SARASOTA, FL - Silo Pharma, Inc. (NASDAQ:SILO), a biopharmaceutical company, announced today that it has exercised its option to license a novel Alzheimer's disease therapeutic, SPC-14, from Columbia University. This move, part of a sponsored research and option agreement from 2021, will give Silo exclusive rights to develop, manufacture, and commercialize the treatment globally once the agreement is finalized, expected in the first half of 2024.
CEO Eric Weisblum commented on the potential impact of SPC-14, highlighting the inadequacy of current treatments for Alzheimer's disease (AD) and the promising cognitive improvement and stress reduction seen in preclinical studies. The global Alzheimer’s disease therapeutics market is projected to surpass $30.8 billion by 2033, fueled by an aging population and advances in neurological research.
SPC-14 targets the NDMAR glutamate receptor and the 5HT4 serotonin type 4 receptor, aiming to treat cognitive and neuropsychiatric symptoms of Alzheimer's. In preclinical trials using small animal models, the compound demonstrated effectiveness in reducing stress-related behaviors such as learned helplessness and anxiety.
Silo Pharma specializes in developing therapies for psychiatric disorders, chronic pain, and central nervous system diseases. Its portfolio includes an intranasal treatment for PTSD and anxiety disorders (SPC-15) and a time-release implant for fibromyalgia and chronic pain (SP-26). The company is also working on SPU-16, a compound targeting multiple sclerosis.
The development of SPC-14 is anticipated to fall under the FDA’s 505(b)(2) regulatory pathway, which allows for a potentially faster approval process by relying on data from previously approved drugs.
The press release statement indicates that while the company is optimistic about the future of SPC-14, it acknowledges the inherent risks and uncertainties in drug development, making no guarantees of future performance or clinical outcomes.
InvestingPro Insights
As Silo Pharma, Inc. (NASDAQ:SILO) ventures forward with its novel Alzheimer's disease therapeutic, SPC-14, the company's financial health and market performance provide a backdrop for its operational decisions. An InvestingPro Tip that stands out for SILO is its impressive gross profit margin, which at 91.9% for the last twelve months as of Q4 2023, indicates a strong ability to retain earnings at the gross level. This metric is particularly relevant given the high costs associated with drug development and the potential for revenue once SPC-14 reaches the market.
Another noteworthy InvestingPro Tip is the company's high shareholder yield, a sign of its commitment to returning value to its investors, which could be seen as a positive indicator for potential and existing shareholders. This is especially relevant in the biopharmaceutical industry, where investment in research and development is critical and often precedes profitability.
Key InvestingPro Data points to consider for SILO include a market capitalization of $6.09M USD, which reflects the company's current valuation in the market. Additionally, the stock has experienced a strong return over the last three months, with a 37.33% price total return, suggesting a positive market sentiment in the short term. Lastly, it's important to note that SILO's price is currently at 67.54% of its 52-week high, indicating room for potential growth if the company's strategic initiatives, including the development of SPC-14, prove successful.
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