Indaptus Gets $6M Lifeline, Investor Lazar Takes Helm as Co-CEO

NEW YORK, NY – December 29, 2025 – Clinical-stage biotechnology firm Indaptus Therapeutics announced a significant strategic shift today, securing a $6 million investment from investor David E. Lazar, who will also step in as the company's new Co-Chief Executive Officer and Chairman of the Board. The move signals a pivotal moment for the Nasdaq-listed company, redirecting its focus towards exploring "strategic alternatives" to maximize shareholder value while continuing to evaluate its novel immunotherapy platform.

The deal, which closed on December 23, involves the purchase of non-voting convertible preferred stock. Jeffrey Meckler, the existing CEO, will continue in a Co-CEO capacity and remain on the board, working alongside the new chairman to navigate the company's future. The immediate cash infusion and leadership overhaul come as Indaptus, like many of its peers in the biotech sector, faces the long and capital-intensive process of drug development.

A New Captain and a New Course

The core of the announcement is the dual role taken by David E. Lazar, whose investment provides a crucial financial runway for Indaptus. In a statement, Mr. Lazar framed his involvement as a hands-on approach to value creation. "In making this significant investment in Indaptus, I look forward to continuing to evaluate the Company’s lead product candidate while actively exploring strategic opportunities to drive value for our stockholders," he said. "I appreciate the Board's unanimous support for this transaction and faith in my ability and proven track record to build upon the Company’s foundation and introduce new strategic alternatives."

This focus on "strategic alternatives" is a clear signal to the market that Indaptus may be heading towards a merger, acquisition, asset sale, or significant licensing deal. For clinical-stage companies with promising but unproven technology, such a pivot can be a pragmatic approach to realizing value sooner than the traditional, multi-year path of clinical trials and regulatory approval.

Jeffrey Meckler echoed this sentiment, expressing support for the new direction. "David brings to Indaptus significant expertise, and I look forward to working with him to evaluate the ongoing business, identify business opportunities for the Decoy platform, and seek strategic alternatives that could be transformative for Indaptus’ shareholders," Meckler stated.

The financial structure of the deal involves the issuance of 300,000 shares of Series AA preferred stock and 700,000 shares of Series AAA preferred stock. According to the agreement, these shares can be converted into a substantial number of common stock shares, but this conversion is contingent upon stockholder approval at a meeting planned for the first quarter of 2026. The transaction also triggered a reconstitution of the company's Board of Directors, with Avraham Ben-Tzvi joining and two members stepping down. Following stockholder approval, Mr. Lazar will gain the right to nominate up to three additional directors, solidifying his influence over the company's governance.

The Science Driving the Strategy

At the heart of this strategic maneuvering is Indaptus's proprietary "Decoy" platform, an innovative approach to immunotherapy. The company has developed product candidates based on single strains of attenuated and killed, non-pathogenic Gram-negative bacteria. The underlying hypothesis is that a multi-pronged activation of the immune system is necessary to effectively fight complex diseases like cancer and chronic viral infections.

According to the company, its technology is designed to deliver a package of signals that activate multiple immune pathways—including Toll-like receptors (TLRs), NOD-like receptors (NLRs), and the STING pathway—safely through intravenous administration. This broad activation of both the innate and adaptive immune systems is what Indaptus believes gives its platform an edge.

The company has reported encouraging pre-clinical data, a key factor in attracting an investment of this nature. In studies, Decoy product candidates have demonstrated single-agent activity against difficult-to-treat cancers, such as metastatic pancreatic and orthotopic colorectal carcinomas. Perhaps more importantly in the current therapeutic landscape, the platform has shown powerful synergy in combination with other treatments. Indaptus reported tumor eradication in pre-clinical models when its Decoy candidates were combined with anti-PD-1 checkpoint inhibitors, low-dose chemotherapy, and other targeted therapies.

A critical finding highlighted by the company is the platform's ability to induce a "cold" to "hot" tumor inflammation signature. "Cold" tumors lack immune cells and are notoriously resistant to immunotherapies like checkpoint inhibitors. By turning them "hot"—infiltrating them with immune cells—Indaptus's technology could potentially make a wide range of cancers newly responsive to existing treatments. The platform's potential extends beyond oncology, with pre-clinical models also showing single-agent activity against chronic hepatitis B virus (HBV) and HIV.

Navigating the Path Forward

While the new investment and leadership provide a clear strategic direction, Indaptus still faces the inherent challenges of the biotechnology industry. The company's own forward-looking statements acknowledge the significant hurdles ahead. Securing stockholder approval for the stock conversion is the first and most critical step to fully realizing the terms of the agreement with Mr. Lazar.

Beyond that, the success of the new strategy is not guaranteed. The process of reviewing strategic alternatives can be lengthy and may not result in a transaction. In the meantime, the company must manage its cash reserves carefully, a point underscored by the mention of risks related to its ability to "continue as a going concern" in its SEC filings.

Furthermore, the Decoy platform, despite its pre-clinical promise, is still in the clinical development stage—a "lengthy and expensive process with an uncertain outcome." Competition is fierce, regulatory pathways are complex, and market acceptance is never a certainty. However, the $6 million infusion and the appointment of a leader with a stated focus on shareholder value and strategic transactions provide Indaptus with a renewed sense of purpose and the resources to pursue a new path. The coming months will be critical as the company seeks shareholder buy-in and begins its formal exploration of transformative opportunities for its promising immunotherapy technology.