Can-Fite secures Australian patent for obesity treatment

RAMAT GAN, Israel - Can-Fite BioPharma (NYSE:CANF) Ltd. (NYSE American: CANF) (TASE:CANF), an Israeli biotechnology company, announced today the acceptance of a patent application by the Australian Patent Office for its drug Namodenoson, which is being developed to treat obesity and various cancers. The patent, entitled "An A3 adenosine receptor ligand for use for achieving a fat loss effect," is set to expire in 2040 and covers methods of treating obesity through oral administration of the drug.

Namodenoson, a small molecule with high affinity and selectivity to the A3 adenosine receptor (A3AR), has shown a favorable safety profile in clinical studies and is currently undergoing further evaluation in advanced liver cancer, steatotic liver disease, and a planned study for pancreatic cancer. The drug's anti-obesity application is supported by data indicating its ability to reduce fat levels and body weight in animal models.

The company's Chief Scientific Officer, Dr. Pnina Fishman, expressed optimism about the patent's potential to protect Namodenoson's use in obesity treatment, especially considering the ongoing Phase IIb study for Metabolic Dysfunction-associated Steatohepatitis (MASH), a condition prevalent in obese patients.

Can-Fite has a portfolio of patents and applications in various territories, including the US and Europe, for different clinical applications of Namodenoson. The drug has been granted Orphan Drug Designation in the US and Europe and Fast Track Designation by the FDA as a second-line treatment for hepatocellular carcinoma.

The acceptance of this patent is significant for Can-Fite amid a lucrative global obesity treatment market, which was valued at USD 12 billion in 2023. With a considerable number of MASH patients expected in Australia, the patent could provide a strategic advantage for the company.

This update is based on a press release statement from Can-Fite BioPharma Ltd. and does not include any speculative or forward-looking statements from the company.

In other recent news, Can-Fite BioPharma and its partner Vetbiolix have secured a $325 million licensing agreement following positive results from a clinical study on canine osteoarthritis. The study evaluated the efficacy of Piclidenoson, showcasing a significant improvement in clinical status and pain reduction in dogs. The agreement could yield $325 million over the next decade for Can-Fite, marking a significant development in the company's recent activities.

In addition, Can-Fite BioPharma reported a decrease in its revenues for the first half of 2024, dropping to $0.32 million from $0.39 million in the same period last year. However, the net loss improved to $3.95 million, largely due to reduced operating expenses. EF Hutton has upgraded Can-Fite BioPharma to a Buy rating, citing the potential of its pipeline drugs, Namodenoson and Piclidenoson.

Moreover, the company received a Notice of Allowance from the European Patent Office for its erectile dysfunction treatment patent related to the CF602 drug candidate. Can-Fite BioPharma's drug candidate, Namodenoson, is currently in a Phase 3 study for liver cancer and has received Orphan Drug status and Fast Track designation from the U.S. FDA. These are among the recent developments that highlight the company's ongoing commitment to drug development and clinical trials.

InvestingPro Insights

Can-Fite BioPharma's recent patent acceptance for Namodenoson in Australia comes at a critical time for the company, as reflected in its financial metrics and market performance. According to InvestingPro data, Can-Fite's revenue for the last twelve months as of Q2 2024 stands at $0.67 million, with a concerning revenue growth decline of -15.89% over the same period. This underscores the importance of the company's drug development pipeline, including Namodenoson, for future revenue prospects.

Despite the potential of Namodenoson in the obesity treatment market, InvestingPro Tips highlight that Can-Fite is "quickly burning through cash" and is "not profitable over the last twelve months." These factors emphasize the critical nature of the company's drug development success for its financial sustainability.

On a positive note, Can-Fite "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it pursues clinical trials and regulatory approvals for Namodenoson. This aligns with another InvestingPro Tip indicating that the company's "liquid assets exceed short term obligations," potentially offering a buffer for ongoing research and development expenses.

For investors considering Can-Fite's potential in the obesity treatment market, it's worth noting that the company is currently "trading at a high Price / Book multiple" of 6.39, according to InvestingPro data. This valuation may reflect market expectations for the company's drug pipeline, including Namodenoson.

InvestingPro offers additional insights, with 7 more tips available for Can-Fite BioPharma, which could provide a more comprehensive view of the company's financial health and market position as it advances its drug development programs.

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