Why Microcap Biopharma Alterity Therapeutics Is Rallying

Shares of Alterity Therapeutics Ltd ATHE gap-opened Monday's session higher and are sustaining the gains.

What Happened: The Australian biopharma said the U.S. Patent and Trademark Office has approved a new composition of matter patent related to its drug development portfolio focused on neurodegenerative diseases.

The patent covers more than 150 novel pharmaceutical compositions that are designed to redistribute the labile iron implicated in Parkinson's disease, Alzheimer's disease and other neurodegenerative conditions, the company said.

Related Link: The Week Ahead In Biotech: The Vaccine Updates, Drug Presentations, And FDA Decisions That Will Move The Markets

Why It's Important: Alterity said its strategy is predicated on the hypothesis that its therapeutics can disrupt the underlying pathology of neurodegenerative conditions, in which labile iron is implicated in disease pathology.

This conditions that could be treated include Parkinsonian disorders such as Parkinson's disease and Multiple System Atrophy, as well as Alzheimer's disease, the company said. 

The patent gives Alterity 20 years of exclusivity.

Alterity's most advanced compound, ATH434, is in clinical development for Multiple System Atrophy.

"This broad patent establishes an excellent foundation for the company to pursue multiple therapeutics across a spectrum of neurodegenerative disease," said CEO Geoffrey Kempler.

ATHE Price Action: At last check, Alterity shares were soaring 124.35% to $2.58.

Related Link: Attention Biotech Investors: Mark Your Calendar For These November PDUFA Dates