Inhibikase Therapeutics, Inc. (Nasdaq: IKT) stock gained on Wednesday despite another bearish day in the broader markets, moving higher by about 3% and, at press time, adding another 5% to that increase. The bullish sentiment makes sense even in the face of market turmoils. IKT scored massively positive news from the FDA when it announced lifting its clinical hold on IkT-148009. That news started a rally in no uncertain terms, with the bulls taking the IKT reigns to send its shares higher by over 24% before the bears took charge after a slew of news negative on the global banking sector. Still, Wednesday proved again that IKT has legs left to rally. And the excellent news for investors when the bulls return is that a continuation of the IKT share price rise is likely.
Remember, the news isn't only relative to its FDA clinical hold lift. Investors also embrace that IKT raised $10 million last month to develop treatments for Parkinson's Disease and chronic myelogenous leukemia. The deal included $4.2 million in a private investment in public equity (PIPE) deal from New York-based Armistice Capital and $5.2 million from a confidentially marketed registered direct offering. The remaining funds accrued from banking fees and commissions.
Here's one of the biggest reasons investors are looking at IKT. Most simply put: while February set the table financially, March is proving to be a pivotal month from a clinical perspective. And if all stays on plan, IKT could deliver a best-in-class treatment against certain neurologic disorders.
Back Into The Clinic
The most significant part of that proposition: the IKT mission is again in progress. In fact, this clinical-stage pharmaceutical company, which is developing protein kinase inhibitor therapeutics to modify the course of Parkinson's disease, Parkinson's-related disorders, and other diseases of the Abelson Tyrosine Kinases, is moving forward quickly to prove its treatment candidate provides a solution to debilitating neurological conditions. And with cash in the bank, IKT may be better positioned than ever to accelerate that mission.
Moreover, the FDA is helping its cause by lifting the complete Clinical Hold on IkT-148009, IKT's c-Abl inhibitor, in Multiple System Atrophy (MSA), opening the pathway for IKT to proceed with its plans for a planned Phase 2 clinical trial in MSA. The FDA's review of IKT's response and ultimate full release of the clinical hold on IkT-148009 in MSA is a valuable event in and of itself. Indeed, investors responded in kind, buying shares of IKT at a volume pace considerably higher than its average. In fact, at roughly 1.2 million shares traded on Monday, it's the third-highest trading pace since January. And the interest is warranted.
Preclinical models have highlighted the therapeutic potential of IkT-148009 in MSA, with one of two ongoing model studies showing a substantial neuroprotective benefit in response to c-Abl inhibition by IkT-148009. Now, with the clinical hold lifted and the IND back open, IKT is again on the path to completing these studies before initiating its p[lanned Phase 2a trial for this patient population. So far, the data is impressive.
To date, the IkT-148009 candidate is demonstrating effective therapeutic action. Formula-wise, the drug is a potent, selective, brain-penetrant c-Abl tyrosine kinase inhibitor that has been shown to halt disease progression, protect and restore lost neurons and clear the underlying protein pathology in animal studies of Parkinson's disease. MSA is a rare form of Parkinsonism, which occurs in a different part of the brain and advances three times faster than ordinary Parkinson's disease. IKT is on track to beat it.
Effectiveness In Treating Neurologic Disorders
In previously published work, Inhibikase demonstrated that MSA may also be initiated by c-Abl modification of alpha-synuclein aggregates in the brain. During ongoing animal models of MSA, IKT has observed that IkT-148009 shows a substantial neuroprotective benefit, preventing functional loss in mice following 7-week, once-daily dosing. The next steps are for the company to continue to evaluate the functional benefit of IkT-148009 for an additional 3 months to assess whether IkT-148009 leads to clearance of alpha-synuclein aggregate pathology in the treated animals. That clock is already ticking and is excellent news from a value creation perspective.
