OKYO Pharma advances neuropathic corneal pain drug trial

LONDON - OKYO Pharma Limited (NASDAQ: OKYO), a biopharmaceutical company with a market capitalization of $35.05 million focused on developing treatments for neuropathic corneal pain (NCP) and dry eye disease (DED), has announced the progression of its clinical trial for its drug candidate, OK-101. Trading at $1.04, the stock shows unique market behavior with a beta of -3.33, indicating movement typically opposite to broader market trends. The company expects to complete patient enrollment for its 48-patient Phase 2a trial by the end of the second quarter of 2025 and aims to release top-line data in the fourth quarter of the same year.

The ongoing trial is a double-masked, randomized, 12-week placebo-controlled study targeting NCP, a severe ocular condition currently without any FDA-approved therapy. The trial is led by Dr. Pedram Hamrah, a recognized expert in NCP and co-inventor of OK-101, at Tufts Medical (TASE:PMCN) Center.

OKYO Pharma also reported on its earlier Phase 2b trial for treating DED with OK-101, which demonstrated statistically significant benefits in both sign and symptom endpoints of the disease. The safety profile of OK-101 was favorable, with treatment emergent adverse events comparable to the placebo group. Following these results, the company plans to discuss further clinical development with the FDA.

Financially, OKYO Pharma reported assets of $2.8 million as of September 30, 2024, with cash on hand of $1.0 million. The company experienced a comprehensive loss of $3.1 million for the six months ending September 30, 2024, an improvement from the $8.5 million loss in the same period the previous year. According to InvestingPro analysis, the company faces challenges with short-term obligations exceeding liquid assets, reflected in a current ratio of 0.21, and reports an EBITDA of -$15.75 million over the last twelve months.Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis tools to make informed investment decisions.

This update on OKYO Pharma’s clinical and financial status is based on a press release statement. Despite current challenges, analysts maintain a $7.00 price target for the stock. The company continues to focus on novel treatments for NCP and inflammatory DED, with OK-101 being central to its clinical efforts.

In other recent news, OKYO Pharma Ltd has secured $1.4 million in non-dilutive funding, a significant boost for its research and development efforts, particularly for its lead program, OK-101. The drug candidate targets Neuropathic Corneal Pain (NCP), a condition currently lacking an FDA-approved therapy. The funding is especially critical considering the company’s reported EBITDA of -$15.75 million over the last year.

OKYO Pharma has also commenced a Phase 2 trial for OK-101 and recently secured a U.S. patent for the drug. Analysts from H.C. Wainwright have maintained a Buy rating for the company, suggesting potential for OK-101 as the first FDA-approved therapy for NCP. Furthermore, Executive Chairman Gabriele Cerrone increased his stake in the company, now owning a total of 9,851,570 shares.

In addition to these developments, OKYO Pharma’s CEO, Dr. Gary S. Jacob, will participate in the upcoming 4th Annual Virtual BTIG Ophthalmology Day and is scheduled to appear on Bloomberg TV, demonstrating the company’s commitment to maintaining visibility within the investment community. These recent developments underscore OKYO Pharma’s dedication to innovation and shareholder value.

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