Minovia Therapeutics Aims for Public Market via SPAC Merger

Israeli biotech company Minovia Therapeutics is set to enter the public market through a merger with special purpose acquisition company (SPAC) Launch One Acquisition. The deal, announced on June 25, 2025, comes at a time when traditional initial public offerings (IPOs) remain challenging in the current economic climate.

Merger Details and Valuation

The merger agreement values Minovia at a pre-money equity valuation of $180 million. This figure is expected to increase with a planned bridge financing of at least $5 million to be provided to Minovia equity holders within 30 days of signing. Upon completion of the transaction, the combined entity will operate under the name Mito US One and will be listed on the Nasdaq stock exchange.

Additional provisions in the agreement could see Minovia's equity holders receive up to $57.5 million worth of additional shares post-closure. The deal also anticipates at least $18 million in private investment in public equity (PIPE) funding. Launch One's trust account, containing approximately $240 million, may provide further capital to Mito US One, subject to redemptions by public shareholders.

Minovia's Pipeline and Technology

At the heart of Minovia's appeal is its innovative mitochondrial augmentation technology (MAT) platform. The company's lead product, MNV-201, is currently undergoing clinical trials for two distinct indications:

1. A mid-stage trial for Pearson Syndrome, a rare and severe pediatric disorder. The U.S. Food and Drug Administration (FDA) has granted MNV-201 both fast track designation and rare pediatric disease status for this indication.

2. A phase 1b study for low-risk myelodysplastic syndrome, a chronic blood disorder.

MNV-201 is an autologous cell therapy derived from patients' own CD34+ hematopoietic stem and progenitor cells. Minovia believes its MAT platform has the potential to address both rare genetic mitochondrial diseases and age-related mitochondrial dysfunction disorders, potentially opening up a new category of cell therapies.

Strategic Implications and Future Outlook

Chris Ehrlich, CEO of Launch One Acquisition, expressed enthusiasm for Minovia's potential, stating, "Minovia provides a clinical-stage platform with the potential to lead an entirely new category of cell therapy." He also highlighted the company's plans to establish U.S.-based GMP manufacturing by the end of 2025, which would enable Minovia to scale its rare disease and longevity programs globally.

The merger and subsequent public listing are expected to provide Minovia with the necessary capital to advance its pipeline, particularly supporting the development of MNV-201. As the company progresses towards pivotal trials, the influx of funds and increased visibility as a public entity could accelerate its research and development efforts in the competitive field of cell therapy.