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NEW YORK - Klotho Neurosciences, Inc. (NASDAQ:KLTO), a $63 million market cap biotech company whose stock has surged over 147% year-to-date, announced Tuesday a partnership with AAVnerGene Inc. to manufacture its gene therapy candidates for neurological diseases. According to InvestingPro data, the company’s shares have shown significant volatility, currently trading at $1.15, well below their 52-week high of $3.91.
The collaboration aims to utilize AAVnerGene’s proprietary technologies in adeno-associated virus (AAV) manufacturing and tissue-targeted delivery for Klotho’s pipeline of therapies targeting Alzheimer’s, Parkinson’s, ALS, and aging-related conditions. This strategic move comes as InvestingPro analysis shows the company operating with moderate debt levels and facing challenges with weak gross profit margins.
"AAVnerGene’s platform technologies will catapult our product candidates into the clinic at a faster pace, at a lower cost, with higher efficacy and purity compared to current AAV manufacturing processes," said Dr. Joseph Sinkule, CEO of Klotho Neurosciences, in the press release.
The partnership will focus on manufacturing KLTO-101 for Alzheimer’s and Parkinson’s diseases, KLTO-202 for ALS and other motor neuron diseases, and KLTO-303 for treatment of aging-related pathologies.
AAVnerGene’s technology includes the AAVone system, designed to reduce manufacturing costs, and the ATHENA platform for developing tissue-targeting AAVs that may require lower doses, potentially reducing toxicity concerns.
Dr. Daozhan Yu, Founder and CEO of AAVnerGene, noted that AAV gene therapy faces challenges related to high drug prices and dose-related toxicity, issues their technology aims to address.
Klotho Neurosciences is developing therapies using a protein derived from the human Klotho gene, which has been associated with anti-aging properties. The company’s approach involves delivering this gene to produce the Klotho protein in targeted tissues affected by neurological and neuromuscular diseases.
Financial terms of the partnership were not disclosed in the announcement. For investors seeking deeper insights into KLTO’s financial health and growth prospects, InvestingPro offers 11 additional exclusive tips and comprehensive financial metrics, including detailed profitability analysis and growth indicators.
In other recent news, Klotho Neurosciences, Inc. has made several notable announcements. The company successfully regained compliance with NASDAQ’s continued listing requirements, meeting both the minimum bid price and stockholders’ equity thresholds. Additionally, Klotho received Orphan Drug Designation from the FDA for its ALS treatment, KLTO-202, which offers benefits such as tax credits and market exclusivity. In financial developments, the company raised over $11 million through the exercise of existing warrants, with Chardan Capital Markets acting as the exclusive financial advisor. Klotho also amended the terms of its April 2022 Public Warrant, temporarily reducing the exercise price to incentivize warrant holders. Furthermore, the company terminated its Share Exchange Agreement with SkyBell Technologies, avoiding significant dilution for existing shareholders. These recent developments highlight Klotho’s strategic moves in both financial and operational aspects.
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