Biodexa Pharmaceuticals PLC-ADR BDRX shares are trading higher by 60% to $4.48 Monday morning after the company announced it has acquired the rights to tolimidone, an experimental drug initially developed by Pfizer Inc. for gastric ulcers.
Biodexa says tolimidone, a selective activator of the enzyme lyn kinase, shows promise for Type-1 diabetes treatment by preserving and stimulating insulin-producing beta cells.
Biodexa plans a Phase II study for Type-1 diabetes, aiming to confirm its effectiveness in patients.
See Also: Why Shopify Stock Is Moving Higher Monday
What Else?
The company says Type-1 and Type-2 diabetes both stem from insufficient insulin production, leading to high blood sugar levels. Type-1 diabetes involves the immune system attacking insulin-producing cells, necessitating daily insulin administration.
Tolimidone's potential extends to Type-2 diabetes treatment as well, showcasing blood sugar reduction in preclinical studies.
The deal involves an upfront payment to Adhera and secured noteholders, with additional payments based on milestones achieved. Biodexa also commits to issuing shares to Melior and Bukwang, along with single-digit tiered royalties on tolimidone sales.
The transaction's completion is contingent on specific closing conditions and is expected to finalize in the fourth quarter of 2023.
According to data from Benzinga Pro, BDRX has a 52-week high of $579.20 and a 52-week low of $2.26.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
