Devonian Health Group Provides Strategic Corporate Update and Clarifies Details of Private Placement Financing
Devonian Health Group Inc. (“Devonian” or the “Corporation”) (TSXV: GSD; OTCQB: DVHGF), a clinical-stage biopharmaceutical company dedicated to developing innovative therapies for inflammatory and fibrotic diseases, released a comprehensive corporate update detailing advances across its therapeutic pipeline, developments in its commercial business unit, and important clarifications regarding its recently closed private placement financing.
This latest communication underscores the Corporation’s ongoing commitment to scientific rigor, operational transparency, and long-term value creation for both patients and shareholders. With progress on its lead asset Thykamine™, updates on its commercial healthcare division Altius Healthcare LP, and a revised disclosure regarding its financing activities, Devonian is reinforcing its dual-track growth strategy of advancing novel clinical programs while optimizing existing commercial operations.
Thykamine™: Scientific and Clinical Momentum
At the heart of Devonian’s pipeline is Thykamine™, a first-in-class anti-inflammatory and anti-fibrotic therapeutic derived from a plant-based source. The compound continues to show potential as a versatile therapy across a wide range of chronic and debilitating conditions. The company reported meaningful progress on multiple fronts, spanning manufacturing validation, pre-clinical development, formulation innovation, and clinical relevance assessments.
Manufacturing Excellence and Quality Control
One of the key milestones reported was the validation of Thykamine™’s batch-to-batch consistency, a critical achievement for any biopharmaceutical program approaching late-stage development. Using advanced analytical technologies — High Performance Liquid Chromatography–Mass Spectrometry (HPLC-MS) and Nuclear Magnetic Resonance (NMR) — the Corporation confirmed that the compound can be produced at a consistent quality standard.
This validation not only enhances the confidence of regulators and clinical partners but also strengthens Devonian’s manufacturing readiness as it anticipates broader clinical studies and eventual commercialization. Reliable and reproducible production is often a key risk in developing novel therapies, and Devonian’s ability to demonstrate robust consistency marks an important de-risking step for Thykamine™.
Expanding Pre-Clinical Programs: Targeting Inflammation and Fibrosis
Devonian also highlighted advancements in its pre-clinical portfolio, particularly in Metabolic Associated Steatohepatitis (MASH) and pulmonary fibrosis. Both conditions represent high-burden diseases with significant unmet medical needs.
- MASH (formerly known as NASH) affects millions worldwide and is recognized as a leading cause of liver transplantation. With no approved therapies currently dominating the field, Thykamine™’s dual action on inflammation and fibrosis could position it as a competitive entrant.
- Pulmonary fibrosis, a progressive scarring of lung tissue, similarly represents an area of profound unmet need. Therapies capable of both modulating inflammation and preventing fibrotic progression could alter the course of the disease for many patients.
Pre-clinical readouts from these programs are expected in fall 2025, and positive outcomes could significantly expand the value proposition of Thykamine™ into multiple billion-dollar therapeutic markets.
Oral Formulation Development
In parallel with its ongoing topical and intravenous programs, Devonian is investing in the development of oral formulations of Thykamine™ in both liquid and capsule formats. These formulations are intended to unlock additional therapeutic opportunities in diseases where systemic delivery is critical, such as Ulcerative Colitis (UC) and other gastrointestinal inflammatory disorders.
The introduction of oral options broadens the potential commercial reach of Thykamine™, opening pathways into markets where patient preference for oral delivery dominates treatment decisions. This diversification enhances the program’s flexibility, making it adaptable to different disease settings and market dynamics.
Market Validation: Dermatologist Survey in Atopic Dermatitis
Commercial insights further validate Thykamine™’s promise. A U.S.-based survey of dermatologists confirmed strong acceptance of Thykamine™ cream for use in pediatric patients with mild-to-moderate atopic dermatitis (eczema). Pediatric patients are often underserved in dermatology, with limited approved therapies and concerns about long-term steroid use.
By demonstrating both safety and efficacy in this sensitive patient population, Thykamine™ could carve out a meaningful niche in a high-need market. The survey findings support Devonian’s strategy of initially targeting pediatric dermatology while simultaneously pursuing broader systemic indications.
Taken together, these updates suggest that Thykamine™ is not only advancing scientifically but is also resonating with key stakeholders, including regulators, clinicians, and ultimately patients.
Altius Healthcare LP: Commercial Portfolio Developments
Beyond its clinical pipeline, Devonian maintains a commercial footprint through Altius Healthcare LP, which markets pharmaceutical products in Canada. This division provides important near-term revenues that help support Devonian’s broader R&D initiatives.
The Corporation confirmed that as of April 17, 2025, its distribution license for Dexlansoprazole — a therapy for gastroesophageal reflux disease — officially expired and was not renewed. More recently, Devonian was informed that the distribution agreement for Pantoprazole Magnesium, another gastrointestinal therapy licensed from the same partner, will terminate on April 23, 2026.
Pantoprazole contributed 10.6% of Devonian’s revenues for fiscal year 2024 and 4.2% of revenues for the nine-month period ended April 30, 2025. While the product remains a revenue contributor until termination, Devonian is proactively evaluating strategic options for Altius Healthcare LP, including potential new licensing opportunities, portfolio diversification, or restructuring initiatives.
This dual strategy of leveraging commercial operations while advancing clinical innovation reflects Devonian’s pragmatic approach: sustaining near-term cash flows while investing in transformative, longer-term therapies.
Private Placement Financing: Clarification and Revised Details
On the financial front, Devonian provided updated information regarding its recently completed non-brokered private placement financing, originally announced on August 7, 2025.
The Corporation clarified that the previously disclosed gross proceeds of $2,272,999.85 were understated. The corrected figure reflects gross proceeds of $2,362,999.80, an adjustment of approximately $90,000.
The financing consisted of the issuance of 15,753,332 units of the Corporation — not 15,153,332 units as previously reported — at a price of $0.15 per unit.
- Each Unit comprises one common share of the Corporation and one share purchase warrant.
- Each warrant entitles the holder to purchase one additional common share at an exercise price of $0.20 per share, valid for a period of 24 months from issuance.
All other terms of the financing remain unchanged.
This correction ensures transparency for current and prospective investors and reflects Devonian’s commitment to accurate financial disclosure. Importantly, the successful closing of the financing provides additional resources to advance Thykamine™’s clinical programs and support corporate operations.
Devonian Health Group’s latest corporate update paints the picture of a company balancing immediate realities with long-term ambitions.
- Pipeline Expansion: Thykamine™ continues to advance with validated manufacturing, multiple pre-clinical programs, oral formulation development, and market validation in pediatric dermatology.
- Commercial Adjustments: While Altius Healthcare LP faces changes in its licensing portfolio, it remains a revenue-generating asset with strategic optionality.
- Financial Stability: The clarified private placement financing strengthens Devonian’s balance sheet and demonstrates investor confidence in its clinical and commercial trajectory.
Looking forward, the anticipated fall 2025 pre-clinical readouts for Thykamine™ could serve as important catalysts, potentially positioning Devonian as a leader in anti-inflammatory and anti-fibrotic innovation. Meanwhile, continued revenue contributions from Altius provide a financial bridge, and the private placement ensures adequate capital for near-term priorities.
For investors, stakeholders, and patients alike, Devonian’s message is clear: the Corporation remains steadfast in its mission to translate novel science into meaningful solutions for diseases marked by inflammation and fibrosis, while maintaining the operational discipline required for long-term growth.
