ZURICH - NLS Pharmaceutics Ltd. (NASDAQ:NLSP), a Swiss biopharmaceutical company, has announced the publication of a patent application for a new series of molecules targeting narcolepsy and other neurodegenerative conditions.
The patent, filed by Aexon Labs with the World Intellectual Property Organization, introduces non-sulfonamide dual orexin receptor agonists (DOXA), which have shown in vitro efficacy for both sleep regulation and potential neuroprotective effects.
The molecules, licensed to NLS from Aexon Labs, are designed to activate orexin pathways that are crucial for maintaining wakefulness and regulating sleep patterns. This new approach aims to address the core pathology of narcolepsy, a disorder characterized by excessive daytime sleepiness and cataplexy, by enhancing neurotransmitter release and protecting neuronal health. Unlike many current treatments, these non-sulfonamide derivatives may reduce the risk of side effects associated with traditional medications.
The patent application also highlights the potential application of these compounds in treating neurodegenerative diseases like Parkinson's disease by targeting processes such as OX1R and a-synuclein. The multitarget compounds have a broader affinity, which could lead to more stable pharmacological profiles and better long-term outcomes.
Data on these advancements were recently presented at Sleep 2024 in Houston and the 2024 ASCP Annual Meeting in Miami. The presentations compared the new generation of compounds to selective OX2R agonists, which have limitations such as receptor desensitization and reduced efficacy at higher doses.
Narcolepsy affects 70,000-90,000 individuals with an autoimmune-mediated loss of orexin-producing neurons in the hypothalamus. The new therapeutic strategy focuses on reducing neuroinflammation and modulating immune responses, which could improve therapeutic outcomes for patients.
NLS Pharmaceutics, founded in 2015, is focused on developing innovative therapies for patients with rare and complex central nervous system disorders. Aexon Labs, led by Dr. Eric Konofal, Chief Scientific Officer of NLS, is at the forefront of research on compounds for neurodegenerative disorders.
In other recent news, NLS Pharmaceutics, a Swiss biopharmaceutical company, has made significant strides in narcolepsy treatment, demonstrated by their recent findings from a preclinical study of mazindol. The study, presented at the American Society of Clinical Psychopharmacology, showed that mazindol may have a neuroprotective effect on nocturnal activity disrupted by orexin system damage, potentially offering a new treatment avenue for narcolepsy.
However, NLS Pharmaceutics has been notified of non-compliance with Nasdaq's stockholders' equity requirement, which could potentially lead to delisting of its securities. The company has scheduled a hearing with the Nasdaq Hearings Panel to appeal this delisting determination.
In a bid to raise funds, NLS Pharmaceutics has launched a registered direct offering and concurrent private placement of securities expected to raise $1.75 million. The proceeds from this offering will be directed towards working capital and general corporate purposes. H.C. Wainwright & Co. is serving as the exclusive placement agent for this transaction.
Furthermore, NLS Pharmaceutics has acquired a worldwide exclusive license from Aexon Labs, Inc. for a platform of dual orexin receptor agonists, which are oral agents designed to potentially treat a range of neurological disorders. The licensed compounds represent a new generation of non-sulfonamide orexin receptor agonists, potentially offering a broader approach to neurologic disorder treatment.
InvestingPro Insights
As NLS Pharmaceutics Ltd. (NASDAQ:NLSP) makes strides in the biopharmaceutical sector with its innovative approach to treating narcolepsy and other neurodegenerative conditions, the company's financial health and market performance provide a backdrop to its scientific endeavors. According to real-time data from InvestingPro, NLS Pharmaceutics has a market capitalization of 5.81 million USD, reflecting its size within the biotech industry. The company's price-to-earnings (P/E) ratio stands at -0.48 for the last twelve months as of Q4 2023, indicating that it is not currently profitable. Furthermore, the company's return on assets for the same period is -218.86%, underscoring the challenges it faces in generating profit from its assets.
InvestingPro Tips reveal that NLSP stock has experienced significant volatility, with a price total return of -86.94% over the past year, highlighting the risks inherent in investing in the biotech sector. Additionally, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks. These financial challenges are compounded by the fact that NLSP does not pay a dividend to shareholders, which might be a consideration for income-focused investors. Despite these financial metrics, the company's research into DOXA compounds could represent a long-term value proposition if the molecules succeed in clinical development and commercialization.
For investors interested in a deeper analysis, InvestingPro offers additional insights and metrics on NLS Pharmaceutics. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to a wealth of InvestingPro Tips—there are eight more tips available for NLSP on the platform, providing a comprehensive view of the company's financial health and market potential.
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