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FDA fast tracks Azitra's new dermatology treatment

Published 18/09/2024, 14:06
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BRANFORD, Conn. - Azitra Inc. (NYSE American: AZTR), a clinical-stage biopharmaceutical company, has received Fast Track Designation from the U.S. Food and Drug Administration (FDA) for its ATR-04 product candidate, a topical treatment aimed at addressing moderate to severe skin toxicity associated with cancer treatments.


The FDA's Fast Track program is designed to expedite the development and review of drugs that treat serious conditions and fill unmet medical needs. This designation can potentially shorten the time ATR-04 takes to reach the market by allowing more frequent communication with the FDA and eligibility for accelerated approval processes.


ATR-04 is a live biotherapeutic product that includes a genetically modified strain of Staphylococcus epidermidis. The modifications are intended to enhance safety by removing an antibiotic resistance gene and controlling bacterial growth. The treatment addresses skin rashes caused by Epidermal Growth Factor Receptor inhibitors (EGFRi), which suppress skin immunity leading to inflammation, often with increased levels of IL-36γ and S. aureus bacteria. In the U.S., approximately 150,000 patients suffer from EGFRi-induced skin toxicity, representing a market opportunity exceeding $1 billion.


Francisco Salva, CEO of Azitra, stated that this FDA recognition underscores the urgent need for a specialized treatment for EGFRi-associated skin rash, which significantly affects cancer patients' quality of life. Currently, patients often resort to off-label use of antibiotics, steroids, or other medications, or even discontinuation of EGFRi therapy due to the severity of the skin toxicity.


Azitra is preparing to initiate a multicenter, randomized, controlled Phase 1/2 clinical trial by the end of 2024 to further evaluate the efficacy and safety of ATR-04 in treating dermal toxicity caused by EGFR inhibitors.


The company, which specializes in precision dermatology, leverages a proprietary platform that includes a microbial library and artificial intelligence to develop its therapies. While this recent advancement marks a positive step for Azitra, the company cautions that the potential benefits of the FDA's Fast Track Designation for ATR-04 are not guaranteed, and the successful completion of upcoming clinical trials remains uncertain.


This article is based on a press release statement from Azitra, Inc. and does not include any independent verification of the claims.


In other recent news, Azitra Inc. has made significant strides in various clinical trials and patent acquisitions. The biopharmaceutical company has commenced a Phase 1b clinical trial for ATR-12, a drug candidate aimed at treating Netherton syndrome, and received FDA clearance for a Phase 1/2 clinical trial of ATR-04, a potential treatment for skin rash associated with certain cancer therapies. The company also secured patents in the U.S., Canada, and China for a filaggrin-secreting strain of Staphylococcus epidermidis, aimed at treating atopic dermatitis and other skin conditions.


In a capital restructuring move, Azitra executed a 1-for-30 reverse stock split of its common stock, reducing the number of its shares in circulation. The company continues to advance its product candidates ATR-04 and ATR-12, with plans to submit an Investigational New Drug application to the FDA for a Phase 1b clinical trial for ATR-04.


These recent developments underline Azitra's commitment to precision dermatology and its efforts to address unmet medical needs in skin disease treatment. The company's progress is marked by its robust intellectual property portfolio, its strategic restructuring, and its ongoing clinical trials.


InvestingPro Insights


Azitra Inc. (NYSE American: AZTR) has been in the spotlight for receiving FDA Fast Track Designation for its ATR-04 product candidate, but a deeper look into the company's financial health is crucial for investors considering its stock. Two notable InvestingPro Tips for AZTR highlight the company's financial challenges: AZTR is quickly burning through cash, and its short-term obligations exceed its liquid assets. This information is particularly relevant as the company prepares for a multicenter Phase 1/2 clinical trial, which could significantly impact its cash flow and liquidity.


From a data perspective, the company's market capitalization stands at a modest $4.32 million, and it has a negative P/E ratio of -0.04, reflecting the market's concerns about its profitability. Additionally, the gross profit margin for the last twelve months as of Q2 2024 is at 100%, indicating that while the company can generate profit on its revenue, its operating income margin is deeply negative at -2511.47%. This suggests that despite generating gross profit, the company's operational costs are exceedingly high, leading to substantial losses.


Investors should also note that AZTR's stock price has fallen significantly over the last year, with a one-year price total return of -98.95%. This performance may raise concerns about the stock's volatility and the company's ability to recover from current challenges.


For those interested in a more detailed analysis, there are additional InvestingPro Tips available that can provide further insight into AZTR's financial and market performance. These tips can be found at https://www.investing.com/pro/AZTR.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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