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NEWPORT BEACH, Calif. - Northstrive Biosciences Inc., a subsidiary of PMGC Holdings Inc. (NASDAQ:ELAB), a micro-cap biotech company currently valued at $2.82 million, has announced a partnership with Yuva Biosciences Inc. to discover and develop pharmaceutical treatments targeting obesity, type 2 diabetes, and other cardiometabolic conditions. According to InvestingPro data, ELAB trades at a price-to-book ratio of 0.38, suggesting potential undervaluation despite recent market challenges. The collaboration will utilize Yuva Biosciences' MitoNova, an artificial intelligence (AI)-powered platform focused on mitochondrial science.
The agreement, announced today, outlines a multi-phase AI Development Program. Yuva Biosciences will employ its MitoNova platform to identify small molecule drug candidates that could improve mitochondrial health, a key factor in cardiometabolic function and aging. These candidates will undergo laboratory validation, including biological activity testing on custom assays. While ELAB maintains a healthy current ratio of 3.36, InvestingPro analysis indicates the company is rapidly burning through cash, a common challenge in early-stage biotech development.
Greg Schmergel, Co-Founder and CEO of Yuva Biosciences, highlighted the importance of mitochondrial function in age-related disorders and the potential of AI to discover compounds that promote mitochondrial health. Deniel Mero, Co-Founder of Northstrive Biosciences, expressed confidence in AI's role in guiding drug development and the expectation for the collaboration to yield novel cardiometabolic drug programs.
As part of the agreement, Yuva Biosciences will receive an upfront fee, payments upon initiation and completion of program phases, developmental milestone payments, and royalties on net sales of therapeutic products arising from the collaboration.
Northstrive Biosciences focuses on aesthetic medicines, including its lead asset EL-22, which addresses obesity by preserving muscle during weight loss treatments. PMGC Holdings, Northstrive's parent company, operates across various industries through strategic acquisitions and investments.
Yuva Biosciences, headquartered in Birmingham, Alabama, is a longevity company leveraging mitochondrial science to combat aging-related conditions.
The press release also contains forward-looking statements regarding the collaboration's potential outcomes, emphasizing that these are not guarantees of future performance but are based on current expectations.
This partnership marks a significant step in the use of AI and mitochondrial science to address cardiometabolic diseases, with potential implications for the treatment of obesity and type 2 diabetes. InvestingPro reveals ELAB's overall financial health score is currently rated as WEAK, with 15 additional ProTips available to subscribers, offering crucial insights for investors monitoring this emerging biotech partnership. The information in this article is based on a press release statement and InvestingPro data.
In other recent news, PMGC Holdings Inc. has announced a registered direct offering of its common stock, expected to generate approximately $1.48 million in gross proceeds. This move involves the sale of 294,450 shares at $5.04 each, with Univest Securities, LLC acting as the sole placement agent. In another development, PMGC Holdings has executed a modest stock repurchase, buying back a small number of shares from two shareholders, totaling around $52. The company has indicated that further repurchases may occur based on market conditions, though these are not part of a formal program.
Additionally, PMGC Holdings has declared a 1-for-7 reverse stock split to comply with Nasdaq's minimum bid price requirement, effective March 10, 2025. This action aims to ensure the company's continued listing on The Nasdaq Capital Market. Meanwhile, Northstrive Biosciences Inc., a subsidiary of PMGC Holdings, has scheduled a pre-IND meeting with the FDA to discuss the development of EL-22, a treatment for obesity. This meeting represents a significant step towards initiating clinical trials for the potential breakthrough therapy. These developments reflect PMGC Holdings' ongoing efforts to manage its capital structure and advance its business interests.
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