Quantum BioPharma reports progress in drug trials

TORONTO - Quantum BioPharma Ltd. (NASDAQ:QNTM), whose stock has surged over 117% in the past six months, has announced significant advancements in its product pipeline, including the completion of a clinical trial for its dietary supplement unbuzzd and progress in the Phase 1 trial of its Multiple Sclerosis drug Lucid-21-302. The company’s financial results for the year ended December 31, 2024, show a strengthened balance sheet and a reduction in net loss by 18%. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 3.76.

The completed clinical trial for unbuzzd showed that the product could accelerate the reduction of Blood Alcohol Concentration (BAC) and alleviate symptoms of intoxication and hangover without side effects. The supplement is currently available in the USA and is awaiting Health Canada’s approval for sale in Canada.

In addition, Quantum BioPharma has reported favorable results from the Phase 1 trial of Lucid-21-302, a new chemical entity aimed at treating Multiple Sclerosis. The drug was well-tolerated with no serious adverse events, and a safety review committee has recommended advancing to the next trial phase.

The company’s financial health has improved, with cash and cash equivalents totaling $12.1 million USD as of December 31, 2024. Operating expenses were reduced by over 32%, and net cash used in operations decreased by 36% compared to the previous year.

Quantum BioPharma has diversified its treasury by purchasing $3.5 million worth of Bitcoin and other cryptocurrencies. It has also closed multiple financing tranches totaling $2.5 million USD.

The company’s CEO, Zeeshan Saeed, expressed optimism about the potential of unbuzzd and Lucid-MS to address unmet needs in the treatment of brain disorders and alcohol health. With the anticipated launch of unbuzzd in new markets and the advancement of Lucid-MS, Quantum BioPharma is positioned for future growth. Based on InvestingPro Fair Value calculations, the stock currently trades above its estimated Fair Value, suggesting investors might want to monitor for better entry points.

This report is based on a press release statement from Quantum BioPharma Ltd.

In other recent news, Quantum BioPharma Ltd. has reported several significant developments. The company announced that Celly Nutrition Corporation, in which Quantum holds a 25.71% stake, is moving towards an initial public offering (IPO) on a major U.S. exchange with plans to raise up to $10 million. Additionally, Quantum BioPharma has expanded its cryptocurrency investments by purchasing an additional $1 million in Bitcoin and other digital currencies, doubling its total cryptocurrency holdings to $2 million. This move aligns with its strategy to diversify its portfolio and hedge against currency fluctuations.

Quantum BioPharma has also appointed Terry Lynch to its board of directors, succeeding Dr. Sanjiv Chopra. Lynch brings significant experience in fundraising and market dynamics, which the company believes will be beneficial. Furthermore, Quantum BioPharma has begun trading on the Upstream platform, a global securities trading app, aiming to expand its international investor base. This dual listing is intended to enhance liquidity and shareholder value by providing access to a broader market.

The company continues to focus on developing treatments for neurodegenerative and metabolic disorders and maintains strategic investments through its subsidiary, FSD Strategic Investments Inc. These developments reflect Quantum BioPharma’s ongoing efforts to diversify its investments and expand its market presence.

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