CARLSBAD, CA - Palisade Bio, Inc. (NASDAQ:PALI), a biopharmaceutical company, revealed the successful completion of a study indicating the potential of its drug candidate PALI-2108 for treating Ulcerative Colitis (UC). The study focused on the drug's ability to inhibit TNF-α production, a pro-inflammatory cytokine, in a whole blood assay.
PALI-2108, an orally administered colon-specific phosphodiesterase-4 (PDE4) inhibitor prodrug, is being developed to target UC, an inflammatory bowel disease. According to Palisade Bio's Chief Medical Officer, Dr. Mitch Jones, the data from the study supports the drug's "robust anti-inflammatory potential."
The study included whole blood samples from 14 healthy adults and measured the inhibitory concentration (IC50) of TNF-α production. PALI-2108 demonstrated a mean IC50 of 0.022 µM, which was significantly lower than that of the approved PDE4 inhibitor, apremilast, which had an IC50 of 0.41 µM.
CEO JD (NASDAQ:JD) Finley expressed confidence in the operational execution leading to the initiation of a Phase 1 human clinical study for PALI-2108 later this year.
Palisade Bio's focus remains on developing therapies for autoimmune, inflammatory, and fibrotic diseases. The company's collaboration with Paraza Pharma, Inc., based in Montreal, QC, has been instrumental in progressing their research initiatives.
The company's forward-looking statements indicate a commitment to advancing their research and improving patient outcomes for those suffering from UC and other inflammatory conditions. However, as with any biopharmaceutical development, these statements are subject to risks and uncertainties that could affect the actual results and timing of events.
Investors are reminded that this information is based on a press release statement from Palisade Bio. The company is preparing to move forward with clinical trials, aiming to address the needs of UC patients with their novel therapeutic approach.
InvestingPro Insights
As Palisade Bio, Inc. (NASDAQ:PALI) advances its drug candidate PALI-2108 for treating Ulcerative Colitis, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Palisade Bio has a market capitalization of 5.13M USD, reflecting the current valuation of the company in the market. Despite the small size of the company, it's noteworthy that Palisade Bio holds more cash than debt on its balance sheet, providing some financial stability as it moves towards clinical trials.
The company's Price / Book ratio, as of the last twelve months ending in Q4 2023, stands at 0.45, suggesting that the stock may be undervalued compared to the company's book value. This could be of interest to value investors looking for potential opportunities. Additionally, the company's gross profit margin has been reported at 100%, indicating that it was able to convert all of its revenue into gross profit over the same period, though this figure should be considered in conjunction with other financial metrics, given the company's operating income margin of -5138.0%, signaling significant operating expenses relative to revenue.
InvestingPro Tips highlight that analysts do not anticipate the company will be profitable this year and are quickly burning through cash, which are important considerations for potential investors. Moreover, the price of PALI shares has fallen significantly over the last year, with a 1 Year Price Total Return of -75.78%, underscoring the high-risk nature of investing in biopharmaceutical companies in their early stages of drug development.
For those looking to delve deeper into Palisade Bio’s financials and market performance, InvestingPro offers additional tips that could further inform investment decisions. With a total of 11 tips available, including insights on sales growth and liquidity, investors can explore these by visiting https://www.investing.com/pro/PALI. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more in-depth analysis and data.
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