Bullish indicating open at $55-$60, IPO prices at $37
SANTA ANA, Calif. - NKGen Biotech, Inc. (OTC:NKGN), a clinical-stage biotechnology company with a market capitalization of $19.4 million and currently rated as undervalued according to InvestingPro analysis, has formed a strategic partnership with Tokyo-based HekaBio K.K. to accelerate the development of troculeucel, NKGen’s autologous natural killer (NK) cell therapy, in Japan.
Under the partnership, HekaBio will lead clinical trials and regulatory activities with Japan’s Pharmaceuticals and Medical Devices Agency for troculeucel in neurodegenerative diseases, including Alzheimer’s and Parkinson’s. The companies aim to begin dosing Japanese patients within the next 12 months. This strategic move comes as NKGen faces financial challenges, with InvestingPro data showing a current ratio of 0.02 and short-term obligations exceeding liquid assets.
The collaboration follows HekaBio’s recent investment in NKGen’s common equity. The partnership seeks to leverage Japan’s regulatory environment for regenerative medicine, which offers multiple paths for expedited commercialization of cell therapies.
"Japan has always had an advanced progressive health care system where great attention has been placed on the use of novel autologous cell therapies," said Paul Y. Song, Chairman and CEO of NKGen, in a press release statement.
Troculeucel is an autologous, non-genetically modified cell therapy that could benefit from Japan’s regenerative medicine regulations allowing faster patient access compared to other major markets.
Rob Claar, CEO of HekaBio, noted that dementia and other neurodegenerative diseases present significant challenges in Japan due to its aging population.
NKGen is developing troculeucel, previously known as SNK01, for treating neurodegenerative disorders and various cancers. The therapy recently received its International Nonproprietary Name from the World Health Organization.
The partnership aims to satisfy regulatory requirements, secure local manufacturing, and develop a commercial strategy for the Japanese market, which is the world’s third-largest healthcare market. Despite the stock’s 72% decline over the past year and weak financial health score of 1.46 according to InvestingPro, the company’s strategic positioning in the Japanese market could present opportunities. Discover more insights and 5 additional ProTips about NKGN with an InvestingPro subscription.
In other recent news, NKGen Biotech, Inc. has administered the first dose of troculeucel, an expanded autologous natural killer cell therapy, to a patient with mild-stage Alzheimer’s disease. This development marks a potential expansion into treating mild Alzheimer’s for patients unresponsive to existing therapies. The therapy is being explored in collaboration with Dr. Anita Fletcher from AdventHealth Neuroscience Institute. In addition to its clinical advancements, NKGen Biotech has also secured amended loan terms with East West Bank. The amendment extends the maturity date of a $5 million loan to January 15, 2027, with an increased interest rate of 10% per annum. The company will place $250,000 in a restricted account for interest payments and has outlined a new amortization schedule. This financial restructuring aims to secure NKGen Biotech’s operational funding for the near future. Investors can refer to the SEC filing for detailed information on the loan agreement.
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