Opaganib shows promise in obesity, diabetes treatment

TEL-AVIV, Israel and RALEIGH, N.C. - RedHill Biopharma Ltd. (NASDAQ:RDHL), a specialty biopharmaceutical company, today reported promising results from in vivo studies related to its drug opaganib for the treatment of obesity and Type 2 diabetes. The studies, conducted by Apogee (NASDAQ:APOG) Biotechnology Corporation, demonstrated opaganib's potential to reduce weight gain and improve glucose tolerance in models of metabolic disease.

Opaganib, an orally administered small molecule, targets sphingosine kinase-2 (SPHK2), a key enzyme in sphingolipid metabolism, which plays a significant role in various components of obesity and diabetes. The drug's ability to inhibit multiple signaling pathways could make it a versatile therapy for these disorders.

The findings from the studies suggest that opaganib may help suppress weight gain and fat deposition, as well as restore glucose tolerance in models already exhibiting obesity. This points to its potential use in both preventing and treating obesity-related conditions.

Dr. Charles D. Smith, CEO of Apogee Biotechnology, highlighted the importance of sphingolipid metabolism in diseases like obesity and its complications. Dr. Mark Levitt, Chief Scientific Officer at RedHill, noted opaganib's distinction as the first clinical drug to target three enzymes in the sphingolipid pathway.

Opaganib has also been selected for evaluation by two U.S. government countermeasures programs for its potential in treating Acute Radiation Syndrome (ARS) and Sulfur Mustard exposure. Additionally, it has shown antiviral activity against SARS-CoV-2, influenza A, and Ebola, and has been tested in various other clinical studies.

RedHill Biopharma promotes gastrointestinal drugs Talicia® and Aemcolo®, and is engaged in the development of other drugs targeting gastrointestinal and infectious diseases. Opaganib is part of its late-stage development programs, which also include treatments for COVID-19 and oncology.

The global obesity-diabetes drugs market is expected to reach approximately $100 billion by 2034, with current leading treatments including GLP-1 inhibitors and SGLT2 inhibitors. Opaganib's development could contribute to this expanding market.

This article is based on a press release statement from RedHill Biopharma Ltd.

In other recent news, RedHill Biopharma Ltd. has finalized a Global Termination Agreement that boosts its cash position by approximately $9.9 million, with the potential to access an additional $0.74 million. This agreement marks the end of credit relationships with Movantik Acquisition Co., Valinor Pharma, LLC, and HCR Redhill SPV, LLC, thereby enhancing RedHill's financial flexibility. The agreement also releases the lien against RedHill's drug Talicia®, restoring control of cash collections to the company.

RedHill Biopharma Ltd. has also initiated a Phase 2 trial for its oral antiviral drug, RHB-107, as an outpatient treatment for early COVID-19. The global trial, part of the Austere Environments Consortium for Enhanced Sepsis Outcomes' (ACESO) PROTECT platform study, aims to enroll 300 patients across multiple countries, with an expected completion by the end of 2024.

This host-directed therapy has previously shown a significant reduction in hospitalizations in a U.S. Phase 2 study. The PROTECT study is an adaptive, randomized, double-blind trial that will assess the time to sustained alleviation or resolution of COVID-19 symptoms. These are the recent developments as the company continues to explore additional treatment options for early-stage COVID-19 and enhance pandemic preparedness.

InvestingPro Insights

RedHill Biopharma Ltd. (NASDAQ:RDHL) has garnered attention with its promising in vivo study results for opaganib, potentially impacting its financial metrics and market performance. Here are some key insights based on real-time data and InvestingPro Tips:

InvestingPro Data shows that RedHill Biopharma's market capitalization stands at a modest 9.29 million USD, reflecting the company's current valuation within the biopharmaceutical industry. Despite the challenges, the company maintains a low Price/Earnings (P/E) ratio of 0.1, which may indicate that the stock is undervalued relative to its earnings potential. Additionally, the company's Gross Profit Margin for the last twelve months as of Q4 2023 was 47.03%, showcasing its ability to retain a significant portion of revenue after the cost of goods sold has been accounted for.

Among the InvestingPro Tips, it is notable that analysts anticipate sales growth in the current year for RedHill, which could be a positive signal for investors looking at the company's future revenue potential. On the flip side, RedHill is quickly burning through cash, which is an important consideration for investors when evaluating the company's financial sustainability. This tip aligns with the context of the article, as the development of new drugs like opaganib requires significant investment and resources.

For readers interested in deeper analysis, there are additional InvestingPro Tips available on RedHill Biopharma, including insights into stock price volatility, balance sheet health, and profitability forecasts. For instance, the company holds more cash than debt on its balance sheet, which can be a reassuring factor for investors concerned about financial stability. To explore these insights further, visit https://www.investing.com/pro/RDHL for a comprehensive list of 16 additional tips provided by InvestingPro.

As RedHill Biopharma continues to advance its drug development programs, these financial metrics and expert tips may serve as valuable indicators for investors monitoring the company's growth trajectory and market position in the competitive biopharmaceutical landscape.

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