BASKING RIDGE, N.J. - Lisata Therapeutics, Inc. (NASDAQ:LSTA) and Valo Therapeutics Oy (ValoTx) have entered into a preclinical research collaboration to explore the potential of combining Lisata's certepetide with ValoTx's PeptiCRAd technology and a checkpoint inhibitor in a melanoma mouse model. This research, announced today, aims to enhance the efficacy of treatments for advanced melanoma, a form of skin cancer with high mortality rates.
Certepetide, developed by Lisata, is an investigational drug that selectively activates a tumor-specific transport mechanism, facilitating the penetration and accumulation of anti-cancer agents within tumors. This mechanism also modifies the tumor microenvironment to be less immunosuppressive. ValoTx's PeptiCRAd is an immunotherapy platform that uses viruses to activate systemic anti-tumor immunity. The collaboration will leverage ValoTx's research capabilities and Lisata's supply of certepetide.
Dr. Kristen K. Buck of Lisata expressed optimism that the combination of these therapies could lead to better patient outcomes by overcoming challenges such as resistance and recurrence in melanoma treatment. Dr. Sari Pesonen of ValoTx echoed this sentiment, highlighting the potential of the partnership to develop more effective cancer treatments.
Melanoma accounts for roughly 58,000 global deaths annually, and current treatments have an overall response rate between 35-60%. Despite advancements, there is a significant need for more effective therapies, especially for advanced or metastatic disease.
Certepetide has received Fast Track and Orphan Drug Designations in the U.S. and E.U. for various cancers, including pancreatic cancer and glioma. It has shown favorable safety and tolerability in clinical trials.
The collaboration between Lisata and ValoTx aims to translate preclinical findings into therapies that could change the treatment landscape for cancer patients. The results of this research could impact the development of treatments for melanoma and potentially other solid tumors.
This announcement is based on a press release statement and reflects the ongoing efforts of pharmaceutical companies to address the unmet needs in cancer treatment through innovative research collaborations.
In other recent news, Lisata Therapeutics has made significant strides in the treatment of cholangiocarcinoma. The company's principal drug, certepetide, is undergoing Phase 2a BOLSTER clinical trials. The US FDA has granted Orphan Drug Designation to certepetide, reflecting its potential to treat this rare form of cancer. The company also reported a net loss of $5 million for the second quarter of 2024, with earnings per share at ($0.61), surpassing both H.C. Wainwright's estimate of ($0.76) and the consensus of ($0.75). Despite the financial loss, Lisata Therapeutics maintains a positive outlook, with H.C. Wainwright reiterating its Buy rating and $15.00 stock price target. These are some of the recent developments at Lisata Therapeutics.
InvestingPro Insights
As Lisata Therapeutics (NASDAQ:LSTA) embarks on this promising collaboration with Valo Therapeutics, investors should consider some key financial insights. According to InvestingPro data, Lisata's market capitalization stands at $22.84 million, reflecting its current position in the biotech sector.
InvestingPro Tips reveal that Lisata holds more cash than debt on its balance sheet, which could provide financial flexibility for research and development initiatives like the melanoma study. This strong liquidity position is further supported by the fact that Lisata's liquid assets exceed its short-term obligations, potentially allowing the company to fund its collaborative efforts without immediate financial strain.
However, it's important to note that Lisata is not currently profitable, with a negative P/E ratio of -1.16. This is not uncommon for biotech companies in the research and development phase. The company's operating income for the last twelve months as of Q2 2024 was -$24.11 million, underscoring the substantial investments being made in potential breakthrough therapies like certepetide.
Despite these financial challenges, Lisata's stock has shown resilience, with a 1-year price total return of 26.32% as of the latest data. This positive performance may reflect investor optimism about the company's pipeline and collaborations like the one announced with ValoTx.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 7 more InvestingPro Tips available for Lisata Therapeutics, which could provide valuable context for understanding the company's financial health and market position as it pursues this potentially groundbreaking melanoma research.
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