we believe NOR-101 has the potential to deliver a best-in-disease therapeutic profile."¹

Jonathan Barr, CEO of North Immunology, said, "We are encouraged by NOR-101's preclinical profile, including the promising bioavailability and approximately 42-day half-life observed in our non-human primate PK study."¹

For dermatology clinicians, NOR-101 represents an early-stage entrant into a growing pipeline of therapies targeting inflammatory pathways beyond IL-4/IL-13 alone in AD, though a substantial clinical evidence gap remains ahead of phase 1 data expected by mid-2027.¹ The financing gives the combined company runway into the second half of 2028, spanning the anticipated phase 1b and phase 2b readouts.¹

References

1. Aethlon Medical & North Immunology announce merger to advance novel IL-13 x IL-18 bispecific antibody for atopic dermatitis. News release. Aethlon Medical. September 17, 2026. Accessed September 21, 2026. https://www.aethlonmedical.com/news-media/press-releases/detail/529/aethlon-medical-north-immunology-announce-merger-to
2. About North Immunology. North Immunology. Accessed September 21, 2026. www.northimmunology.com

Frequently Asked Questions

What is NOR-101 being developed to treat?
NOR-101 is a half-life extended anti-IL-13 x IL-18 bispecific antibody being developed by North Immunology for atopic dermatitis, with a phase 1a study planned for the first quarter of 2027.

How does NOR-101 work?
NOR-101 is designed to simultaneously inhibit IL-13 and IL-18 signaling, targeting both type 2 and non-type 2 inflammatory pathways implicated in AD within a single bispecific molecule.

What did the Aethlon-North Immunology merger announcement include?
The merger includes an oversubscribed $180 million private placement expected to fund the combined company, which will operate as North Immunology, Inc. (Nasdaq: NRTX), into the second half of 2028.