HOUSTON - Coya Therapeutics, Inc. (NASDAQ:COYA), a biotech firm focusing on regulatory T cell therapies, has secured a $5 million investment from the Alzheimer's Drug Discovery (NASDAQ:WBD) Foundation (ADDF) for the development of its lead therapeutic candidate, COYA 302, designed to treat Frontotemporal Dementia (FTD). The ADDF purchased 603,136 shares of Coya's common stock at $8.29 per share in a private placement.
FTD is a challenging neurodegenerative disease with no current treatments available to slow or stop its progression. COYA 302 is a combination therapy that aims to suppress neuroinflammation by targeting multiple inflammatory pathways, which is a novel approach in the treatment of chronic neurological diseases.
Howard Fillit, M.D., Co-Founder and Chief Science Officer of the ADDF, expressed support for the combination therapy model, which aligns with the foundation's belief in the potential of such treatments for Alzheimer's and related dementias.
Coya's CEO, Howard Berman, Ph.D., stated the equity investment would support the phase 2 trial of COYA 302 in FTD. He highlighted the alignment of Coya's strategic approach with the ADDF's vision, emphasizing the importance of combination therapies in treating complex diseases like FTD.
COYA 302 is a biologic combination therapy that includes proprietary low dose interleukin-2 and CTLA4-Ig (abatacept), which may have additive or synergistic effects on neuroinflammation and neuronal loss, common pathways in neurodegenerative diseases such as FTD, Alzheimer's disease (AD), Parkinson's disease (PD), and Amyotrophic Lateral Sclerosis (ALS).
In a previous open-label clinical study, COYA 302 demonstrated tolerability and potential efficacy in ALS patients, with no serious adverse events reported. The study also suggested an enhancement of Treg suppressive function and a decrease in biomarkers of inflammation and oxidative stress.
The securities issued in this private placement have not been registered under the Securities Act of 1933, as amended, but Coya has agreed to file a registration statement with the SEC for the resale of the securities issued to the ADDF.
This funding step is part of the ongoing efforts to develop effective treatments for neurodegenerative diseases, which affect millions worldwide. COYA 302 is still under investigation and has not yet been approved by the FDA or any other regulatory agency.
The information in this article is based on a press release statement from Coya Therapeutics, Inc.
InvestingPro Insights
As Coya Therapeutics, Inc. (NASDAQ:COYA) advances its lead therapeutic candidate, COYA 302, for Frontotemporal Dementia (FTD), it's valuable to look at the company's financial health and market performance. With a market capitalization of $127.48 million, Coya Therapeutics is navigating the biotech industry's competitive landscape with a strategic focus on neurodegenerative diseases.
An InvestingPro Tip highlights that Coya holds more cash than debt on its balance sheet, which could provide the financial flexibility needed to fund its ongoing clinical trials. Moreover, the company has seen a significant return over the last week, with a 1-week price total return of 8.04%, and an impressive 74.6% return over the last year. This suggests a strong market confidence in the company's potential, despite the fact that it is not profitable over the last twelve months, as another InvestingPro Tip indicates.
InvestingPro Data also shows that the company's P/E ratio stands at -9.3, reflecting investor expectations of future growth despite current losses. The price of Coya's stock is currently at 81.67% of its 52-week high, with a previous close at $8.73. These metrics provide a snapshot of the company's financial performance and market valuation, which can be critical for investors considering the long-term potential of Coya's therapeutic developments.
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