FREEHOLD, N.J. - Channel Therapeutics Corporation (NYSE American: CHRO), a biotech firm specializing in non-opioid pain treatments, today announced positive results from pre-clinical trials of its nerve block formulations for acute pain. The company's NaV1.7 inhibitor formulations demonstrated significant improvement over the standard of care, bupivacaine, in both efficacy and duration in in vivo models. With a current market capitalization of just $3.73 million, InvestingPro data shows the company faces significant financial challenges, maintaining a weak financial health score of 1.19.
The trials included a thermal hyperalgesia test and a mechanical allodynia test on rodents, with both tests showing that Channel's formulations had a depot effect lasting more than four days, surpassing the performance of bupivacaine. In particular, three out of four formulations were notably more effective than bupivacaine and maintained statistical superiority to placebo for an extended period.
Dr. Eric Lang, Chief Medical (TASE:PMCN) Officer of Channel, expressed optimism about the results, suggesting that NaV1.7 inhibitors could be viable alternatives for managing acute and postoperative pain. Unlike current therapies that can cause temporary paralysis and hinder physical therapy, NaV1.7 inhibitors do not impact mobility, potentially offering advantages in post-surgical care.
The company's CEO, Frank Knuettel II, remarked on the significance of these findings for investors, highlighting the strong development path towards drugs with substantial market opportunities. The global post-operative pain market, where bupivacaine's Exparel generated around $538 million in 2023, is a target for Channel's new formulations, which also aim to reduce post-surgical opioid usage. According to InvestingPro analysis, the stock has experienced an 87% decline year-to-date, though current trading levels suggest fair valuation. Subscribers can access 5 additional ProTips and comprehensive financial metrics to better evaluate the company's potential.
Further studies on Channel's eye drops for treating various types of eye pain are expected to yield results by late January 2025. Channel Therapeutics continues its focus on developing non-addictive treatments for different pain types, with a particular emphasis on the NaV1.7 sodium ion-channel.
This news is based on a press release statement from Channel Therapeutics Corporation. The company cautions that these forward-looking statements are subject to risks and uncertainties, and there is no assurance that the stock price will reflect the company's value or that the stock will be a future attractive investment. InvestingPro data reveals concerning metrics, including a current ratio of 0.6 and negative earnings per share of -$2.20, highlighting the importance of thorough due diligence before making investment decisions.
In other recent news, Channel Therapeutics, formerly Chromocell Therapeutics, has completed a strategic corporate restructuring. This restructuring involved a merger with its wholly-owned subsidiary and a reincorporation in Nevada. The company's outstanding shares were automatically converted into equivalent shares of Channel Therapeutics, ensuring continuity in stock trading.
The restructuring also resulted in changes to the rights of the company's security holders, as the company transitions from Delaware to Nevada law. Channel Therapeutics has not disclosed any changes to its leadership team, indicating stability during this transition.
In addition to the restructuring, Channel Therapeutics has increased its stock repurchase plan to $750,000, a significant increase from the previous figure. The execution of these repurchases may occur through open market transactions or privately negotiated deals, depending on various factors such as stock availability and the company's financial performance. These recent developments highlight Channel Therapeutics' efforts to streamline its operations and provide potential investment opportunities.
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