Appili Therapeutics Seeks $117.5M in Funding and Provides Aditxt Deal Updates

March 18, 2025

DENVER, Colo., Mar 18, 2025 (247marketnews.com)- Appili Therapeutics (OTC:APLIF) revealed that it collaborating with partners to submit four funding proposals to U.S. federal agencies, targeting up to $117.5 million. These proposals aim to accelerate the development of critical therapies addressing urgent public health needs. Alongside this, Appili provided updates on its U.S. Air Force Academy (USAFA) agreement and its ongoing going-private transaction with Aditxt (NASDAQ:ADTX).

Funding Proposals to Tackle Infectious Threats

Drawing on its track record in securing government contracts, Appili and its partners submitted two proposals to the National Institute of Allergy and Infectious Diseases (NIAID). The first, seeking $46.3 million, focuses on developing a vaccine to combat invasive fungal infections. The second, requesting $36.4 million, targets an antifungal monoclonal antibody for a rare fungal infection. If approved, these funds would propel both projects through Investigational New Drug (IND) applications and into Phase 1 clinical trials.

Additionally, Appili pitched two proposals to the U.S. Medical CBRN Defense Consortium (MCDC), totaling US$34.8 million. The first, at $20.1 million, aims to create a broad-spectrum host-directed treatment for viral infections, designed to protect warfighters from high-risk viral threats in collaboration with partners. The second, seeking $14.7 million, focuses on a broad-spectrum antiviral to tackle RNA viruses like influenza, coronaviruses, West Nile, and Zika. Success here would fund manufacturing, preclinical work, and regulatory steps toward IND submissions.

Joining the MCDC: A Biodefense Milestone

Appili’s recent acceptance into the MCDC, a consortium that has disbursed over $7 billion in project funding, underscores its rising role in U.S. biodefense efforts. This membership opens doors to collaborate with industry leaders, engage government stakeholders, and chase funding aligned with the U.S. Department of Defense’s priorities—cementing Appili’s foothold in medical countermeasures.

Proven Funding Success: $33.2M and Counting

To date, Appili has secured approximately $33.2 million in non-dilutive government funding, a testament to its knack for crafting winning proposals and forging strategic alliances. Past awards fueled key pipeline projects, including ATI-1701, a vaccine candidate against a severe bioweapon threat, and LIKMEZ (ATI-1501), an FDA-approved metronidazole suspension for antimicrobial infections.

USAFA Agreement Update: Progress with a Catch

Appili also shared an update on its ATI-1701 collaboration with the United States Air Force Academy (USAFA), originally awarded $14 million, with $11.6 million allocated for services. A recent tweak to the Cooperative Agreement boosted the General & Administrative (G&A) overhead recovery rate, applied retroactively, increasing reimbursements for past and future invoices—a financial win for Appili. To date, $9.7 million has been reimbursed, covering labor, subcontractors, and other costs. However, U.S. Defense Department budget constraints mean no additional funds beyond the $11.6 million are expected soon, pushing the anticipated IND filing for ATI-1701 past 2025 unless new resources emerge. Appili remains committed, invoicing USAFA as it advances the program within current funding.

Aditxt Transaction: Deadline Extended

Appili updated its going-private transaction with Aditxt (NASDAQ:ADTX), where Aditxt’s subsidiary, Adivir, will acquire all of Appili’s Class A common shares via a court-approved plan under Ontario’s Business Corporations Act. Shareholders overwhelmingly approved the deal, and all court nods are in hand. However, the transaction hinges on Aditxt securing financing. On February 28, 2025, Appili extended the deadline to March 31, 2025, in exchange for a $250,000 waiver payment from Aditxt, which will offset any termination fees if the deal falls apart. Assuming conditions are met, Appili expects closure in Q1 2025.

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