PETACH TIKVA, Israel - PolyPid Ltd. (NASDAQ:PYPD), an Israel-based biopharmaceutical company with a market capitalization of $19.5 million, has announced a new research and development collaboration with ImmunoGenesis, Inc., a U.S. clinical-stage biotechnology firm. The company's stock has declined over 38% in the past year, trading near its 52-week low. InvestingPro data reveals the company is currently facing significant cash burn challenges, with multiple financial metrics suggesting careful investor consideration is warranted. The partnership, unveiled today, is set to focus on creating novel treatments for solid tumors using PolyPid's proprietary PLEX (Polymer-Lipid Encapsulation matriX) technology in conjunction with ImmunoGenesis's STimulator of INterferon Genes (STING) agonist drug candidate.
The collaboration aims to overcome the rapid clearance challenges associated with potent STING agonists when administered intratumorally, which can limit their effectiveness in the tumor microenvironment. PolyPid's PLEX technology is designed to enable controlled and prolonged intratumoral drug delivery, which could potentially enhance the efficacy of ImmunoGenesis's anti-tumor STING agonist. According to InvestingPro analysis, the company maintains a moderate debt level with a debt-to-equity ratio of 4.64, while operating with negative EBITDA of -$23.91 million in the last twelve months.
"We are very pleased to announce this collaboration with ImmunoGenesis and leverage PolyPid’s experience with PLEX technology which enables controlled and prolonged intratumoral drug delivery," said Dikla Czaczkes Akselbrad, CEO of PolyPid. She emphasized the potential of the combined technologies to create a new approach in immuno-oncology.
PolyPid specializes in improving surgical outcomes through locally administered, controlled, prolonged-release therapeutics. Their lead product candidate, D-PLEX100, is currently in Phase 3 clinical trials aimed at preventing abdominal colorectal surgical site infections. Additionally, the company is exploring OncoPLEX for the treatment of solid tumors, starting with glioblastoma, in preclinical stages.
The press release also contains forward-looking statements regarding the potential improvements in patient outcomes and the innovative nature of the collaboration. However, it cautions that these statements are based on current expectations and are subject to risks and uncertainties that may cause actual results to differ materially. Analysts tracking the company maintain price targets ranging from $10 to $14, suggesting potential upside despite current challenges. For comprehensive analysis including 10+ additional ProTips and detailed financial metrics, investors can access the full research report on InvestingPro.
This partnership represents PolyPid's continued efforts to explore innovative collaborations to bring value to the field of immuno-oncology. The information for this article is based on a press release statement.
In other recent news, PolyPid, a biopharmaceutical company, disclosed the progress of its SHIELD II pivotal trial for D-PLEX100 and its current financial status during its Q3 earnings call. The trial, aimed at preventing surgical site infections in colorectal surgeries, has enrolled approximately 550 subjects, with full enrollment anticipated by December 2024. Financially, PolyPid reported a cash position of $9.5 million, sufficient to fund operations into early 2025, and the potential for additional funding through private placement financing.
The company experienced a net loss of $7.8 million for the quarter, an increase from the $5.6 million loss in the same quarter the previous year. This was largely due to rising research and development expenses, which increased to $6 million due to heightened trial activity. However, the company remains optimistic about the long-term potential of D-PLEX100, with plans to submit a New Drug Application by 2026, contingent on SHIELD II trial outcomes.
These are among the recent developments for PolyPid, which continues to work on strategic partnerships for U.S. commercialization of D-PLEX100 and potential market expansion into South America and Asia. Despite the absence of specific guidance on earnings or revenue for the upcoming quarters, the company's recent activities suggest a continued focus on research and development.
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