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Lantern Pharma advances cancer diagnostic tool

EditorNatashya Angelica
Published 10/07/2024, 16:50
LTRN
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DALLAS - Lantern Pharma (NASDAQ: LTRN), a clinical-stage biopharmaceutical company, announced significant progress in the development of a diagnostic tool for its cancer drug candidate LP-184. The company reported the advancement of a diagnostic based on qRT-PCR technology to measure PTGR1 RNA levels in tumor samples, which may predict sensitivity to LP-184.

The company's recent confirmation of PTGR1 as a key biomarker is a pivotal step in the development of a companion diagnostic to aid in patient selection for clinical trials. LP-184 is being developed as a precision oncology drug with potential applications across various solid tumors.

Lantern Pharma intends to further develop and validate the assay for use in later-stage clinical trials. The use of biomarkers in clinical trials has been linked to increased trial success rates, as indicated by a 2021 study published in Cancer Medicine. This study found a significant correlation between the use of biomarkers and the success of clinical trials, particularly in breast cancer, melanoma, and lung cancer.

Panna Sharma, CEO of Lantern Pharma, emphasized the significance of this development in enriching future LP-184 clinical trials with patients likely to benefit from the treatment. The company's approach aligns with precision medicine best practices, aiming to enhance the chances of successful clinical outcomes.

Lantern Pharma's strategy includes leveraging artificial intelligence to expedite drug development and improve patient outcomes. The company plans to implement the PTGR1 assay in upcoming clinical trials for LP-184, which has received Orphan Drug and Rare Pediatric Disease Designations from the FDA for its potential use in treating malignant gliomas, pancreatic cancer, and atypical teratoid rhabdoid tumors.

The information in this article is based on a press release statement from Lantern Pharma.

In other recent news, Lantern Pharma has made significant strides in the field of cancer therapy. The company secured a Japanese patent for its drug candidate LP-284, designed for specific blood cancers. This addition to their intellectual property portfolio follows the U.S. patent awarded in April 2023, with the company looking forward to similar protections in Europe, China, Australia, Canada, and Korea.

LP-284, developed with Lantern’s RADR® AI platform, has the potential to benefit 40,000 to 80,000 blood cancer patients annually. The drug has already been administered to patients in a U.S. clinical trial that began in 2023.

In another development, Lantern Pharma received regulatory clearance to conduct Phase 2 clinical trials of its drug LP-300 in Japan and Taiwan. The trial focuses on treating non-small cell lung cancer in never-smokers, a significant patient group in East Asia.

On the financial front, Lantern Pharma reported a net loss of $4.2 million for Q4 and $15.96 million for the full year of 2023, despite a strong cash position of approximately $41.3 million. Research and development expenses rose to $11.9 million in 2023 due to increased research and payroll costs.

Lastly, Lantern Pharma disclosed plans to launch clinical trials for Starlight Therapeutics, a development for CNS cancers, in the second half of the year. The market potential for its LP-184 indications is estimated to be between $10 billion to $12 billion-plus. These are the recent developments at Lantern Pharma.

InvestingPro Insights

In the wake of Lantern Pharma's announcement regarding their diagnostic tool for cancer drug candidate LP-184, investors and industry observers are closely monitoring the company's financial health and market performance. InvestingPro data reveals a market capitalization of $46.05 million, underscoring the relatively small size of the company in the biopharmaceutical space. The price-to-earnings (P/E) ratio stands at -2.62, reflecting investor sentiment about the company's earnings potential and current valuation.

One of the InvestingPro Tips points out that Lantern Pharma holds more cash than debt on its balance sheet, which may provide the company with a buffer to fund ongoing research and development activities without the immediate need for external financing.

However, this is juxtaposed with the company's rapid cash burn and weak gross profit margins, which could be a concern for long-term sustainability if not managed effectively. Moreover, the company's net income is expected to drop this year, and analysts do not anticipate profitability within this timeframe.

The recent price performance of Lantern Pharma's stock has been quite volatile, with a one-month price total return of -20.74% and a three-month price total return of -44.7%, indicating significant investor caution or response to market conditions. Despite these challenges, the company's liquid assets exceed its short-term obligations, which may offer some reassurance to investors about its ability to meet immediate financial liabilities.

For those interested in a deeper dive into Lantern Pharma's financial metrics and strategic outlook, InvestingPro offers a comprehensive set of additional tips. These tips provide valuable insights into the company's operational and financial nuances, which could be particularly relevant in light of their recent scientific advancements. Readers can access these additional tips at https://www.investing.com/pro/LTRN and may take advantage of the promo code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are currently 11 additional InvestingPro Tips available, offering a wealth of information for those looking to make informed decisions about their investments in Lantern Pharma.

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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