Quantum BioPharma advances MS drug towards Phase 2 trial

TORONTO - Quantum BioPharma Ltd. (NASDAQ: QNTM), a small-cap biotechnology company with a market capitalization of $36.1 million, announced today that it has entered into an agreement to prepare an Investigational New Drug (IND) application package for its experimental multiple sclerosis (MS) treatment, Lucid-21-302. The IND application, targeted for submission to the US Food and Drug Administration (FDA) in the fourth quarter of 2025, is a crucial step towards initiating a Phase 2 clinical trial. According to InvestingPro data, the company’s stock has shown remarkable momentum, with a 233% return year-to-date.

Lucid-21-302, also known as Lucid-MS, is a patented New Chemical Entity (NCE) designed to prevent demyelination, a key pathological feature of MS. Quantum BioPharma’s CEO, Zeeshan Saeed, expressed optimism about the agreement, which propels the company closer to testing its first-in-class neuroprotective compound in MS patients. The company’s development efforts come amid challenging financial metrics, with InvestingPro data showing negative EBITDA of $16.78 million in the last twelve months.

The development of Lucid-21-302 aligns with Quantum BioPharma’s broader mission to create a diverse portfolio of innovative treatments for neurodegenerative and metabolic disorders. The company, through its subsidiary Lucid Psycheceuticals Inc., focuses on research and development for neuroprotective drug candidates.

In addition to its core research activities, Quantum BioPharma has a strategic investment in Celly Nutrition Corp., from which it retains a 20.11% ownership stake and royalty payments on sales of the over-the-counter product unbuzzd™. The royalty agreement stipulates a 7% sales royalty until Quantum BioPharma receives a total of $250 million, after which the royalty rate will decrease to 3%.

This news release contains forward-looking statements regarding the company’s future plans and potential outcomes of its drug development efforts. These statements are based on current expectations and involve risks and uncertainties that may cause actual results to differ materially. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with additional financial insights and 8 more ProTips available to subscribers.

The information provided is based on a press release statement from Quantum BioPharma Ltd. and does not include any speculative or promotional content. The company’s progress towards the Phase 2 trial of Lucid-21-302 represents a significant milestone in its commitment to addressing the challenges of MS treatment.

In other recent news, Quantum BioPharma Ltd. has expanded its cryptocurrency holdings by investing an additional $1 million in Bitcoin and other digital currencies, bringing its total cryptocurrency investment to $4.5 million. This move is part of the company’s strategy to incorporate digital currencies into its financial operations. Additionally, Quantum BioPharma achieved a legal victory as the Court of Appeal for Ontario dismissed a reconsideration motion by its former CEO, Dr. Raza Bokhari, upholding earlier decisions in favor of the company.

Quantum BioPharma has also welcomed Kevin Malone as an advisor to its Board of Directors, aiming to enhance its expertise in financial matters. In partnership developments, Celly Nutrition Corporation, Quantum’s licensee, has entered agreements to expand the retail reach of its product unbuzzd™. The partnership with the Asian American Trade Associations Council (AATAC) will increase unbuzzd™’s availability across over 80,000 locations in the United States and Puerto Rico. Furthermore, Celly Nutrition has partnered with FUSION Distribution Group to launch unbuzzd™ in Puerto Rico, making it accessible through major retailers like Walmart and Costco.

Quantum BioPharma maintains a 25.71% ownership stake in Celly Nutrition and retains rights to royalty payments from unbuzzd™ sales. These recent developments underscore Quantum BioPharma’s strategic initiatives to diversify its portfolio and expand its market presence.

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