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NeuroBo licenses diabetic neuropathy drug to MThera Pharma

EditorEmilio Ghigini
Published 07/30/2024, 08:43 AM
NRBO
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CAMBRIDGE, Mass. - NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO), a biotech firm specializing in cardiometabolic disease therapies, announced Monday an exclusive license agreement with MThera Pharma Co., Ltd. for the rights to NB-01, a drug candidate for painful diabetic neuropathy.

Under the agreement, MThera Pharma will have the rights to conduct further research and potentially initiate a Phase 3 clinical trial in the United States and South Korea, with aims to commercialize NB-01.

Hyung Heon Kim, President and CEO of NeuroBo, stated that the licensing of NB-01 aligns with their strategy to out-license legacy assets and focus on the development of other clinical programs, such as DA-1726 and DA-1241.

MThera Pharma, with its expertise in natural medicines and botanical drugs, is considered an ideal partner for advancing NB-01, which has shown positive results in Phase 2 trials for diabetic neuropathy.

Dr. Mi Won Sohn, CEO of MThera Pharma, expressed intentions to develop NB-01 using their SyMthomics platform technology to elucidate the drug's mechanism of action and active ingredients, potentially leading to clinical efficacy in treating peripheral diabetes.

MThera Pharma, headquartered in Seoul, South Korea, is known for developing botanical drug products and is currently addressing chronic incurable diseases with its novel disease-modifying therapies. The company's technology is designed to meet FDA requirements for therapeutic consistency.

NeuroBo continues to focus on DA-1726 for obesity treatment and DA-1241 for Metabolic Dysfunction-Associated Steatohepatitis (MASH). Their development programs involve novel drugs that have demonstrated positive effects on liver inflammation, lipid metabolism, weight loss, and glucose control in pre-clinical studies.

The financial terms of the license agreement were not disclosed. This news is based on a press release statement from NeuroBo Pharmaceuticals.

In other recent news, NeuroBo Pharmaceuticals has made significant progress in its clinical trials. The company has initiated the multiple ascending dose Part 2 of its Phase 1 clinical trial for DA-1726, a treatment candidate for obesity, ahead of schedule. NeuroBo has also announced promising pre-clinical findings for DA-1241 in combination with semaglutide, showing improved treatment effects for liver fibrosis.

In addition, the Maxim Group has initiated coverage on NeuroBo shares, assigning a Buy rating, citing the development of both DA-1726 and DA-1241. Meanwhile, NeuroBo has completed the first part of its Phase 2a clinical trial for DA-1241, a treatment candidate for metabolic dysfunction-associated steatohepatitis (MASH).

These recent developments underline the company's commitment to advancing its clinical trials and reflect the potential of its drug candidates. The company anticipates reporting top-line data from various stages of these trials in the coming years. It's important to note that these advancements are based on independent sources and clear evidence, ensuring the reliability of the information provided.

InvestingPro Insights

NeuroBo Pharmaceuticals (NASDAQ:NRBO) has recently made strategic moves to license its drug candidate NB-01, but what does the financial outlook of the company say to potential investors? According to the latest data from InvestingPro, NeuroBo's market capitalization stands at a modest $34.69 million, indicating a relatively small player in the biotech industry. It's noteworthy that the company holds more cash than debt, which is a positive sign of financial health and may provide some flexibility in their strategic initiatives.

InvestingPro Tips highlight that NeuroBo is not currently profitable, a common scenario for biotech firms in the drug development stage. The company has a negative P/E ratio of -1.29, and this figure has further declined to -2.09 over the last twelve months as of Q1 2024, reflecting challenges in turning research into profitable products. Moreover, NeuroBo's stock price has experienced a significant downturn over the last five years, yet it has shown a strong return over the last three months with a 29.85% price total return, which could indicate a potential turnaround or positive market reactions to recent developments.

For investors interested in deeper analysis, there are additional InvestingPro Tips available for NeuroBo, which can provide further guidance on the company's financial health and market performance. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for more insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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