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VERO BEACH, Fla. - Processa Pharmaceuticals, Inc. (NASDAQ:PCSA), a clinical-stage biopharmaceutical company with a market capitalization of $9.16 million focused on developing cancer therapies, announced Thursday it has secured a strategic investment and is evaluating cryptocurrency treasury strategies as part of its financial planning. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt.
The company is considering blockchain-based assets as a potential avenue to diversify its capital base and enhance financial flexibility while supporting its clinical development programs. According to a company press release, this approach could potentially reduce shareholder dilution and provide access to additional funding sources. Financial metrics from InvestingPro show the company maintains a strong current ratio of 2.93, indicating sufficient liquid assets to meet short-term obligations, though the platform notes the company is quickly burning through cash.
"We continue to deliver on the operational commitments, seeking meaningful therapies for patients, while exploring innovative financial strategies that can support optimal outcomes for Processa’s shareholders and stakeholders," said George Ng, CEO of Processa.
The company has engaged LifeSci Capital, LLC as an advisor for implementing its cryptocurrency treasury strategy. Processa emphasized that any cryptocurrency initiatives would comply with applicable regulatory standards.
Processa describes itself as a developer of "Next Generation Cancer" therapies that modify existing FDA-approved oncology treatments to improve their safety and efficacy profiles. The company’s approach focuses on altering the metabolism and distribution of these drugs while maintaining their cancer-fighting mechanisms.
No specific details were provided about the size of the strategic investment secured or which cryptocurrencies the company is considering for its treasury strategy. The company’s next earnings report is scheduled for August 11, just 4 days away, where investors expect more details about these initiatives. InvestingPro subscribers have access to 13 additional investment tips and comprehensive financial analysis for PCSA.
In other recent news, Processa Pharmaceuticals has announced the reconvening of its Annual Shareholder Meeting after securing enough proxy votes to establish a quorum. This meeting is scheduled to take place in Hanover, Maryland, on July 18. Additionally, Processa Pharmaceuticals has signed a licensing agreement with Intact Therapeutics for PCS12852, a drug targeting gastroparesis and other gastrointestinal disorders. The agreement could potentially bring in significant financial gains for Processa, including a $2.5 million option exercise fee and up to $432.5 million in milestone payments.
In analyst updates, H.C. Wainwright has maintained a Buy rating for Processa Pharmaceuticals but lowered the price target from $6.00 to $2.00, citing dilution from recent equity financing. The firm remains optimistic about the company’s strategic focus on its lead oncology asset, NGC-Cap, and an upcoming Phase 3 study for PCS499 in rare kidney diseases. These developments come as Processa continues to explore strategic flexibility for capital raising and partnerships. The company is also establishing a dedicated subsidiary to manage PCS499, enhancing its potential for future growth.
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