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WASHINGTON, D.C. - 60 Degrees Pharmaceuticals (SXTP), a company specializing in infectious disease treatments, has entered into a Patent License Agreement with Yale School of Medicine and Yale School of Public Health to co-develop and commercialize tafenoquine for babesiosis treatment and prevention. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though investors should note its rapid cash burn rate in recent quarters. The collaboration is based on promising initial research into tafenoquine's effectiveness against the tick-borne disease babesiosis, which can be life-threatening, particularly in elderly and immunocompromised individuals.
The partnership aims to address the limited treatment options for patients with severe babesiosis, a disease transmitted by the same ticks that spread Lyme disease. The pharmaceutical company, along with Yale researchers, believes tafenoquine could be the first prophylactic option for the disease. Currently, there is no FDA approval for tafenoquine as a treatment or preventative measure for babesiosis.
A clinical trial sponsored by 60 Degrees Pharmaceuticals is underway to assess the safety and efficacy of tafenoquine in treating severe cases of babesiosis. This randomized, double-blind, placebo-controlled trial is being conducted at various U.S. locations, including Tufts Medical Center and Yale University. The company has shown impressive revenue growth of 168.7% in the last twelve months, though InvestingPro analysis reveals it remains unprofitable with significant R&D investments. The trial's primary endpoints are the time to sustained clinical resolution of symptoms and the time to molecular cure, with an interim analysis planned after a certain number of patients are enrolled.
Tafenoquine, under the name ARAKODA®, is already approved for malaria prophylaxis in the United States and Australia. However, it is not without contraindications and potential side effects, including risks for individuals with G6PD deficiency and a history of psychotic disorders. The drug's long half-life necessitates careful monitoring for delayed onset of adverse reactions.
60 Degrees Pharmaceuticals, founded in 2010, has previously achieved FDA approval for ARAKODA® for malaria prevention and collaborates with research institutions globally. The company's mission has been supported by the U.S. Department of Defense and private investors, including Knight Therapeutics Inc. While the stock has faced significant pressure, declining nearly 90% over the past year, InvestingPro analysis suggests the company is currently undervalued, with 13 additional ProTips available to subscribers covering aspects from financial health to growth prospects.
The information in this article is based on a press release statement from 60 Degrees Pharmaceuticals.
In other recent news, 60 Degrees Pharmaceuticals announced a 1-for-5 reverse stock split of its common stock, which will take effect on February 24, 2025. This move is intended to comply with Nasdaq's minimum bid price requirement. The reverse stock split will adjust the shares underlying equity awards, warrants, and convertible notes, but the par value and authorized number of shares will remain unchanged. Additionally, the company has revealed plans for a registered direct offering and concurrent private placement, selling over one million shares at $1.021 each. This transaction is expected to generate gross proceeds of approximately $1.043 million, with H.C. Wainwright & Co. serving as the exclusive placement agent. The funds raised are earmarked for general corporate purposes and working capital. These developments reflect 60 Degrees Pharmaceuticals' ongoing efforts to advance its portfolio, including its FDA-approved malaria prevention drug, ARAKODA®. The company has emphasized that these actions involve forward-looking statements subject to risks and uncertainties.
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