GUELPH, ON - Zentek Ltd. (Nasdaq:ZTEK)(TSX-V:ZEN) today announced that its subsidiary, Triera Biosciences Ltd., is fast-tracking the development of a treatment and prevention strategy for the highly pathogenic avian influenza (HPAI), in light of the ongoing global H5N1 outbreak. Initial laboratory tests have shown promising results for a universal influenza aptamer with strong binding affinity, potentially better than treatments for SARS-CoV-2.
The World Health Organization has expressed significant concern over the H5N1 situation, which has seen the virus spread to livestock and detected in the milk supply, posing a serious public health threat. The mortality rate for H5N1 in humans has historically been as high as 52%.
To address this, Triera has prioritized the development of a universal aptamer that can neutralize multiple subtypes of the influenza virus by blocking the HA surface protein, which is necessary for the virus to infect healthy cells.
Triera's approach leverages the same multivalent aptamer technology used in their SARS-CoV-2 research, which has shown improved protection over leading monoclonal antibodies in animal models. The company has selected lead aptamer sequences with binding affinities of less than one nanomolar, indicating a strong potential for neutralizing the virus. In vivo testing is set to begin immediately to assess the neutralization and therapeutic potential of these candidates.
A provisional patent has been filed for this influenza virus-targeting aptamer, and Triera plans to provide regular updates to government agencies involved in managing the H5N1 response. The company aims to develop a comprehensive avian flu management system that includes diagnostics, prophylaxis, and therapeutics based on their aptamer technology.
Triera's advisor, Dr. Matthew Miller, supports the decision to prioritize avian influenza research, citing the potential for a timely and efficient solution to mitigate a pandemic outbreak. Greg Fenton, CEO of Zentek and Triera, highlighted the company's ability to rapidly respond to outbreaks and the long-term potential to address various infectious diseases using their platform.
Zentek is known for its intellectual property technology and the development of novel products through its patented ZenGUARD™ technology, with applications in surgical masks and HVAC systems. The company's collaboration with McMaster University has positioned it to potentially reduce the time and cost associated with developing new treatments.
This news is based on a press release statement.
InvestingPro Insights
As Zentek Ltd. (ZTEK) advances its efforts to combat the H5N1 avian influenza, investors and stakeholders are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Zentek's market capitalization currently stands at approximately $104.6 million. Despite the company's innovative approach and promising developments in the medical field, ZTEK is grappling with significant financial challenges. The company's revenue for the last twelve months as of Q3 2024 was a mere $0.03 million, with a stark revenue decline of 85.06% during the same period. This has contributed to a negative gross profit margin of -841.52%, underscoring the financial hurdles the company faces.
InvestingPro Tips reveal that analysts are not expecting ZTEK to turn a profit this year. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, stands at -12.03, reflecting investor skepticism about future profitability. Furthermore, ZTEK's operations are marked by a moderate level of debt and weak gross profit margins, which may raise concerns about the company's financial sustainability.
Despite these financial challenges, ZTEK remains a niche player in its industry, with liquid assets exceeding short-term obligations, suggesting some degree of financial resilience. Additionally, the company has seen a strong return over the last five years, which may be indicative of its long-term growth potential. For investors interested in a deeper analysis, there are over 10 additional InvestingPro Tips available, which can be accessed for an in-depth understanding of ZTEK's financial position and market outlook. To gain further insights and take advantage of these expert analyses, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While Zentek's scientific advancements are a key focal point, these financial metrics and insights from InvestingPro provide a broader context for evaluating the company's potential risks and opportunities in the market.
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