PHILADELPHIA, PA — Vallon Pharmaceuticals, Inc. (NASDAQ: VLON) recently reported its financial results for the fiscal year that ended December 31, 2022.
In December 2022, Vallon announced it had entered into a definitive agreement with GRI Bio, Inc., a privately held biotechnology company with the goal of advancing an innovative pipeline of Natural Killer T (“NKT”) cell regulators for the treatment of inflammatory, fibrotic and autoimmune diseases. Pursuant to the Merger Agreement, GRI Bio will merge with a wholly-owned subsidiary of Vallon in an all-stock transaction (the “Merger”). The combined company will focus on advancing GRI Bio’s innovative pipeline of NKT cell regulators for the treatment of inflammatory, fibrotic and autoimmune diseases with an initial focus on Idiopathic Pulmonary Fibrosis (“IPF”). Following the closing of the Merger, the combined company is expected to operate under the name “GRI Bio, Inc.” and will focus on the development of GRI Bio’s pipeline and trade on The Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “GRI”. The transaction is expected to close in the second quarter of 2023.
David Baker, Chief Executive Officer of Vallon, commented, “The latter part of 2022 was focused on evaluating strategic alternatives in order to maximize shareholder value. We believe that merging with GRI Bio and advancing a potentially deep pipeline, leveraging its innovative NKT regulator technology represents the best path forward for Vallon shareholders in the near and long term. We continue to work towards the successful closing of our proposed merger agreement with GRI Bio, which we expect to be completed early in the second quarter of this year.”
Summary of Financial Results for Fiscal Year 2022
Net loss was $7.0 million and $9.3 million for the fiscal years ended December 31, 2022, and 2021, respectively.
Research and development expenses were $1.2 million and $5.2 million for the fiscal years ended December 31, 2022, and 2021, respectively. The decrease in research and development expenses was primarily due to a decrease in the development program of ADAIR, personnel expenses, including stock-based compensation and consulting fees. General and administrative expenses were $5.8 million and $4.1 million for the fiscal years ended December 31, 2022, and 2021, respectively. The increase in general and administrative expenses was primarily related to increased costs as a result of the Company’s evaluation of strategic alternatives.
As of December 31, 2022, the Company had cash and cash equivalents of approximately $3.8 million.
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