Rafael Holdings Increases Ownership Stake in LipoMedix Pharmaceuticals to 95%; Shifts Focus Away from Early-Stage Development Efforts

Rafael Holdings increases its stake in LipoMedix Pharmaceuticals

Rafael Holdings, Inc. (RFL), a company focused on the development of novel cancer therapies, has recently increased its ownership stake in LipoMedix Pharmaceuticals Ltd. from 84% to 95%. LipoMedix is a clinical-stage pharmaceutical company developing innovative, safe, and effective cancer therapies based on liposome delivery. The increase in ownership stake signals Rafael Holdings’ commitment to advancing LipoMedix’s product pipeline and furthering their shared goal of addressing high unmet medical needs in the oncology space.

Rafael Holdings to curtail early-stage development efforts

On the other hand, Rafael Holdings has resolved to curtail its early-stage development efforts, including pre-clinical research at Barer Institute, as of November 2022. Barer Institute is a wholly-owned preclinical cancer metabolism research operation. This decision was made to reduce spending and allow the company to focus on exploring strategic opportunities and potentially invest in areas within and beyond biopharma.

Rafael Holdings will no longer invest in Levco Pharmaceuticals

Rafael Holdings disclosed in a recent report that it will no longer pursue further material investment in Levco Pharmaceuticals Ltd., an Israeli company they owned 95% of as of Fiscal 2022. However, the Company remains committed to investing in, funding, and developing potential cancer therapies in addition to expanding its portfolio through opportunistic investments in therapeutics addressing high unmet medical needs.

Shift in focus from real estate to cancer therapies

Historically, Rafael Holdings owned multiple real estate assets, but in recent years has shifted focus primarily to the development of cancer therapies. In 2020, the Company sold an office building in Piscataway, New Jersey, and on August 22, 2022, it sold its headquarters building at 520 Broad Street in Newark, New Jersey, along with an associated public garage. Rafael Holdings still currently holds a portion of a commercial building in Jerusalem, Israel, as its remaining real estate asset.

Setbacks with Cornerstone Pharmaceuticals

Regarding its investment in Cornerstone Pharmaceuticals, Inc., Rafael Holdings experienced setbacks associated with Cornerstoneโ€™s lead product candidate, CPI-613ยฎ (devimistat). On October 28, 2021, the AVENGER 500 Phase 3 clinical trial for devimistat did not meet its primary endpoint of significant improvement in overall survival in patients with metastatic adenocarcinoma of the pancreas. Furthermore, an independent data monitoring committee recommended the ARMADA 2000 Phase 3 study for devimistat to be stopped following a pre-specified interim analysis, as it was unlikely to achieve its primary endpoint. Consequently, Rafael Holdings fully impaired the value of its loans, receivables, and investment in Cornerstone Pharmaceuticals based on their valuation.

Rafael Holdings remains committed to its mission

Despite these challenges and changes, Rafael Holdings remains dedicated to advancing its primary mission: to invest in and develop innovative cancer therapies that address high unmet medical needs. By increasing its stake in LipoMedix Pharmaceuticals and focusing on strategic opportunities rather than early-stage development efforts, Rafael Holdings continues to position itself as a key player in the oncology space.

Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/1713863/000121390023048592/f10q0423_rafaelhold.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!