CARLSBAD, CA - Palisade Bio, Inc. (NASDAQ:PALI), a biopharmaceutical company, announced its progress in developing a novel treatment for ulcerative colitis (UC), PALI-2108, which is set to enter Phase 1 clinical trials later this year. The announcement was made during an oral presentation at the IBD Innovate: Product Development for Crohn’s & Colitis conference in Cambridge, MA, on April 9-10, 2024.
PALI-2108 is an orally administered, colon-specific phosphodiesterase-4 (PDE4) inhibitor prodrug, which is being developed for patients suffering from moderate-to-severe UC. Dr. Mitch Jones, Chief Medical Officer of Palisade Bio, highlighted the drug's potential and the company's strategy for late-stage development. Palisade Bio's research partner, Giiant Pharma, Inc., was represented by CEO Christophe Mellon, who also contributed to the presentation.
The development of PALI-2108 has been supported by a $500,000 research program funding agreement with Giiant through the IBD Ventures program of the Crohn’s & Colitis Foundation. This foundation is committed to expediting the discovery and development of products that can meet the unmet needs of patients with inflammatory bowel disease (IBD).
Palisade Bio is focused on creating targeted therapeutics for autoimmune, inflammatory, and fibrotic diseases, aiming to transform the treatment landscape. The company has generated a growing body of data for PALI-2108 and remains on track with its clinical study timeline.
This update on PALI-2108's development is based on a press release statement by Palisade Bio, Inc.
InvestingPro Insights
As Palisade Bio, Inc. (NASDAQ:PALI) forges ahead with the development of its ulcerative colitis treatment, PALI-2108, investors may be keen to understand the financial health and market sentiment surrounding the company. Here are some key insights based on the latest data and InvestingPro Tips:
InvestingPro Data shows that Palisade Bio currently holds a market capitalization of $4.61 million USD, with a negative price-to-earnings (P/E) ratio of -0.42 for the last twelve months as of Q4 2023. This indicates that the company has not been profitable during this period. Additionally, the company's price/book ratio stands at 0.45, suggesting that the stock is trading below the company's book value, which can be a sign of undervaluation.
InvestingPro Tips reveal that while Palisade Bio holds more cash than debt, providing some financial stability, the company is quickly burning through cash. Analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield. On a positive note, the company's liquid assets exceed its short-term obligations, which is a reassuring sign of the company's ability to meet its short-term liabilities.
Despite these challenges, analysts anticipate sales growth in the current year, which could be a silver lining for the company as it progresses with its clinical trials. However, the stock price has performed poorly over the last decade and has fallen significantly over the last year and five years, reflecting the market's response to the company's financial performance and outlook.
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