NeOnc Technologies Awarded $2.5 Million in NIH STTR Grants to Advance NEO212 in Gliomas and Leukemia

Rhea-AI Summary

NeOnc Technologies (NASDAQ: NTHI) has secured $2.5 million in NIH STTR grants to advance its proprietary compound NEO212. The funding includes a $400,000 Phase 1 grant for acute myelogenous leukemia (AML) studies and a $2.1 million Phase 2 grant for newly diagnosed gliomas research.

The company is currently completing Phase 1 clinical trials for NEO212, with these non-dilutive funds supporting its expansion into new indications. The grants are structured as collaborative developments between NeOnc (40% funding) and USC-based research collaborators (60% funding), led by Dr. Thomas Chen as Principal Investigator.

Positive

• Secured non-dilutive funding of $2.5 million through NIH STTR grants
• NEO212 completing Phase 1 clinical trials, advancing toward Phase 2
• Expanding therapeutic potential into multiple indications (gliomas and leukemia)
• Strong academic collaboration with USC research team

Negative

• Early-stage clinical development with no approved products yet
• Operating in highly competitive oncology space with uncertain outcomes

Insights

Biotech Investment Analyst

NIH grants provide $2.5M non-dilutive funding and scientific validation for NeOnc's NEO212 program, strengthening their financial position as they transition to Phase 2 trials.

NeOnc Technologies has secured $2.5 million in competitive NIH STTR grants, providing crucial non-dilutive capital as the company approaches completion of its Phase 1 trial for NEO212. The funding is strategically timed to support the company's transition into Phase 2 development - a critical inflection point for clinical-stage biotechs where capital requirements typically increase substantially.

The grants are particularly significant for three key reasons:

• They expand NEO212's development into acute myelogenous leukemia (AML) and newly diagnosed gliomas, broadening the potential market opportunity beyond the initial indications
• They provide third-party scientific validation from the highly selective NIH grant review process, which typically funds less than 20% of applications
• The collaborative structure with USC (with 60% of funds directed to academic partners) leverages academic expertise while minimizing NeOnc's internal resource requirements

For a small biotech, these grants represent more than just capital - they reduce cash burn while expanding clinical potential. The $2.5 million provides breathing room as NeOnc approaches the critical end-of-Phase 1 milestone, where clinical data will determine advancement pathways. The diversification into AML is particularly noteworthy, as it demonstrates potential application beyond CNS malignancies and expands the addressable market substantially. The grant timing suggests confidence in preliminary Phase 1 data, though specific efficacy signals weren't disclosed in this announcement.

Oncology Research Specialist

NIH funding validates NEO212's scientific potential across multiple cancer types, supporting its development as the compound transitions from Phase 1 to Phase 2 trials.

The NIH's substantial investment in NEO212 through two separate STTR grants suggests the compound has demonstrated meaningful preclinical and early clinical promise. The expansion into AML represents a significant broadening of NEO212's potential applications beyond the blood-brain barrier, suggesting the mechanism of action may have wider utility than initially targeted CNS malignancies.

These grants support two distinct but complementary research paths:

• The $400,000 Phase 1 grant explores feasibility in AML - a high-mortality hematologic malignancy with limited treatment options for refractory cases
• The $2.1 million Phase 2 grant supports expansion into newly diagnosed gliomas, complementing NeOnc's existing work in recurrent glioblastoma

The involvement of USC's Glioma Research Group, led by Dr. Schönthal, provides specialized expertise in glioma biology and translational research. The collaborative structure reflects the translational nature of the research - bridging fundamental science with clinical application.

While specific mechanisms weren't detailed, NEO212 likely builds on known temozolomide chemistry with novel modifications to enhance efficacy or reduce resistance. The grant reviewer confidence suggests the compound may address key limitations of current standard-of-care treatments. The dual-indication approach is particularly strategic, as positive signals in either pathway would maintain momentum for the development program. The timing of these grants as NEO212 completes Phase 1 suggests preliminary safety data is encouraging enough to warrant expansion into additional indications.

CALABASAS, Calif., Aug. 07, 2025 (GLOBE NEWSWIRE) -- NeOnc Technologies Holdings, Inc. (NASDAQ: NTHI), a multi–Phase 2 clinical-stage biotechnology company focused on breakthrough therapies for central nervous system (CNS) malignancies, today announced the award of two competitive NIH STTR (Small Business Technology Transfer) grants totaling $2.5 million. These non-dilutive funds will further advance development of the company’s proprietary therapeutic compound NEO212, which is currently completing its Phase 1 clinical trial.

