CAMBRIDGE, Mass. - NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO) has entered into a joint research agreement with Dong-A ST Co. Ltd. and ImmunoForge to develop a once-monthly formulation for obesity treatment using a novel technology that could significantly extend the drug's half-life.
The collaboration aims to enhance the drug DA-1726's effectiveness and patient compliance by utilizing ImmunoForge's Elastin-Like Polypeptide (ELP) platform technology.
DA-1726 is a dual oxyntomodulin (OXM) analog agonist targeting receptors involved in reducing appetite and increasing energy expenditure. The drug is currently in Phase 1 studies and has shown promise in pre-clinical trials, demonstrating weight loss effects and improved lipid profiles compared to other analogs.
The partnership seeks to transform DA-1726 into a long-acting form, potentially addressing the challenges of frequent dosing.
ImmunoForge's ELP technology is designed to increase the half-life of drugs by up to 200 times, which could lead to less frequent dosing schedules for patients. This technology has already been applied in other clinical trials conducted by ImmunoForge, including for diseases such as Dermatomyositis, Polymyositis, and Duchenne Muscular Dystrophy.
The financial terms of the agreement have not been disclosed. However, the collaboration between NeuroBo, a company focused on cardiometabolic diseases, Dong-A ST, a leading pharmaceutical company in Korea, and ImmunoForge, a specialist in novel drug development, could result in a first-in-class, once-monthly obesity treatment.
InvestingPro Insights
As NeuroBo Pharmaceuticals (NASDAQ:NRBO) embarks on its joint venture to enhance DA-1726, the company's financial health and stock performance provide essential context for investors. NeuroBo currently holds a market capitalization of approximately $29.35 million, indicating its position as a smaller player within the biopharmaceutical industry. Despite the potential for innovation in obesity treatment, NeuroBo's stock has experienced significant volatility. Over the last week, the stock has seen a price total return of -12.93%, reflecting a turbulent market response that may concern investors.
The company's financial metrics show a challenging profitability landscape, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.77, underlining its lack of profitability during this period. Additionally, NeuroBo's operating income, adjusted for the same period, stands at a loss of $20.25 million, emphasizing the company's current financial strain.
InvestingPro Tips for NeuroBo highlight a mix of financial strengths and weaknesses. On the positive side, the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, suggesting a degree of financial stability in the near term. However, it's important to note that NeuroBo is quickly burning through cash and has not been profitable over the last twelve months. Moreover, the stock has fared poorly over the last month, with a price total return of -21.19%, and it does not pay a dividend to shareholders, limiting its appeal to income-focused investors.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available on the platform. These tips may offer further insights into NeuroBo's stock behavior and financial health, which could be particularly relevant given the recent announcement of their collaborative efforts in obesity treatment. For more detailed tips and metrics, visit NeuroBo's page on InvestingPro: https://www.investing.com/pro/NRBO.
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