Conduit Pharmaceuticals progresses in autoimmune drug studies

NAPLES, Fla. and CAMBRIDGE, United Kingdom - Conduit Pharmaceuticals Inc. (NASDAQ:CDT), a micro-cap pharmaceutical company with a market capitalization of $4.04 million, has announced substantial advancements in its research and development efforts, particularly in preclinical lupus studies and the upcoming Phase IIa clinical trial for its autoimmune disease drug candidates. According to InvestingPro data, the company faces significant cash burn challenges while pursuing its ambitious development pipeline. The company’s recent progress includes confirmatory preclinical studies, clinical trial planning, formulation optimization, and intellectual property expansion.

In collaboration with Charles River Laboratories Inc., Conduit is conducting preclinical studies on glucokinase inhibitors, focusing on their application in autoimmune diseases, with an initial emphasis on lupus. The objective of these studies is to evaluate the drug’s impact on disease progression and inflammatory markers. With a current ratio of 0.12 and negative free cash flow of $10.72 million, InvestingPro analysis indicates the company’s need for careful financial management as it progresses toward Q2 2025 results, which may enhance the likelihood of success in future clinical trials.

Concurrently, Conduit is refining the protocol for a Phase II clinical trial of AZD1656, targeting systemic lupus erythematosus with nephritis and ANCA-associated vasculitis. The trial is designed as a single-center, double-blind, placebo-controlled study to gather data on the drug’s safety, tolerability, and mechanistic effects. The company will provide updates on the finalization of the trial design and study contracting.

At its Cambridge Science Park facility, Conduit has made significant strides in securing intellectual property rights for its lead asset, AZD1656. The Japan Patent Office and IP Australia have granted a composition-of-matter patent for AZD1656 Cocrystals, with approvals from the USPTO and European Patent Office anticipated early in the second quarter. Moreover, the company is actively developing new solid forms of its key assets to strengthen its IP portfolio, supporting its out-licensing and commercialization strategy.

Through a strategic agreement with Agility Life Sciences, Conduit is creating novel solid oral-dosage forms for its autoimmune pipeline assets. This includes the development of proprietary solid forms protected by composition-of-matter IP and the design of enhanced oral dosage forms to meet patient preferences and disease-specific needs.

These efforts demonstrate Conduit’s commitment to advancing its pipeline and bringing innovative treatments for autoimmune disorders to market. With a beta of 2.27, investors should note the stock’s higher volatility compared to the broader market. The company anticipates reaching critical milestones in the near term, positioning itself for growth and development. For comprehensive analysis and additional insights, including 15 more exclusive ProTips about CDT’s financial health and market position, visit InvestingPro. This update is based on a press release statement from Conduit Pharmaceuticals.

In other recent news, Conduit Pharmaceuticals Inc. has been granted an extension by Nasdaq to regain compliance with certain listing rules, allowing the company until March 31, 2025, to meet specific market value requirements. The company has also enacted a 1-for-100 reverse stock split to comply with Nasdaq’s minimum bid price requirement, effective January 24, 2025. In a strategic financial move, Conduit Pharmaceuticals fully repaid a $600,000 promissory note to Nirland Limited and converted approximately $1.7 million of a senior secured promissory note into common stock. These actions are part of the company’s broader efforts to manage its financial obligations and maintain its Nasdaq listing. Furthermore, Conduit Pharmaceuticals secured stockholder approval for the issuance of up to 135,862,596 shares of common stock upon the conversion of certain notes and warrants, aligning with Nasdaq’s listing rules. The company has expressed confidence in meeting the equity standard of stockholder’s equity greater than $2.5 million before the March deadline. Despite these proactive measures, the outcome remains uncertain as the company awaits the Nasdaq Hearing Panel’s determination. These developments reflect Conduit Pharmaceuticals’ ongoing efforts to address compliance issues and secure its financial standing.

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