Palisade Bio secures Canadian tax credit for drug study

CARLSBAD - Palisade Bio, Inc. (NASDAQ: PALI), a clinical-stage biopharmaceutical company, has announced the receipt of 1.39 million Canadian dollars in Scientific Research and Experimental Development (SR&ED) tax credits from Canada. The funding is intended to reimburse the company for prior pre-clinical costs associated with PALI-2108, a drug under joint development with Giiant Pharma, Inc.

The SR&ED tax credits are a result of pre-clinical studies conducted in Montreal as part of the co-development agreement between Palisade Bio and Giiant. According to JD (NASDAQ:JD) Finley, CEO of Palisade Bio, this non-dilutive funding supports the company’s efforts to potentially deliver new solutions for patients with autoimmune, inflammatory, and fibrotic diseases.

Palisade Bio is currently engaged in a Phase 1a/b clinical study of PALI-2108, which is a single-center, double-blind, placebo-controlled trial focusing on the safety, tolerability, pharmacokinetics, and pharmacodynamics of the drug in healthy volunteers. An open-label study is also being conducted with a patient cohort suffering from ulcerative colitis (UC). Topline data from the ongoing study is expected to be reported in the first half of 2025.

The company’s clinical trial information is available on clinicaltrials.gov under the identifier NCT06663605.

Palisade Bio aims to transform the treatment landscape for patients with serious medical conditions by developing targeted novel therapeutics. The company has cautioned investors that its success is heavily dependent on the progression and regulatory approval of PALI-2108, which is still in the early stages of clinical development. Furthermore, Palisade Bio has acknowledged the need for additional funding to continue the development of PALI-2108 and has highlighted the risks and uncertainties associated with its clinical outcomes and market potential. InvestingPro subscribers have access to 15+ additional investment tips and comprehensive financial metrics to better assess the company’s risk profile and potential. Get exclusive insights into Palisade Bio’s financial health, valuation metrics, and growth prospects with InvestingPro.

This announcement is based on a press release statement from Palisade Bio, Inc. Investors are advised to consider the risks and uncertainties detailed in the company’s SEC filings when evaluating the company’s prospects.

In other recent news, Palisade Bio announced the completion of the Single Ascending Dose stage of its Phase 1a/b study for PALI-2108, a drug candidate aimed at treating Ulcerative Colitis. The preliminary data revealed that the drug was well-tolerated across various dosages, with no serious adverse events reported. The study aims to evaluate the safety, tolerability, and pharmacokinetics of PALI-2108, which has shown delayed-release and extended-release characteristics. These features are crucial for maintaining high local concentrations in the colon, a key factor for effective UC treatment. As the study moves forward, the company plans to assess repeated dosing in the Multiple Ascending Dose cohorts, including both healthy volunteers and UC patients. Palisade Bio anticipates reporting topline data in the first half of 2025. The development of PALI-2108 is part of the company’s broader efforts to innovate treatments for autoimmune, inflammatory, and fibrotic diseases. This announcement underscores Palisade Bio’s ongoing commitment to advancing novel therapeutics in this field.

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