vTv's Strategic Pivot: $20M Deal Fuels Diabetes Focus, Offloads Global Asset

HIGH POINT, NC – February 02, 2026 – vTv Therapeutics has executed a significant strategic maneuver, amending a licensing agreement to grant Newsoara Biopharma Co. Ltd. exclusive worldwide rights to its promising inflammation drug, HPP737. The deal provides vTv with an immediate $20 million cash infusion, a move that sharpens the company’s focus squarely on its flagship program: a potential first-in-class oral therapy for type 1 diabetes.

The expanded partnership transforms a regional collaboration into a global one, handing the reins of HPP737's future development and commercialization to Newsoara. For vTv, the transaction is a calculated decision to monetize a valuable pipeline asset, securing non-dilutive funding to advance its late-stage diabetes candidate, cadisegliatin, through its critical Phase 3 trial.

A Strategic Infusion to Fuel a Breakthrough

The financial terms of the amended agreement provide a substantial boost to vTv's balance sheet. Beyond the $20 million upfront payment, the deal includes the potential for approximately $50 million in future development milestones and up to $65 million in sales-based milestones. Furthermore, vTv is set to receive tiered royalties on global net sales, allowing the company to retain a long-term interest in HPP737's success without bearing the cost and risk of its global development.

This influx of capital is pivotal for the North Carolina-based biopharmaceutical company. It extends its financial runway and provides the necessary resources to support the ongoing Phase 3 CATT1 trial for cadisegliatin. This move is consistent with vTv's recent financial strategy, which included an $80 million private placement in September 2025, demonstrating a clear focus on securing the funding needed for its primary objective.

“We are pleased to expand our license with Newsoara to allow the further development and commercialization of HPP737 globally. The amendment strengthens our balance sheet with the upfront payment of $20 million and underscores the intrinsic value of our deep pipeline of differentiated therapeutic assets,” said Paul Sekhri, Chairman, President and CEO of vTv Therapeutics, in a statement. “As we continue to advance cadisegliatin in our ongoing Phase 3 CATT1 trial, our wholly owned pipeline provides shareholders with another significant source of potential value creation.”

Unlocking the Global Potential of HPP737

While vTv pivots to its diabetes program, Newsoara takes control of a potentially best-in-class asset for inflammation-mediated diseases. HPP737 is a novel, selective phosphodiesterase type 4 (PDE4) inhibitor being developed primarily for psoriasis. The class of PDE4 inhibitors is well-established, but its use has been historically hampered by significant gastrointestinal side effects, including nausea and vomiting, which can limit dosing and patient adherence.

HPP737's key innovation lies in its potential to bypass this critical limitation. Phase 1 clinical studies showed the drug was well tolerated with minimal or no GI distress. This favorable profile is attributed to its high selectivity and potency, which may allow it to achieve therapeutic effects at doses that do not trigger the common side effects of competitors like Amgen's Otezla. With Newsoara already advancing HPP737 in Phase 2 trials in China for psoriasis, COPD, and atopic dermatitis, the company is well-positioned to spearhead a global development program.

“Alliance management is a major strategic priority for vTv, and our strong relationship with Newsoara demonstrates this commitment and our mutual desire to advance new and innovative therapies for inflammation-mediated disease,” noted Rich Nelson, Executive Vice President at vTv Therapeutics.

Newsoara, established in 2018, has built a reputation for its global development strategy, with clinical trials and dual regulatory filings spanning China, the U.S., and Australia. This expertise makes it an ideal partner to navigate the complex international landscape required to bring a new drug to patients worldwide.

“With this expanded license, we plan to leverage our development and commercialization capabilities to advance HPP737’s progress and, if approved, bring it to patients worldwide,” stated Dr. Benny Li, CEO of Newsoara.

Doubling Down on a First-in-Class Diabetes Hope

For vTv, the HPP737 deal is ultimately a story about its lead candidate, cadisegliatin. The out-licensing of a secondary asset allows the company to dedicate its full financial and operational might to what it hopes will be a paradigm-shifting treatment for type 1 diabetes (T1D). Cadisegliatin is a novel, oral, liver-selective glucokinase activator, a mechanism that works to improve glycemic control independently of insulin.

The drug has already been granted Breakthrough Therapy designation by the U.S. Food and Drug Administration, highlighting its potential to address a serious unmet need for the millions of people living with T1D who rely on insulin injections. The program has also overcome previous regulatory hurdles, with an FDA clinical hold being lifted in 2025, paving the way for the current Phase 3 trial.

By monetizing HPP737, vTv not only secures funding for the CATT1 trial but also de-risks its overall business model. It transforms a preclinical or early-phase asset into immediate, non-dilutive capital while retaining a stake in its future upside. This strategy allows management to focus intensely on execution for its most promising program, a move that has been received positively by analysts.

The company is also exploring cadisegliatin's potential beyond T1D, having submitted a Phase 2 protocol to study the drug in type 2 diabetes. This broader ambition underscores the importance of the HPP737 deal in providing the strategic flexibility and financial stability needed to pursue a high-risk, high-reward pipeline. This partnership exemplifies a classic biotech strategy: leveraging collaborations to unlock the value of the entire portfolio while concentrating resources on the asset with the greatest potential to transform patient care and shareholder value.