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GRI Bio receives FDA orphan drug designation for GRI-0621 in IPF

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The FDA granted orphan drug designation to GRI-0621 for idiopathic pulmonary fibrosis, a designation that could bring seven years of U.S. market exclusivity if the drug is approved.

Key facts

Company
GRI Bio, Inc. (NASDAQ: GRI)
News type
Company Updates
Primary source
GRI Bio, Inc. 8-K (2026-06-18)
Removing DNA from a microtube with a pipette. Photo: Maggie Bartlett, NHGRI, Public domain, via Wikimedia Commons. The picture shows the field, not the companies named.

GRI Bio, Inc. (NASDAQ: GRI) said in an exhibit to its Form 8-K dated June 18, 2026 that the U.S. Food and Drug Administration granted Orphan Drug Designation to GRI-0621 for the treatment of idiopathic pulmonary fibrosis, or IPF. The company describes IPF as a progressive, irreversible and ultimately fatal lung disease affecting tens of thousands of patients in the United States. The release says the disease is characterized by progressive scarring of lung tissue that leads to declining lung function and premature mortality, and that patients continue to face poor long-term outcomes despite currently approved therapies.

What the designation provides

Orphan designation is granted to therapies intended to treat rare diseases affecting fewer than 200,000 people in the United States. It is a regulatory status, not a finding that the drug works, and the company's four listed benefits are all described as potential. The release says nothing about whether the FDA has agreed to any trial design or approval path. The company lists four benefits: potential eligibility for seven years of U.S. market exclusivity upon approval, potential tax credits related to qualified clinical development expenses, a waiver of certain FDA application fees, and enhanced regulatory engagement with the FDA throughout development.

The Phase 2a study

GRI-0621 is an oral, once-daily RARβ/γ-selective agonist. It was evaluated in a randomized, double-blind, placebo-controlled Phase 2a trial in 35 patients with IPF, about 80% of whom were on background standard-of-care antifibrotics. The company said the trial met its primary, secondary and exploratory endpoints, and that continued analyses support the previously reported findings. The release names no endpoints, gives no results and reports no p-values or safety data, so the claim cannot be checked from it. A 35-patient Phase 2a study is small, and the next stage of development is not described.

The company said the designation shows how serious IPF is, and how important it is to develop differentiated therapies that target the underlying disease mechanisms. The release also says emerging evidence increasingly supports a role for immune dysfunction in driving fibrosis, which the company sees as an opening for novel approaches beyond current standards of care.

The company and its pipeline

GRI Bio describes itself as a clinical-stage biopharmaceutical company focused on inflammatory, fibrotic and autoimmune diseases. Its lead program is GRI-0621. The company is also developing a pipeline of type 2 diverse NKT agonists for systemic lupus erythematosus, and it has a library of over 500 proprietary compounds.

The company's annual report, filed January 30, 2026, lists among its risks that it has incurred significant net losses since inception, will require substantial additional capital to finance its operations, and may be forced to delay, reduce or eliminate programs if it cannot raise that capital. The same report names the company's ability to continue as a going concern and to stay listed on The Nasdaq Capital Market among its risks.

Marc Hertz, PhD, the chief executive officer, said the designation is "an important validation of our development strategy." He added that the designation "further strengthens our regulatory foundation."

Financial position

The XBRL financial data show research and development expense of $6.8 million in 2025, up from $3.8 million in 2024. The net loss was $12.0 million in 2025 and $8.2 million in 2024. Cash used in operations was $10.2 million in 2025 and $8.6 million in 2024. Year-end cash and cash equivalents were $5.0 million at the end of 2024.

What comes next

The company said the designation strengthens its ability to advance the program efficiently, and that it adds another important catalyst to its broader strategy of advancing therapies for diseases driven by immune dysregulation and fibrosis. It also said it will continue to execute on key development objectives while exploring opportunities to maximize the value of its proprietary platform. The release names no financing, partner or trial start date, and orphan status does not itself pay for any of it.

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