Phio Pharmaceuticals signs manufacturing agreement for cancer drug

KING OF PRUSSIA, Pennsylvania - Phio Pharmaceuticals Corp. (NASDAQ:PHIO), a micro-cap biotech company with a market capitalization of $12 million and strong liquidity position, announced Friday it has entered into a drug substance development services agreement with an unnamed U.S. manufacturer for its lead compound PH-762, which targets various skin cancers. According to InvestingPro data, the company maintains more cash than debt on its balance sheet.

The agreement covers analytical and process development along with cGMP manufacturing of PH-762, an siRNA therapeutic that silences the PD-1 gene. This development represents a step forward for Phio’s intratumoral program focused on treating cutaneous carcinomas. The stock has shown strong momentum recently, with InvestingPro reporting a positive three-month return, though analysts note the company is quickly burning through cash.

"We are delighted to be partnering with an organization known for its quality and expertise in oligonucleotide chemistry sequencing," said Mr. Bitterman, Phio’s President and CEO, according to the company’s press release.

Phio is currently enrolling patients for what it expects to be the final cohort in its Phase 1b dose escalation study for cutaneous squamous cell carcinoma, Merkel cell carcinoma and melanoma. The clinical trial (NCT# 06014086) is evaluating PH-762 as a potential non-surgical treatment for skin cancers. With the next earnings report due on August 12, investors following this clinical-stage company can access additional insights through InvestingPro, which offers 12 more exclusive tips about PHIO’s financial health and market position.

The company’s INTASYL technology is designed to enhance the body’s immune cells’ ability to target cancer cells. Phio describes its approach as using gene silencing technology focused on immuno-oncology therapeutics.

The company stated in its announcement that working with a U.S.-based manufacturer provides strategic advantages to its management team, though specific details about these advantages were not elaborated upon in the press release.

In other recent news, Phio Pharmaceuticals has reported significant developments in its ongoing cancer treatment trials. The company’s Phase 1b clinical trial of PH-762, a gene silencing therapy for skin cancers, has shown promising results, with two out of three patients in the third dose cohort achieving complete pathologic response. Following these positive outcomes, the Safety Monitoring Committee recommended dose escalation to the fifth cohort, highlighting the treatment’s favorable safety profile. Analysts at H.C. Wainwright have maintained their buy rating for Phio Pharmaceuticals, citing the innovative approach of PH-762 and setting a price target of $14.00.

Additionally, Phio has announced executive changes, appointing Robert Infarinato as the new Vice President of Strategic Development. Infarinato, with extensive experience in finance and accounting, will focus on advancing the company’s INTASYL siRNA technology platform. These strategic moves are part of Phio’s efforts to explore potential applications of its siRNA portfolio. The company’s recent developments underscore its commitment to advancing cancer treatment options.

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