ZURICH - NLS Pharmaceutics Ltd. (NASDAQ:NLSP), a Swiss biopharmaceutical company, announced on March 20, 2024, its acquisition of a worldwide exclusive license from Aexon Labs, Inc. for a platform of dual orexin receptor agonists, which are oral agents that target both orexin-1 and orexin-2 receptors. These compounds are designed to potentially treat a range of neurological disorders, including narcolepsy and various hypersomnolence disorders.
The licensed compounds represent a new generation of non-sulfonamide orexin receptor agonists, which could offer a broader approach to neurologic disorder treatment by also targeting cathepsins, sigma receptors, and catecholaminergic inhibition. This could potentially lead to advancements in neuroprotection, neuroinflammation, and neurotransmission.
NLS's Chief Scientific Officer, Dr. Eric Konofal, emphasized the transformative potential of these compounds compared to existing treatments that focus only on orexin-2 receptors, suggesting a more comprehensive treatment modality for narcolepsy that addresses both symptom management and underlying causes.
The first patent application for these orexin receptor agonists was filed at the end of 2022. This agreement marks a significant enhancement to NLS's neuroscience pipeline, particularly in sleep medicine and neurodegenerative disorders. NLS plans to immediately focus on developing these disease-modifying compounds, which have the potential to be first and best in their class.
NLS's existing pipeline includes Mazindol ER for narcolepsy, NLS-4 for idiopathic hypersomnia, long-COVID, and chronic fatigue syndrome, and NLS-11 for Kleine-Levin Syndrome and neurodegenerative diseases. The addition of over 300 compounds from Aexon is expected to bolster NLS's offerings significantly.
Subject to sufficient funding, Aexon intends to conduct Proof-of-Concept animal studies and phase 1 First-in-Human clinical development starting in early 2025. Preliminary findings are slated to be unveiled at the 2024 ASCP Annual Meeting in Miami, Florida.
Narcolepsy, a sleep disorder characterized by excessive daytime sleepiness and cataplexy, is caused by the loss of orexin-producing neurons and is associated with the HLA-DQB106:02 antigen. The new compounds may offer a novel approach to treating this disorder by acting on orexin receptors and inhibiting cathepsin H.
This news is based on a press release statement.
InvestingPro Insights
In the wake of NLS Pharmaceutics Ltd.'s recent announcement regarding their acquisition of exclusive licensing for orexin receptor agonists, investors may be closely monitoring the company's financial health and stock performance. According to InvestingPro data, NLS Pharmaceutics currently holds a market capitalization of 9.78 million USD, illustrating the scale of the company within the biopharmaceutical industry.
Despite the potential for these newly licensed compounds to revolutionize the treatment of neurological disorders, NLS Pharmaceutics has faced significant financial challenges. The company's latest metrics indicate a P/E Ratio (Adjusted) for the last twelve months as of Q2 2023 at -0.66, signifying that it has not been profitable during this period. Additionally, with an Operating Income (Adjusted) for the same period at -14.34 million USD, it's clear that the company is experiencing a substantial operating loss.
Investors should note that the stock's performance has reflected these financial difficulties, with a 1 Month Price Total Return as of the 80th day of 2024 at -38.77%, indicating a steep decline in its stock price over a short period. This aligns with two InvestingPro Tips that suggest caution: the stock has taken a big hit over the last week and has fared poorly over the last month. These tips, along with 10 additional insights, can be found on InvestingPro's platform for those looking to delve deeper into the company's stock behavior.
For investors who are considering capitalizing on the current state of NLSP's stock, it's worth noting that the company holds more cash than debt on its balance sheet, which could be a sign of financial resilience. Additionally, the stock's RSI suggests it is in oversold territory, potentially indicating an opportunity for those who believe in the company's long-term prospects. To access a comprehensive list of insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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