Kainos Medicine Inc., a Korean clinical-stage drug developer company, said on Friday that it has received approval from Korea Exchange (KRX) on its planned merger with Kosdaq-listed Hana Financial Eleventh Special Purpose Acquisition Co., gaining traction in the research of investigative compound KM-819 to treat Parkinson’s disease.

The company established in 2007 is planning to conduct a phase 2 study and explore a new indication to treat multiple system atrophy (MSA).

KM-819 is known to inhibit FAF1, a key protein involved in the progression of Parkinson’s disease. In a phase 1 study completed in 2017, the compound demonstrated safety with few side effects and efficacy was proven in multiple non-clinical studies.

The company also said its U.S. affiliate has almost completed talks with a potential investor who has interest in conducting a phase 2 study of KM-819 in the U.S.

Parkinson’s disease becomes prevalent with the aging population, but there is no cure. Therapies available in the market are designed to relieve symptoms.

Kainos Medicine is also studying KM-819 for the treatment of MSA, which is like Parkinson’s disease in the gradually progressive neurodegenerative process, but it progresses faster with high mortality.

The listing on the Kosdaq through the merger will pave the way to put more efforts to develop a central nervous system drug, said Kainos Medicine CEO Lee Ki-sup.

By Kim Byung-ho and Minu Kim

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