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TEL AVIV - SciSparc Ltd. (NASDAQ:SPRC), a clinical-stage pharmaceutical company focused on central nervous system disorders with a market capitalization of $6.2 million and strong liquidity position, announced Thursday the launch of an initiative to advance 3D protein modeling using quantum computing technology. According to InvestingPro data, the company maintains more cash than debt on its balance sheet and boasts a healthy current ratio of 5.36x.
The company’s board of directors approved the initiative on September 16, which aims to improve drug discovery by enhancing the accuracy of predicting protein structures and their interactions with ligands. While the stock has faced significant headwinds, declining nearly 50% year-to-date, analysts remain optimistic, projecting sales growth of 17% for the current year. Get more detailed insights and 10+ additional ProTips with InvestingPro.
The program will utilize quantum computing to potentially overcome limitations of traditional computing methods in modeling the dynamic nature of proteins. According to the company, quantum computing could simulate protein energy dynamics with greater precision than classical computing approaches.
SciSparc plans to develop quantum-enabled tools to predict protein folding, model protein-ligand interactions, and accelerate drug discovery through more precise predictions. The company will establish a dedicated research team and collaborate with experts in quantum computing and structural biology.
Initial efforts will focus on refining quantum algorithms to simulate protein dynamics and binding interactions, targeting applications in neurological and rare diseases where SciSparc has existing expertise.
The company expects to incorporate a new wholly owned Israeli subsidiary to operate the initiative, according to the press release statement.
SciSparc’s current drug development portfolio includes SCI-110 for Tourette syndrome and Alzheimer’s disease, and SCI-210 for autism spectrum disorder and status epilepticus. The company also owns a controlling interest in a subsidiary selling hemp seed oil-based products on Amazon.com through its majority-owned subsidiary Neurothera Labs Inc. Despite current operating losses, InvestingPro analysis indicates analysts expect the company to achieve profitability this year, with a projected EPS of $60.86.
In other recent news, SciSparc Ltd. announced a definitive agreement to acquire a controlling interest in Miza III Ventures Inc. The transaction involves SciSparc transferring its clinical-stage pharmaceutical portfolio and its 51% equity stake in SciSparc Nutraceuticals to Miza, valued at approximately $11.6 million. In return, SciSparc will receive 63,300,000 common shares of Miza and up to 48,000,000 contingent rights based on specific milestones. Additionally, SciSparc revealed a framework agreement with AutoMax Motors Ltd. to terminate their previously planned merger, including repayment terms for outstanding loans. Furthermore, N2OFF, Inc. shareholders approved the acquisition of MitoCareX Bio Ltd., a majority-owned subsidiary of SciSparc. This acquisition will make MitoCareX a wholly owned subsidiary of N2OFF, with SciSparc receiving $700,000 and N2OFF common stock in exchange for its shares. These developments highlight SciSparc’s ongoing strategic adjustments in its business operations.
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