IKT's planned '202' trial design intends to evaluate the safety, tolerability, and pharmacokinetics of IkT-148009 in MSA patients over 6 months of once-daily dosing at one of two oral doses. Secondary and exploratory endpoints will evaluate clinical benefit using a modification of the Total Unified MSA Rating Scale (UMSARS), assessment of the quality of life, severity of symptoms arising from orthostatic hypotension, and the levels of neurofilament light chain in peripheral blood and spinal fluid. Additionally, biomarkers of treatment benefit will be explored by measuring levels of phosphorylated alpha-synuclein in spinal fluid, peripheral blood, and skin. The clinical effect on the progression of atrophy will be monitored in the trial using MRI. The most excellent part of these studies, aside from potentially saving thousands of lives and treating a debilitating condition, is that IKT can monitor progress.
That means updates are likely, which can lead to milestones getting reached that have the potential to become catalysts.
Market Opportunity In-Play
Undoubtedly, the rewards from effectively treating MSA can be substantial, resulting from Multiple System Atrophy being a rapidly progressive orphan disease affecting the central and autonomic nervous systems. While all the aspects of its destruction aren't yet known, what is known is that MSA is characterized by pathological alpha-synuclein aggregation, which may lead to cell dysfunction and degeneration of neurons. Also known, it's significantly debilitating and can be fatal, and classified as a rare disease, with approximately three individuals per 100,000 individuals per year aged 50 years or older diagnosed with the disease.
And it has no preference for gender. MSA affects men and women equally, with the onset of symptoms typically occurring in the fifth or sixth decade of life. The worst part of the disease is its rapid progression, often leading to patients becoming wheelchair reliant. The patient's condition can go downhill from there, with varying combinations of extrapyramidal dysfunction, cerebellar ataxia, dysautonomia, and parkinsonism, also likely results of the disease. Currently, no disease-modifying or symptomatic therapies exist for MSA.
And that's where the value proposition lives for IKT. They have a drug candidate demonstrating impressive disease-fighting ability. For any biotech heading into a Phase 2 trial, that opens several doors of opportunity. Of course, companies can go it alone. But being in a Phase 2 trial lends credibility to the clinical initiatives, which can open discussions with big pharma interested in getting a running start to treat an unmet medical need that brings the potential for a substantial and sustained revenue stream. That includes those already in the space, like Pfizer (NYSE: PFE), Merck (NYSE: MRK), and Eli Lilly (NYSE: LLY), who often acquire rather than develop promising therapeutic candidates.
Still, without partnerships or licensing, IKT is exploiting a sweet spot of opportunity by being further along than many in developing therapeutics for Parkinson's disease and related disorders. Moreover, they are doing things differently, advancing a multi-therapeutic pipeline intending to target the treatment of Parkinson's disease inside and outside the brain and other conditions that arise from Ableson Tyrosine Kinases.
Built For A Bullish Ride In 2023
In other words, IKT isn't a single shot on goal company. They have multiple indications in their crosshairs, pursuing Parkinson's-related disorders of the brain and GI tract, orphan indications related to Parkinson's disease such as Multiple System Atrophy, and drug delivery technologies for kinase inhibitors such as IkT-001Pro, a prodrug of the anticancer agent imatinib mesylate that IKT believes will provide a better patient experience with fewer on-dosing side-effects.
That's not all. The Company's RAMP™ medicinal chemistry program has identified several follow-on compounds to IkT-148009 to be potentially applied to other cognitive and motor function diseases of the brain. All told, back in the clinic and flush with cash, IKT looks better positioned than ever to capitalize on its opportunities. And if all stays on plan, they can do more than capitalize; they can maximize.
Thus, with an ambitious 2023 development plan, IKT is indeed positioned to recover the value lost as they move back into the clinic. And in doing so exposes a value investment opportunity whose bullish run may be far from over.
Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to two-thousand-dollars cash via wire transfer by a third party to produce and syndicate content for Inhibikase Therapeutics, Inc.. for a period of one week ending on 03/20/23. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Company Name: STM, LLC.
Contact Person: Michael Thomas
Country: United States