Silo Pharma, Inc. (NASDAQ:SILO), a Nevada corporation, has entered into a Fourth Amendment to its Master License Agreement with the University of Maryland, Baltimore. The amendment, executed on Tuesday, modifies the schedule of diligence milestones previously set under the agreement.
The Sarasota, FL-based pharmaceutical company, which operates under the industrial classification of apparel and finished fabric products, announced the agreement on Thursday. The specifics of the amended milestones have not been disclosed, but the move is significant as it indicates ongoing progress and commitment to the Master License Agreement terms.
Silo Pharma, previously known as Uppercut Brands, Inc., Point Capital, Inc., and Gold Swap Inc., has seen several name changes in its history, with the most recent name change occurring in August 2019. The company's common stock is publicly traded on The Nasdaq Stock Market LLC under the ticker symbol SILO.
The details of the Fourth Amendment to the Master License Agreement are contained within Exhibit 10.1 of the 8-K filing. The filing also includes the company's financial statements and exhibits as required by the Securities and Exchange Commission (SEC).
In other recent news, Silo Pharma has made substantial progress in the development of its SPC-15 intranasal therapeutic for post-traumatic stress disorder (PTSD). The company has initiated a pivotal Good Laboratory Practice study, marking a significant step towards human clinical trials. Silo Pharma has also shown promising results in its pre-clinical research for SP-26, a ketamine implant designed for the treatment of chronic pain.
In addition, the biopharmaceutical company has announced a registered direct offering and concurrent private placement of securities, intending to raise approximately $2 million. These funds are projected to be used for working capital and general corporate purposes.
Silo Pharma has also reported encouraging results from a study on a new drug formulation for depression treatment, potentially improving mood stability and extending remission periods for patients. The company is set to participate in an FDA-sponsored public meeting to discuss the use of ketamine in emerging therapeutic areas. These are the recent developments in the company's ongoing commitment to creating novel formulations and drug delivery systems for traditional therapeutics and psychedelic treatments.
InvestingPro Insights
As Silo Pharma, Inc. (NASDAQ:SILO) continues to navigate its strategic partnership through the amended Master License Agreement, investors might be keen to understand the company's financial health and market performance. With an impressively high gross profit margin of 91.9% over the last twelve months as of Q1 2024, Silo Pharma demonstrates its ability to retain a significant portion of sales revenue after accounting for the cost of goods sold.
However, the company's financial challenges are also evident. The adjusted market capitalization of $3.72 million and a negative P/E ratio of -0.99 reflect a market that is currently skeptical of the company's earnings potential. Moreover, the company's operating income margin at an alarming -5452.86% suggests substantial operational costs relative to its revenue.
On the brighter side, one of the InvestingPro Tips highlights that Silo Pharma holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, the company's management has been actively buying back shares, signaling confidence in the company's future prospects. For investors looking for comprehensive analysis, there are 11 additional InvestingPro Tips available, which can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the stock has experienced a significant downturn over the last month with a 47.4% drop, it's trading near its 52-week low, which could present a buying opportunity for contrarian investors or those with a belief in the company's long-term value proposition. The next earnings date on August 28, 2024, will be a crucial event for the company to potentially reassure investors about its future direction.
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