SARASOTA, FL - Silo Pharma, Inc. (NASDAQ:SILO), a biopharmaceutical company specializing in novel drug delivery systems, has announced a collaboration with Resyca BV to advance its lead drug candidate, SPC-15. The partnership focuses on developing a microchip-based nasal spray system for delivering drugs directly to the brain, potentially enhancing treatment for post-traumatic stress disorder (PTSD).
The Device and CMC Development Master Plan between Silo Pharma and Resyca, a joint venture between Bespak Group and Medspray Pharma BV, aims to support investigational new drug (IND)-enabling studies for SPC-15. This collaboration will help refine the clinical formulation and stability of SPC-15, a serotonin 4 (5-HT4) receptor agonist, for its upcoming large animal Good Laboratory Practice (GLP) study.
Silo Pharma's CEO, Eric Weisblum, highlighted the potential of the nose-to-brain delivery method to increase the drug's concentration in the brain, providing a quicker therapeutic response and improved safety for PTSD patients. The company is currently engaged in GLP-compliant pharmacokinetic and pharmacodynamic studies of SPC-15 and has submitted a pre-IND briefing package to the U.S. Food and Drug Administration (FDA).
SPC-15, if successful in clinical trials, could be eligible for the FDA's 505(b)(2) regulatory pathway, which could streamline its approval process. Silo Pharma is conducting preclinical studies for SPC-15 in partnership with Columbia University and holds an exclusive license to develop, manufacture, and commercialize the drug globally.
The information in this article is based on a press release statement.
In other recent news, Silo Pharma has made significant strides in developing treatments for Alzheimer's disease and stress-related disorders. The company secured an exclusive global license for its Alzheimer's medication, SPC-14, which targets specific receptors to treat cognitive and neuropsychiatric symptoms associated with the disease.
In financial developments, Silo Pharma aims to raise approximately $2 million through a registered direct offering and concurrent private placement of securities. These funds are projected to be used for working capital and general corporate purposes. The company is also making progress with its SP-26 ketamine implant for chronic pain, with preclinical research showing promising results.
Silo Pharma has amended its Master License Agreement with the University of Maryland, demonstrating an ongoing commitment to the agreement's terms.
These recent developments underscore Silo Pharma's commitment to creating novel drug formulations and delivery systems for traditional therapeutics and psychedelic treatments. The company's efforts are particularly focused on Alzheimer's disease, stress-related disorders, PTSD, and chronic pain.
InvestingPro Insights
In light of Silo Pharma's recent developments with its lead drug candidate SPC-15, key financial metrics and expert analysis from InvestingPro provide additional context for investors monitoring the company's progress. With a market capitalization of just $8.3 million, Silo Pharma is a small-cap company that could potentially offer high rewards, albeit with a corresponding level of risk.
InvestingPro Tips highlight that Silo Pharma has been aggressively buying back shares and holds more cash than debt on its balance sheet, which could be interpreted as a sign of management's confidence in the company’s future and financial stability. Additionally, with an impressive gross profit margin of 91.9% for the last twelve months as of Q1 2024, the company demonstrates a strong ability to retain earnings at the gross level, which is crucial for funding ongoing research and development.
However, investors should be mindful of the company's high valuation multiples and the fact that analysts do not anticipate profitability this year. Silo Pharma's price-to-earnings (P/E) ratio stands at -0.99, and the adjusted P/E ratio for the last twelve months as of Q1 2024 is -2.35, reflecting investor skepticism about the company's earnings potential in the near term. Moreover, the company's stock has experienced significant return over the last week, with a 129.59% price total return, which may suggest a volatile investment landscape.
For those interested in a deeper dive into Silo Pharma's financials and potential investment strategies, there are over 10 additional InvestingPro Tips available at https://www.investing.com/pro/SILO. These tips can provide investors with a more comprehensive understanding of the company's position within the biopharmaceutical industry. To access these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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