Neothetics

About Neothetics

Neothetics, Inc. was a clinical-stage specialty pharmaceutical company, founded in 2007 and based in San Diego, that focused on developing therapeutics for the aesthetic market. Previously known as Lithera, the company's primary business was centered on the development of a non-surgical, injectable drug for localized fat reduction and body contouring. The company's target clients were non-obese individuals seeking to reduce subcutaneous fat in specific areas like the abdomen and under the chin.

The company's lead product candidate was LIPO-202, an injectable formulation of salmeterol xinafoate. This active ingredient is a well-known long-acting ß2-adrenergic receptor agonist, which is used in several FDA-approved drugs for asthma, including Advair. Neothetics' approach was based on the premise that locally injecting LIPO-202 would activate ß2-adrenergic receptors on fat cells, triggering the body's natural process of metabolizing stored fat and thereby shrinking the fat cells without damaging surrounding tissue. The intended benefit was a non-invasive procedure for body contouring that required no downtime.

Neothetics achieved a significant milestone in November 2014 when it went public with a $65 million initial public offering (IPO) on the NASDAQ under the ticker symbol NEOT. The capital raised was intended to fund pivotal Phase III trials for LIPO-202 for the reduction of abdominal fat. However, the company faced significant setbacks. In late 2015, its Phase III trials for abdominal fat reduction failed to meet their primary endpoints. Subsequently, in June 2017, a Phase II trial of LIPO-202 for reducing submental fat (double chin) also failed, demonstrating no improvement compared to a placebo. Following these clinical trial failures, Neothetics began to explore strategic alternatives. This led to a definitive merger agreement with Evofem Biosciences, Inc., announced in October 2017. The merger was completed in January 2018, with the combined entity operating as Evofem Biosciences and focusing on women's healthcare products. The transaction resulted in former Neothetics stockholders owning approximately 13% of the new company.