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CALABASAS, Calif. - NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI), a clinical-stage biotech company with a market capitalization of $94 million, has secured two National Institutes of Health (NIH) Small Business Technology Transfer (STTR) grants totaling $2.5 million to advance development of its cancer therapeutic compound NEO212, the company announced Thursday. According to InvestingPro data, the company’s stock has declined nearly 60% over the past six months, reflecting the challenging environment for early-stage biotech firms.
The biotechnology firm, which focuses on central nervous system malignancies, received a $400,000 Phase 1 grant to support preclinical studies of NEO212 in acute myelogenous leukemia and a $2.1 million Phase 2 grant for expanding the drug’s clinical development into newly diagnosed gliomas. InvestingPro analysis reveals the company’s current ratio of 0.41 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.
The funding comes as NeOnc approaches the completion of its Phase 1 clinical trial for NEO212, positioning the company to initiate Phase 2 trials.
Dr. Thomas Chen, CEO and Chief Medical Officer of NeOnc, will serve as Principal Investigator for both grants, collaborating with researchers at the University of Southern California. The grants are structured with 40% of funding going to NeOnc and 60% to USC-based research collaborators.
"Securing $2.5 million in competitive NIH grants during one of the most uncertain federal funding periods reaffirms the scientific and clinical promise of NEO212," said Dr. Chen in the press release.
NeOnc’s NEO212 therapeutic is advancing under FDA Fast-Track and Investigational New Drug status. The company has licensed a patent portfolio from the University of Southern California for multiple uses, including oncological and neurological conditions.
The clinical-stage biotechnology company focuses on developing therapies designed to overcome challenges in crossing the blood-brain barrier, with patent protections extending to 2038. With revenue of just $0.08 million in the last twelve months, NeOnc’s current valuation suggests it may be trading above its Fair Value. Discover more insights and 6 additional key ProTips for NTHI with InvestingPro.
In other recent news, NeOnc Technologies Holdings Inc. has been active with significant strategic and acquisition endeavors. The company announced a $50 million strategic partnership with Quazar Investment, which includes Quazar acquiring 1.4 million shares at $25 per share. This agreement, approved by NeOnc’s Board, designates $35 million for shares held at Morgan Stanley and $15 million for Phase 2B clinical trials and infrastructure development in the UAE and MENA region. Additionally, NeOnc Technologies has entered into a definitive agreement to acquire intellectual property assets related to 3D bioprinting, artificial intelligence, and quantum modeling technologies for $3.5 million. This acquisition involves all equity interests in a new Delaware entity owned by Dr. Ishwar K. Puri and Beth R. Levinson, including U.S. Patent No. 11,788,057 B2. The patent was secured through a transfer agreement with McMaster University. These developments highlight NeOnc’s commitment to expanding its technological capabilities and advancing its clinical research efforts.
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