Nasdaq’s opening bell will ring for USC research startup

A USC-licensed startup that developed an intranasal drug delivery system for brain tumors will be listed for the first time on Nasdaq on Wednesday. To celebrate the direct listing, the USC Stevens Center for Innovation and the startup, NeOnc Technologies Holdings Inc., will ring the opening bell at 9:30 a.m. EDT/6:30 a.m. PDT.

NeOnc is based on intellectual property developed by neurosurgeon and NeOnc founder Thomas Chen of Keck Medicine of USC, who is also a tenured professor of neurological surgery and pathology with the Keck School of Medicine of USC. NeOnc is the first USC-licensed biotech company with agreements through USC Stevens to go public.

The promising cancer drug is just one example of the groundbreaking discoveries that research universities bring from the bench to a patient’s bedside through collaborations with biomedical and pharmaceutical companies.

“University research is the cornerstone of groundbreaking medical advancements,” said Ishwar Puri, USC senior vice president, research and innovation. “Our researchers and innovators are pioneering novel treatments that have the potential to transform patient care. By fostering collaboration across disciplines and with industry collaborators, we accelerate the path from discovery to real-world impact, ensuring that scientific breakthroughs lead to tangible improvements in human health.”

USC holds an equity interest of less than 5% in the startup. Chen, who has been studying the potential treatment for more than a decade, is a shareholder and the founder of NeOnc.

NeOnc: USC-licensed startup’s initial focus

NeOnc’s initial focus is on treating malignant gliomas with a proprietary drug called NEO100, an ultra-purified perillyl alcohol with cancer-fighting properties now in phase 2 clinical trial.

Glioblastoma, the most aggressive malignant glioma, is among the toughest cancers to treat, due to its ability to infiltrate brain tissue. Complete surgical removal is difficult, and median survival is only 15 months. Malignant gliomas affect up to 15,000 Americans each year.

“Our approach allows us to bypass the blood-brain barrier and target the tumor directly,” said Chen, who estimates he has treated over 1,000 glioblastoma patients since he joined the USC faculty in 1997. “The molecule we’re delivering is inhaled through the nose, crosses the nasal passage, interacts with the olfactory nerve and then enters the cerebrospinal fluid and circulates throughout the brain. This is different from traditional chemotherapy which is usually given orally and intravenously.”

Researchers completed phase 1 clinical trials demonstrating safety and tolerance to NEO100 in 2019. For the phase 2 clinical studies now underway, NeOnc has 10 clinical sites recruiting patients and has recently partnered with a clinical research organization to launch clinical trials across 30 FDA-compliant clinical research sites in India, increasing patient enrollment and accelerating global development efforts.

‘Pivotal milestone’ for USC-licensed startup NeOnc

Amir Heshmatpour, the co-founder and executive chairman of NeOnc, said of the direct listing: “This marks a pivotal milestone in our clinical journey. We remain fully committed to accelerating the path to market for our transformative treatments. This listing is more than just a milestone — it’s a clear signal of our momentum and the strength of our vision. We’re entering a new chapter, and the best is yet to come.”

Chen has his sights on other targets besides glioblastoma. Inhaled drugs could be used to treat pediatric brain tumors, metastatic brain cancer or even drugs that fight Alzheimer’s disease.

“What we’re doing is proving the principle that our delivery method can effectively transport agents to the brain,” Chen said. “Once we demonstrate this for brain cancer, the same approach could be used for any brain disease where there’s a potential therapeutic effect.”

USC Stevens works to move the discoveries of USC researchers from the lab to the marketplace. It was launched in 2004 with a $22 million endowment from Mark and Mary Stevens. Mark Stevens is a USC Viterbi School of Engineering alumnus and USC trustee.

Erin Overstreet, executive director of USC Stevens, said NeOnc’s direct listing illustrates the importance of the university’s support for scientific innovation.

“Stevens’ role is to support early-stage companies like NeOnc with startup-friendly terms that enable progress toward critical milestones — like a public listing — and without creating unnecessary barriers.”