NKGen Biotech CEO Invests $2.65M to Advance Alzheimer's Cell Therapy Trial

In a bold move that underscores his commitment to the company's mission, NKGen Biotech CEO Paul Song, M.D., has invested $2.65 million of his personal funds to accelerate the biotech's phase 2 Alzheimer's disease cell therapy trial. This significant financial injection comes at a critical time for the California-based company, which has been grappling with financial challenges in an increasingly difficult biotech market.

Financial Lifeline for Cash-Strapped Biotech

NKGen Biotech's financial situation has been precarious, with the company reporting a mere $8,000 in cash reserves at the end of September and an accumulated deficit of $177 million. The company's financial straits were further highlighted when it delayed filing its annual report in March, citing inability to meet the deadline "without unreasonable effort or expense."

Song's personal investment is part of a larger financial package aimed at stabilizing the company. In addition to his contribution, NKGen has secured $3 million in funding advances from AlpineBrook Capital. These advances are backed by personal guarantees from Song and James Graf, NKGen's interim chief financial officer.

Accelerating Alzheimer's Research

The primary goal of this financial infusion is to accelerate NKGen's phase 2 trial of SNK01, the company's natural killer (NK) cell therapy for moderate Alzheimer's disease. SNK01, which has also been studied in various cancers, is an autologous therapy that involves expanding and activating a patient's own NK cells outside the body before readministering them.

Song's investment reflects his confidence in the potential of NK cells to improve outcomes in Alzheimer's disease, possibly by reducing neuroinflammation. The phase 1/2a study of SNK01 in Alzheimer's patients began in 2023, marking a significant step in the company's research efforts.

Market Response and Future Outlook

Despite Song's optimism, NKGen has struggled to attract widespread investor interest. The company's stock price has fallen dramatically since its public debut via a SPAC merger in 2023. At the time of Song's investment, shares were trading at just 12 cents. However, news of the CEO's personal financial commitment sparked a 33% increase in share price to 18 cents.

As NKGen works to advance its Alzheimer's trial and meet public company reporting requirements, the biotech industry and investors will be watching closely to see if this personal investment from the CEO can translate into clinical success and financial stability for the company.