SCNI - Scinai Immunotherapeutics stock surges 55% on breakthrough psoriasis treatment results
2024-07-15 12:31:08 ET
Scinai Immunotherapeutics Ltd (NASDAQ: SCNI) unveiled promising preclinical outcomes for its innovative anti IL-17A/F antibody fragment (NanoAb) aimed at treating mild to moderate plaque psoriasis.
The biotechnology firm’s shares experienced a significant surge of 55% this morning after the announcement, but despite this increase, they are still down approximately 35% from their highest point over the past 52 weeks.
Why is it significant for Scinai stock?
Dr. Tamar Ben-Yedidia, Chief Scientist at SCNI, highlighted the milestone achievement, confirming that the NanoAb effectively neutralizes both isoforms of the cytokine IL-17 (A and F), crucial contributors to plaque psoriasis.
In a press release , Dr. Ben-Yedidia expressed optimism: “These positive results are very encouraging and mark a significant step forward in the development of a novel treatment for the underserved needs of mild to moderate plaque psoriasis patients.”
Currently, approximately 13 million patients across the major markets (US, EU5, and Japan) are diagnosed with plaque psoriasis. Half of these patients have mild disease, while around 28% suffer from moderate psoriasis. Treatments for moderate to severe cases typically involve biologics and JAK inhibitors, which are highly effective but are administered systemically, making them costly and requiring ongoing use.
Scinai’s product aims to address these shortcomings. It is a biologic designed for local delivery via intradermal injection directly into psoriatic lesions using a short, nearly painless needle.
The product enables mild to moderate psoriasis patients to benefit from a treatment regimen that is less frequent compared to traditional biologics, offering high specificity and potency with significantly reduced risks of local side effects associated with corticosteroids or systemic side effects linked to systemic biologic administration.
Scinai to commence a longer duration follow-on study
Following these promising findings, Scinai Immunotherapeutics plans to advance with a longer-duration follow-on study later this year.
This study aims to refine dosing strategies and further validate the NanoAb’s efficacy in treating psoriasis lesions.
Collaborating with Professor Amos Gilhar from the Technion Israel Institute of Technology, the company seeks to establish a robust clinical pathway for its innovative biologic treatment.
SCNI remained in loss in the first quarter of 2024
Despite the recent surge in stock value driven by positive clinical outcomes, SCNI remains a speculative investment, particularly for income-oriented investors, as the company does not currently offer dividends.
This assessment follows SCNI’s first-quarter financial report, which showed a reduced net loss of $2.16 million compared to $3.5 million a year earlier.
The company bolstered its financial position with $1.69 million raised in the first quarter, ending with $4.83 million in cash and equivalents.
Looking ahead, Scinai Immunotherapeutics aims to forge strategic partnerships for its COVID-19 self-administered inhaled NanoAb and expand its applications beyond psoriasis treatment.
Recent initiatives include securing an extension from Nasdaq to maintain listing compliance and receiving a Letter of Intent from the European Investment Bank outlining terms for loan-to-equity conversion.
Despite these developments, SCNI remains relatively undercovered by Wall Street analysts, presenting both challenges and opportunities as it navigates the competitive biopharmaceutical landscape.
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