Diffusion Pharmaceuticals Inc. (Nasdaq: DFFN)
(“Diffusion” or “the Company”), today announced the appointment of
Christopher D. Galloway, M.D. to Chief Medical Officer, effective
immediately. Dr. Galloway will report to Robert Cobuzzi, Ph.D.,
Diffusion’s Chief Executive Officer.
Dr. Galloway is board certified in Emergency
Medicine and will assume responsibility of leading the Company’s
product development efforts, including clinical trials with Trans
Sodium Crocetinate (“TSC”), which is being evaluated in an ongoing
Phase 1b clinical study in Romania in patients with COVID-19. In
addition, Dr. Galloway will lead the expansion of the Company’s
work with TSC into other hypoxia-related conditions. Dr. Galloway
brings to Diffusion more than 20 years of experience both in
industry leadership roles in clinical development and medical
affairs across multiple therapeutic areas and stages of
development, as well as the perspective of a practicing
physician.
“We are delighted to welcome Chris as a member
of the Diffusion team. He brings a breadth of therapeutic area
experiences both as a practicing physician and from his time in the
biopharmaceutical industry. His leadership will be of significant
benefit for Diffusion as we continue and expand the development of
TSC for conditions and diseases where low oxygen levels are an
issue, including respiratory diseases, such as COVID-19, oncology,
and other hypoxia-related conditions,” said Dr. Cobuzzi.
Dr. Galloway joins Diffusion from La Jolla
Pharmaceuticals, where he has served as Senior Medical Director in
critical care since August 2018. Among his duties at La Jolla, he
chaired and oversaw the investigator-initiated and collaborative
research programs, as well as supported the commercial and medical
teams for the launch of GIAPREZA™ (angiotensin II). Prior to La
Jolla, he was Medical Director for global clinical development at
the immuno-oncology company, Rakuten Medical. At Rakuten, he was
involved in clinical development, operations, and trial execution
from Phase 1 through Phase 3 in multiple indications. Previously he
has served as Medical Affairs Director within Merck’s immunotherapy
division, and also led the team at DaVita Clinical Research as
Medical Director and Principal Investigator specializing in early
phase studies.
“I am thrilled to be joining the talented team
at Diffusion and overseeing the development of our lead product,
TSC,” said Dr. Galloway. “Hypoxia-related pathology is prevalent
across a multitude of medical conditions and therapeutic
disciplines, and I believe TSC has the potential for meaningful
improvement in patient care and outcomes.”
Dr. Galloway received his M.D. degree from the
University of Texas Medical Branch at Galveston, and completed his
residency in Emergency Medicine at Carolinas Medical Center in
Charlotte, N.C. He received a BA in biology from the University of
Texas at Austin, and is licensed to practice medicine in Colorado.
Dr. Galloway is a Diplomate of the American Board of Emergency
Medicine.
Inducement Grant
Under NASDAQ Listing Rule
5635(c)(4
In connection with Dr. Galloway’s new
employment, the Compensation Committee of Diffusion’s Board of
Directors has approved the grant of non-qualified stock options to
Dr. Galloway, who will receive options to purchase 200,000 shares
of Diffusion’s common stock. The grant date for the options will be
October 19, 2020, and the exercise price per share for such stock
options will be the closing price of Diffusion’s common stock on
such date, as reported by NASDAQ. The grant was approved and will
be made as an inducement material to Dr. Galloway’s acceptance of
employment with Diffusion, in accordance with NASDAQ Listing Rule
5635(c)(4).
The options will have a 10-year term and will
vest on a monthly basis over the 36 months after the date of grant,
subject to Dr. Galloway’s continuous employment with Diffusion
through each applicable vesting date. In addition, the options will
be subject to acceleration or forfeiture upon the occurrence of
certain events as set forth in Dr. Galloway’s option and employment
agreements.
About Diffusion Pharmaceuticals
Inc.
Diffusion Pharmaceuticals Inc. is an innovative
biopharmaceutical company developing novel therapies to improve the
body’s ability to deliver oxygen to the areas where it is needed
most, offering new hope for the treatment of life-threatening
medical conditions.
Diffusion’s lead drug candidate, TSC, was
originally developed in conjunction with the United States (“U.S.”)
Office of Naval Research to treat multiple organ failure and its
resulting mortality caused by low oxygen levels from blood loss on
the battlefield. Evolutions in research have led Diffusion to focus
today on addressing some of medicine’s most intractable and
difficult-to-treat conditions involving cellular oxygen deficiency,
or hypoxia, such as COVID-19, stroke, glioblastoma multiforme
(“GBM”) brain cancer, and other conditions and diseases in which
hypoxia is a critical factor which presents a significant obstacle
for medical providers and is the target for TSC’s novel mechanism
of action.
Using principles of physical chemistry, TSC was
developed to increase the amount of hydrogen bonding among water
molecules. The increased level of hydrogen bonding may increase the
level of organization among the water molecules, creating a less
dense matrix through which oxygen molecules can move more
efficiently from areas of high to low oxygen concentrations. We
believe this novel mechanism of action results in an enhancement of
the rate of oxygen diffusion from the lungs onto red blood cells
and then from red blood cells into body tissue where the oxygen is
used to power the cells. This novel diffusion-enhancing mechanism
has been observed to affect hypoxic tissue selectively, thus
avoiding problems of tissue over-oxygenation and related oxygen
toxicity.
Diffusion is currently partnering with U.S. and
European institutions on an expedited research program to develop
TSC as a treatment for the low oxygen levels and associated
multiple organ failure in COVID-19 patients.
Forward-Looking Statements
To the extent any statements made in this news
release deal with information that is not historical, these are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited
to, statements about the company's plans, objectives, expectations
and intentions with respect to future operations and products, the
potential of the company's technology and product candidates, and
other statements that are not historical in nature, particularly
those that utilize terminology such as "would," "will," "plans,"
"possibility," "potential," "future," "expects," "anticipates,"
"believes," "intends," "continue," "expects," other words of
similar meaning, derivations of such words and the use of future
dates. Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. Uncertainties and risks
may cause the Diffusion’s actual results to be materially different
than those expressed in or implied by such forward-looking
statements. Particular uncertainties and risks include the
Company’s ability to develop TSC as a treatment for COVID-19 or any
other medical condition and the various risk factors (many of which
are beyond Diffusion’s control) as described under the heading
“Risk Factors” in Diffusion’s filings with the United States
Securities and Exchange Commission. All forward-looking statements
in this news release speak only as of the date of this news release
and are based on management's current beliefs and expectations.
Diffusion undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Company Contact:Robert Cobuzzi,
Ph.D., CEODiffusion Pharmaceuticals Inc.(434)
220-0718rcobuzzi@diffusionpharma.com
Investor Contact:LHA Investor
RelationsKim Sutton Golodetz(212) 838-3777kgolodetz@lhai.com
Media Contact:Jeffrey
FreedmanRooneyPartners(646) 432-0191jfreedman@rooneyco.com
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