• $400,000 Phase 1 STTR Grant (1R41CA27179-01A1): Supports preclinical feasibility studies of NEO212 in acute myelogenous leukemia (AML). Dr. Thomas Chen serves as NeOnc’s Principal Investigator (PI), with Dr. Axel H. Schönthal leading the academic research effort at USC’s Glioma Research Group.
• $2.1 Million Phase 2 STTR Grant (2R42CA246902-02): Focused on expanding NEO212’s clinical development into newly diagnosed gliomas, reinforcing the therapeutic’s broad oncologic potential. Dr. Chen is the PI for NeOnc, with Dr. Radu Minea leading the USC component.

These prestigious NIH awards arrive as NeOnc approaches the end-of-Phase 1 milestone for NEO212, marking a pivotal point in the company’s path toward Phase 2 trial initiation and potential regulatory engagement.

“Securing $2.5 million in competitive NIH grants during one of the most uncertain federal funding periods reaffirms the scientific and clinical promise of NEO212,” said Dr. Thomas Chen, CEO and Chief Medical Officer of NeOnc Technologies Holdings, Inc. “As a brain and spine oncologic surgeon for over 30 years at Keck Medical Center of USC, I have witnessed the urgent need for novel, less toxic therapies. These grants are a testament to our research team’s commitment and our ability to translate academic science into meaningful treatments.”

The STTR mechanism enables collaborative development between NeOnc and leading academic institutions, with each grant structured as 40% funding to NeOnc Technologies and 60% to its USC-based research collaborators.

This funding builds on NeOnc’s growing clinical and translational momentum as the company continues to innovate across glioblastoma, leukemia, and other high-unmet-need indications.

ABOUT NEONC TECHNOLOGIES HOLDINGS, INC.
NeOnc Technologies Holdings, Inc. is a clinical-stage life sciences company focused on the development and commercialization of central nervous system therapeutics that are designed to address the persistent challenges in overcoming the blood-brain barrier. The company’s NEO^™ drug development platform has produced a portfolio of novel drug candidates and delivery methods with patent protections extending to 2038. These proprietary chemotherapy agents have demonstrated positive effects in laboratory tests on various types of cancers and in clinical trials treating malignant gliomas. NeOnc’s NEO100^™ and NEO212^™therapeutics are in Phase II human clinical trials and are advancing under FDA Fast-Track and Investigational New Drug (IND) status. The company has exclusively licensed an extensive worldwide patent portfolio from the University of Southern California consisting of issued patents and pending applications related to NEO100, NEO212, and other products from the NeOnc patent family for multiple uses, including oncological and neurological conditions.

For more about NeOnc and its pioneering technology, visit neonc.com.

Important Cautions Regarding Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “intend,” “expect,” “plan,” “budget,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “evaluating,” or similar words. Statements that contain these words should be read carefully, as they discuss our future expectations, projections of future results of operations or financial condition, or other forward-looking information.

Examples of forward-looking statements include, among others, statements regarding whether a definitive agreement will be reached with Quazar. These statements reflect our current expectations based on information available at this time, but future events may differ materially from those anticipated.

The “Risk Factors” section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, along with other cautionary language in that report or in our subsequent filings, outlines important risks and uncertainties. These may cause our actual results to differ materially from the forward-looking statements herein, including but not limited to the failure to finalize the agreement with Quazar, modifications to its terms, or alternative uses of proceeds.

We assume no obligation to revise or update any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by applicable securities laws and regulations.

“NEO100” and NEO “212” are registered trademarks of NeOnc Technologies Holdings, Inc.

Company Contact:
info@neonc.com

Investor Contact:
James Carbonara
Hayden IR
(646)-755-7412
James@haydenir.com

FAQ

What is the total value of NIH STTR grants awarded to NeOnc Technologies (NTHI)?

NeOnc Technologies received $2.5 million in total NIH STTR grants, comprising a $400,000 Phase 1 grant for AML studies and a $2.1 million Phase 2 grant for gliomas research.

What is the current development stage of NeOnc Technologies' NEO212 compound?

NEO212 is completing its Phase 1 clinical trial and approaching end-of-Phase 1 milestone, preparing for Phase 2 trial initiation.

How are the NIH STTR grants structured for NeOnc Technologies (NTHI)?

The grants are structured as 40% funding to NeOnc Technologies and 60% to USC-based research collaborators, promoting collaborative development between the company and academic institutions.

What medical conditions is NeOnc Technologies targeting with NEO212?

NeOnc is developing NEO212 for central nervous system (CNS) malignancies, specifically targeting gliomas, glioblastoma, and acute myelogenous leukemia (AML).

Who is leading the research efforts for NeOnc Technologies' NEO212 development?

Dr. Thomas Chen serves as NeOnc's Principal Investigator, with Dr. Axel H. Schönthal leading AML research and Dr. Radu Minea leading gliomas research at USC.