HIGH POINT, NC – vTv Therapeutics Inc . (NASDAQ:VTVT), a pharmaceutical company specializing in the development of treatments for a range of clinical conditions, announced the termination of a significant licensing agreement. On Monday, vTv Therapeutics LLC, a subsidiary of the company, received a notice from OnKure Therapeutics, previously known as Reneo Pharmaceuticals, Inc., to end the license agreement originally signed on December 21, 2017, and later amended on December 20, 2021.
The agreement granted OnKure an exclusive, worldwide license to vTv Therapeutics' intellectual property related to the company's peroxisome proliferator-activated receptor delta (ppar-δ) agonist program. In their notice, OnKure stated their decision to halt the development of the program. The termination of this agreement is set to take effect on January 20, 2025.
This development was formally reported in a Form 8-K filed with the Securities and Exchange Commission on Friday. The filing did not disclose specific reasons behind OnKure's decision to discontinue the development or any potential financial impacts on vTv Therapeutics resulting from the termination of the agreement.
The cessation of this partnership concludes a nearly seven-year collaboration between vTv Therapeutics and OnKure on the ppar-δ agonist program. This program was one of the therapeutic ventures aimed at developing novel drug candidates within vTv Therapeutics' research pipeline.
In other recent news, vTv Therapeutics Inc. has experienced a significant development with the FDA putting a clinical hold on its Phase 3 trial for the diabetes drug cadisegliatin, also known as TTP399. The hold comes after an unresolved chromatographic signal was identified in a recent study, necessitating further investigation before the trial can continue. Despite this, the company has stated that no safety concerns have been raised in previous studies of the drug, which has been administered to over 500 subjects.
In other developments, vTv Therapeutics has made considerable progress in its diabetes research. Cadisegliatin, a novel treatment intended to improve glycemic control, has received Breakthrough Therapy designation from the FDA and has commenced pivotal trials. Furthermore, the company has announced plans for a Phase 2 trial to evaluate cadisegliatin as an adjunct therapy for type 2 diabetes patients, in collaboration with G42 Healthcare Research Technology Projects LLC and IROS.
InvestingPro Insights
The termination of vTv Therapeutics' licensing agreement with OnKure Therapeutics comes at a time when the company's financial metrics paint a complex picture. According to InvestingPro data, vTv Therapeutics has a market capitalization of $43.98 million USD, reflecting its current market valuation. Despite the recent setback, the company has shown a strong return over the last month, with a 12.82% price total return.
InvestingPro Tips highlight that vTv Therapeutics holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates the aftermath of the terminated agreement. Additionally, the company's liquid assets exceed short-term obligations, potentially offering a buffer against immediate financial pressures.
However, it's important to note that vTv Therapeutics is not currently profitable, with a negative P/E ratio of -2.41 over the last twelve months as of Q2 2024. The company also suffers from weak gross profit margins, which may be further impacted by the loss of this partnership.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 6 additional InvestingPro Tips available for vTv Therapeutics, which could provide valuable context for understanding the company's position following this development.
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