STONY BROOK, NY - Applied DNA Sciences, Inc. (NASDAQ:APDN), specializing in PCR-based DNA technologies, has received a Notice of Allowance from the US Patent and Trademark Office for its patent application titled "Compositions and Methods for RNA Synthesis." This patent will protect the composition of the company's chemically modified RNA polymerase enzyme, Linea™ RNAP, until 2041.
Linea RNAP is a key element of Applied DNA's Linea™ IVT platform, which is designed to enhance mRNA production for manufacturers. The platform is expected to simplify the mRNA production process and reduce contamination from double-stranded RNA, potentially leading to more efficient production of better-quality mRNA.
The technology behind Linea RNAP was obtained through the acquisition of Spindle Bio, Inc. in July 2023. Dr. James A. Hayward, president and CEO of Applied DNA, expressed that the patent allowance and the upcoming initiation of their GMP capabilities signify the company's dedication to providing GMP-grade materials for mRNA manufacturing. With a large number of mRNA therapies in development, Applied DNA aims to gain significant market share with its Linea IVT platform.
The Linea DNA platform, another offering from Applied DNA, allows for the cell-free production of DNA in varying quantities. It is capable of generating high-fidelity DNA constructs, which are free from unwanted DNA sequences found in other DNA sources. This platform is scalable and allows for the easy modification of DNA constructs.
Applied DNA Sciences develops technologies for the production and detection of DNA, operating in three main business areas: synthetic DNA manufacturing for nucleic acid-based therapeutics, molecular diagnostics and genetic testing services, and DNA manufacturing and detection for industrial supply chain security services.
The information in this article is based on a press release statement from Applied DNA Sciences, Inc.
In other recent news, Applied DNA Sciences has been active on several fronts. The biotech firm recently disclosed a public offering expected to generate approximately $12 million in gross proceeds. The offering consists of over 9 million units, each containing either a share of common stock or a pre-funded warrant to purchase one, along with additional common shares at an exercise price of $1.99 per share. The firm plans to use the net proceeds to expand its Therapeutic DNA Production Services and MDx Testing Services, among other operational costs.
In a strategic partnership, Applied DNA has teamed up with HDT Bio to expedite vaccine production during health crises. The collaboration is designed to manufacture mRNA vaccines rapidly, potentially within a seven-day timeframe. The contract involves Applied DNA providing Linea™ DNA IVT templates for use with HDT Bio's LION™ formulated repRNA vaccination platform.
The company also confirmed a 1-for-20 reverse stock split of its common stock, set to take effect at the start of the day on Thursday, April 25, 2024. The reverse stock split will convert every 20 shares of the company's issued and outstanding common stock into one share. This action aims to ensure compliance with the Nasdaq's minimum bid price requirement.
Lastly, Applied DNA has announced a collaboration with enzyme producer Alphazyme LLC, to expand the production capacity of a key enzyme used in mRNA therapeutics. The agreement focuses on scaling up the manufacturing of Applied DNA's proprietary Linea™ RNA polymerase (RNAP), an essential component of the company's Linea™ IVT platform for mRNA production. This move aligns with the company's strategy to capitalize on the growing interest in their Linea IVT platform.
InvestingPro Insights
Applied DNA Sciences, Inc. (NASDAQ:APDN), a leader in PCR-based DNA technologies, has recently been in the spotlight due to a promising patent allowance. As investors consider the potential market opportunities this patent could unlock, it's important to look at the financial health and market performance of the company to gauge its investment prospects.
One key indicator from InvestingPro data shows that Applied DNA holds a market capitalization of 5.23 million USD, which is relatively small, suggesting that it's a micro-cap stock with potentially higher volatility and risk. The company's revenue for the last twelve months as of Q2 2024 stands at 5.52 million USD, but it's important to note that this represents a significant decline of 68.52% from the previous period. This could be a point of concern for investors looking for growth in the biotechnology sector.
Despite these challenges, an InvestingPro Tip highlights that Applied DNA holds more cash than debt on its balance sheet, which could provide some financial flexibility for the company as it continues to develop its technology platforms. Additionally, the stock's Relative Strength Index (RSI) suggests it is in oversold territory, which some investors might interpret as a potential buying opportunity.
However, investors should be aware that analysts do not anticipate the company will be profitable this year, and the stock has experienced significant price volatility. For those interested in deeper analysis, there are additional InvestingPro Tips available that could provide further insight into Applied DNA's financials and market performance. Using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
Overall, while the patent allowance is a positive development for Applied DNA, investors should carefully consider the company's financial data and market performance when making investment decisions. For those looking to explore more about Applied DNA Sciences, Inc., further tips and metrics are available on the InvestingPro platform.
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