OS Therapies creates subsidiary for cancer drug advances

Published 24/02/2025, 13:30
OS Therapies creates subsidiary for cancer drug advances

NEW YORK - OS Therapies, Inc. (NYSE-A: OSTX), a biotechnology firm focusing on cancer treatments, has announced the establishment of a new subsidiary, OS Drug Conjugates (OSDC). With a current market capitalization of $47.36 million and trading at $1.70 per share, the company is making strategic moves to enhance its position. The establishment of OSDC is part of the company’s strategy to leverage its patented platforms for tunable antibody drug conjugates (tADC) and tunable drug conjugates (tDC). OSDC aims to enhance shareholder value by initiating joint ventures with clinical-stage ADC therapeutics companies globally, potentially spinning off these collaborations into independent public entities, with plans to distribute stock dividends of these public joint ventures to OS Therapies shareholders.Want deeper insights? InvestingPro offers 11 additional investment tips for OSTX.

The company’s tADC and tDC technologies utilize proprietary silicon-based linkers, SiLinkers™, that enable the targeted release of therapeutic agents within the acidic environment of tumors, potentially improving efficacy and reducing harm to healthy tissues. This innovative approach to drug delivery is part of a growing market, which BCC Research projects to expand from $10.8 billion in 2023 to $47.0 billion by 2029, reflecting a compound annual growth rate (CAGR) of 28.4%. Analysts appear optimistic about the company’s potential, setting price targets ranging from $9 to $20 per share.

OS Therapies is also progressing in the clinical development of its lead immunotherapy asset, OST-HER2, which has shown promise in treating osteosarcoma. The company has completed a Phase 2b clinical trial for OST-HER2 and is preparing to submit a Biologics Licensing Application (BLA) to the US FDA in 2025. If approved, OS Therapies may be eligible for a Priority Review Voucher, which can be sold for regulatory advantages.

The formation of OSDC and the potential joint venture spinoffs represent a strategic effort by OS Therapies to capitalize on its advanced drug delivery platforms and create additional value for its shareholders. This news is based on a press release statement from OS Therapies, Inc.

In other recent news, OS Therapies has reported significant progress in its clinical and financial endeavors. The company successfully completed its Phase 2b trial for OST-HER2, an immunotherapy aimed at preventing recurrent lung metastatic osteosarcoma, showing a notable improvement in Event Free Survival rates. Following these positive results, OS Therapies is preparing for discussions with the FDA regarding potential accelerated approval, with plans to submit a Biologics Licensing Application in 2025. Additionally, the company has completed a $7.1 million private placement to fund its operations, including the finalization of the OST-HER2 trial payments and manufacturing for FDA approval.

OS Therapies has also made strategic acquisitions, obtaining clinical and intellectual property assets from Ayala, which include two Listeria-based immunotherapy candidates for lung and prostate cancer. This acquisition is expected to enhance profit margins by reducing cash milestones and royalty rates. Furthermore, OS Therapies is exploring strategic options for its tunable Antibody Drug Conjugate platform, which offers innovative drug delivery methods. Analysts from Brookline Capital Markets have been involved in the company’s financial activities, including the private placement. These developments reflect OS Therapies’ ongoing efforts to advance cancer treatment options and secure its financial and regulatory milestones.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.