Alterity Therapeutics Soars After Announcing the Granting of New Patent
Alterity Therapeutics (NASDAQ; ATHE) faced a stagnant month till today, after announcing the U.S Patent and Trademark Office granted the company a new composition of matter patent. This patent secures a broad monopoly over a new class of iron chaperones which is a technology that allows for the redistribution of excess iron in the central nervous system. Upon the news, shares soared over 69.35% throughout the trading day.
Alterity Therapeutics is a Melbourne based biotechnology company that engages in the research and development of therapeutic drugs targeting the underlying causes of degeneration in the brain. Their therapies focus on Parkinson’s movement disorders, Alzheimer’s disease, Huntington disease as well as other neurodegenerative disorders.
This new patent grants Alterity 20 years of exclusivity, providing a strong basis for drug development and commercialization in neurodegenerative diseases. The patent also covers over 150 novel pharmaceutical compositions that are designed to redistribute the labile iron involved in neurodegenerative diseases.
The potential for the new technology is not to be understated. According to the company, excess iron in the brain is responsible for many common neurodegenerative diseases such as Alzheimer's and Parkinson’s disease. This new technology redistributes the excess iron across the central nervous system and has the potential to treat neurodegenerative diseases from a new standpoint.
The company has also announced plans to launch the Phase 2 trial of its lead clinical candidate, ATH434, by the end of this year. ATH434 is a small molecule drug currently being developed to target multiple system atrophy, a form of atypical Parkinsonism where iron plays a major role. Alterity recently announced that they have received positive guidance from the European Medicines Agency’s Committee for Medicinal Products for Human Use on the ATH434 Phase 2 trial. There is mutual agreement that ATH434 has potential as a disease modifying treatment.
After announcing the new patent, share prices soared, surging 58% premarket and 69.35% throughout the trading day. Assuming the company’s clinical trials succeed, they are granted legal approval, and tech commercialization of their product is victorious, the future looks promising.
However, the volatility and risk this company carries is also not to be understated. Alterity Therapeutics is still a clinical stage penny stock company, with no revenue and all risk. Investors know there are no profits or revenues to be made currently and are holding on to the hope that the future holds more. Despite the massive spike in share prices today, shares of the company are still short of the 52W high of $5.05, closing today at $2.20. Still, the company is up 17.73% over the past year. Historically, the company has performed with extreme volatility, in both the short and long run. From a broader time frame, shares are down 53.16% and have seen a generally consistent decline over the past 5 years.
This new patent is a step towards a brighter future for the company. Many who have invested are optimistic at the ATH434 product as well as the new technology and hope that they find success and can be put into the market. The future for Alterity Therapeutics definitely looks interesting.
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Written by Jessica Fang