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NEW YORK - Hoth Therapeutics, Inc. (NASDAQ:HOTH), a biotech firm with strong financial health showing more cash than debt on its balance sheet, and Silo Pharma, Inc. (NASDAQ:SILO) announced Wednesday the formation of a 50/50 joint venture to develop an obesity treatment technology exclusively licensed from the U.S. Department of Veterans Affairs. According to InvestingPro data, HOTH has demonstrated impressive momentum with a 71% return year-to-date.
The therapeutic platform focuses on Glial Cell Line-Derived Neurotrophic Factor (GDNF), a biologic with demonstrated anti-obesity effects in preclinical models. The technology is protected under U.S. Patent No. 10,052,362 and targets conditions including non-alcoholic fatty liver disease, type 2 diabetes, and central obesity.
Under the agreement, the companies will share equal equity and governance participation in developing the VA-invented technology. The joint venture will initially focus on obesity and non-alcoholic fatty liver disease as lead indications.
"This VA-originated obesity technology has the potential to disrupt a $100B+ market and deliver life-changing impact for millions, including veterans disproportionately affected by metabolic disorders," said Robb Knie, CEO of Hoth Therapeutics, according to the press release. With a current market capitalization of $16.91 million, InvestingPro analysis suggests HOTH is currently undervalued, presenting potential opportunity in this expanding market.
Obesity affects over 40% of U.S. adults and is a leading risk factor for several serious health conditions. The companies stated that veterans are particularly impacted due to factors including chronic inflammation and PTSD-linked metabolic disruption.
The partnership aims to leverage the VA’s clinical infrastructure alongside Hoth’s regulatory expertise and Silo’s translational capabilities. The companies did not disclose financial terms or development timelines for the joint venture.
The announcement comes as obesity treatments have gained significant attention in the pharmaceutical industry, with several major companies developing competing therapies for this growing health concern. Analysts tracking HOTH maintain optimistic price targets between $4-5, significantly above current trading levels. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis to make informed investment decisions in this growing sector.
In other recent news, Hoth Therapeutics announced positive results from its Phase 2a clinical trial for HT-001, a treatment for skin toxicities caused by cancer drugs. The trial data showed that HT-001 met the primary efficacy endpoint in 100% of patients, with over 65% reporting reductions in pain and itching without requiring dose reduction or discontinuation of their cancer therapy. Additionally, Hoth Therapeutics has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the exchange. The company also reported positive preclinical safety data for its cancer treatment candidate HT-KIT, which demonstrated dose-responsive effects without observable toxicity in animal studies. Furthermore, Hoth Therapeutics secured a Japanese patent for its HT-KIT platform technology targeting mast cell diseases, providing exclusive protection until 2039. This patent covers the use of splice-switching oligonucleotides to disrupt KIT gene expression in mast cells. Hoth Therapeutics is actively seeking strategic global partners for co-development and commercialization opportunities, particularly in Asia. These developments indicate the company’s ongoing progress in advancing its clinical portfolio.
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