RAMAT GAN, Israel - Can-Fite BioPharma (NYSE:CANF) Ltd. (NYSE American: CANF), a biotechnology firm specializing in small molecule drugs for cancer and inflammatory diseases, has expanded its agreement with Ewopharma to include marketing rights for Namodenoson in treating pancreatic carcinoma.
The Switzerland-based Ewopharma had previously secured exclusive distribution rights for Namodenoson for liver cancer and NASH, as well as Piclidenoson for psoriasis, in Central Eastern European countries.
This extension follows an upfront payment of $2.25 million from Ewopharma to Can-Fite, with future regulatory and sales milestones potentially bringing an additional $40.45 million, plus 17.5% royalties on net sales. The expansion to pancreatic cancer treatments falls under the same transaction terms.
Can-Fite also announced the receipt of a Canadian patent allowance for Namodenoson's use in reducing liver fat in NASH patients. This adds to the drug's patents in the U.S., EU, Japan, and China. The company is currently enrolling patients for a Phase IIb study focusing on liver pathology as the primary endpoint.
In other developments, the Journal of the European Academy of Dermatology and Venereology published positive data from Can-Fite's COMFORT-1 Phase III Psoriasis Study, highlighting Piclidenoson's safety and efficacy. Piclidenoson is also undergoing a pivotal Phase III study approved by the FDA and EMA.
Financially, Can-Fite reported revenues of $0.74 million for the year ended December 31, 2023, marking a decrease from the previous year. Research and development expenses dropped to $5.98 million, a 22.9% decrease, largely due to reduced expenses associated with Piclidenoson. The company's net loss improved to $7.63 million, from $10.17 million in 2022.
As of December 31, 2023, Can-Fite had cash, cash equivalents, and short-term deposits totaling $8.90 million, reflecting the company's ongoing operations and financing activities throughout the year.
This news is based on a press release statement.
InvestingPro Insights
Can-Fite BioPharma Ltd. (NYSE American: CANF) has shown a strong commitment to expanding the potential of its drug Namodenoson, with the latest agreement extension with Ewopharma. While the company is making strides in clinical development, a snapshot of the financial health and stock performance offers additional context for investors considering Can-Fite's prospects.
InvestingPro data indicates a mixed financial landscape for Can-Fite. The company's Price to Book ratio stands at 2.63 as of the last twelve months leading up to Q3 2023, suggesting a moderate valuation of the company's net assets. Despite generating a Gross Profit Margin of 100%, Can-Fite's Operating Income Margin was significantly negative at -1203.06%, reflecting substantial operating losses relative to its revenue during the same period. This is in line with the net loss reported in the company's recent financial results, although the loss showed improvement from the previous year.
From a stock performance perspective, Can-Fite's 1 Month Price Total Return as of Y2024.D88 showed an increase of 8.65%, which may capture investor optimism following recent announcements. However, the 6 Month Price Total Return indicates a decline of -9.96%, highlighting the volatility and the challenges the company faces in the market.
InvestingPro Tips for Can-Fite include the company's strong liquidity position, with liquid assets exceeding short-term obligations, and a balance sheet that holds more cash than debt. Yet, the company is quickly burning through its cash reserves, and analysts do not anticipate Can-Fite will be profitable this year. Additionally, the stock's RSI suggests it is currently in overbought territory, which may signal caution to potential investors.
For those interested in a deeper dive into Can-Fite's financials and stock performance, InvestingPro offers additional tips and metrics. There are seven more InvestingPro Tips available, which could provide further insights into Can-Fite's investment potential. To explore these tips and take advantage of the comprehensive analysis, visit InvestingPro and use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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