On Tuesday, H.C. Wainwright maintained a Neutral rating on 60 Degrees Pharmaceuticals Inc (NASDAQ: SXTP), currently trading at $1.16, following the company's announcement of a patent license agreement with Tufts Medical (TASE:PMCN) Center.
According to InvestingPro data, the stock has experienced significant volatility, trading between $0.70 and $18.36 over the past 52 weeks. The collaboration aims to further the development and commercialization of Arakoda (tafenoquine) for the treatment and prevention of babesiosis. This rare seasonal disease is transmitted by ticks carrying parasites that infect red blood cells.
60 Degrees, which currently markets Arakoda as an anti-malaria medication for adults in the U.S. and abroad, will now co-own patent applications related to the drug's use for babesiosis with Tufts Medical Center. Under the name Kodatef, the drug is also available in Australia. The U.S. Food and Drug Administration (FDA) has previously awarded Orphan Drug Designation to Arakoda for the treatment of babesiosis. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 5.26, though it's currently experiencing rapid cash burn.
As per the agreement between 60 Degrees and Tufts Medical Center, 60 Degrees will be responsible for leading prosecution and maintenance of the patents worldwide. The company has been granted exclusive global commercialization rights for Arakoda in the context of babesiosis. Tufts Medical Center, on the other hand, will keep a royalty-free, global license for research purposes and will receive royalties on net sales of any Arakoda-based products that are marketed for the treatment or prevention of babesiosis.
The agreement signifies a step forward for 60 Degrees Pharmaceuticals in potentially expanding the applications of Arakoda beyond malaria prophylaxis. The company's partnership with Tufts Medical Center is expected to leverage the existing clinical profile of Arakoda to address the needs of patients with babesiosis. While analysts anticipate sales growth in the current year, InvestingPro subscribers can access 11 additional key insights about the company's financial health and growth prospects.
In other recent news, 60 Degrees Pharmaceuticals has reported significant progress in various areas. The company's Q2 revenue saw a substantial increase, largely due to a 288% rise in deliveries of its antimalarial medication, ARAKODA. However, despite this revenue boost, the company experienced a net loss due to increased operating expenses.
In a significant development, the company has expanded its clinical trial for Arakoda to include Brigham and Women's Hospital. The trial aims to assess the effectiveness of Arakoda in treating babesiosis, a rare tick-borne disease. The company anticipates the trial will complete enrollment by September 30, 2025, with initial analysis potentially occurring in early 2026.
60 Degrees Pharmaceuticals also launched a pilot program to promote ARAKODA and secured shareholder approval for several key proposals, including the exercise of warrants and a reverse stock split. Moreover, the company disclosed a private placement sale of shares and warrants, with H.C. Wainwright & Co. serving as the exclusive placement agent.
Analysts from Ascendiant Capital maintain a Buy rating on 60 Degrees Pharmaceuticals, while H.C. Wainwright maintains a Neutral stance.
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