ATLANTA - Dogwood Therapeutics, Inc. (NASDAQ:DWTX), a biopharmaceutical company specializing in non-opioid pain treatments, has announced the initiation of a Phase 2b clinical trial for Halneuron®, aimed at treating neuropathic pain resulting from chemotherapy. The company, which has seen its stock surge over 140% year-to-date according to InvestingPro data, currently appears fairly valued based on comprehensive analysis. The trial, titled HALT-CINP (Halneuron® Treatment of Chemotherapy-Induced Neuropathic Pain), marks a significant step in the development of this targeted therapy.
Halneuron® is designed to inhibit the NaV 1.7 sodium channel, which plays a crucial role in pain transmission. Greg Duncan, Dogwood’s Chairman and CEO, expressed confidence in the drug’s specificity and potency, which may allow for lower dosing and reduced side effects compared to other NaV 1.7 inhibitors.
The drug has previously shown a statistically significant reduction in cancer-related pain in a Phase 2 trial and has been evaluated in over 700 patients across multiple studies. Importantly, Halneuron® has not demonstrated addiction potential, a key consideration in pain management. While the company maintains a strong liquidity position with a current ratio of 5.21 and operates with moderate debt levels, InvestingPro analysis indicates the company is not yet profitable, with a return on assets of -25%.
The current trial aims to enroll 100 patients by the fourth quarter of 2025, with an interim analysis planned for the same period. This analysis will provide insights that could lead to adjustments in the trial design to enhance outcomes, according to R. Michael Gendreau, M.D., Ph.D., Chief Medical Officer at Dogwood.
In addition to its analgesic program, Dogwood is developing antiviral therapies. Its antiviral program includes IMC-1 and IMC-2, which combine anti-herpes antivirals with the anti-inflammatory agent celecoxib, targeting conditions like fibromyalgia and Long-COVID.
Dogwood’s forward-looking statements indicate plans for continued clinical studies and potential adjustments based on upcoming trial results. These statements are subject to risks and uncertainties that could affect the timing and outcomes of the research. With analysts setting price targets ranging from $5 to $30, investors seeking deeper insights can access comprehensive analysis and 8 additional key ProTips through InvestingPro’s detailed research reports, available as part of their coverage of over 1,400 US stocks. This news is based on a press release statement from Dogwood Therapeutics.
In other recent news, Dogwood Therapeutics has announced a registered direct offering that is expected to raise approximately $4.8 million. The proceeds will be used to advance the clinical development of Halneuron®, a candidate for treating chemotherapy-induced neuropathic pain, as well as for general corporate purposes. Additionally, Dogwood has executed a financial restructuring by converting a $19.5 million loan from its main investor, CK Life Sciences, into preferred equity. This move eliminates all existing debt from the company’s balance sheet, potentially enhancing its investment appeal. The restructuring allows Dogwood to focus on progressing its Phase 2b trial of Halneuron® without the burden of debt repayments. Dogwood’s research pipeline also includes an antiviral program with IMC-1 and IMC-2, targeting diseases associated with herpesvirus reactivation. Both IMC-1 and IMC-2 are advancing in clinical trials for fibromyalgia and Long-COVID, respectively. Maxim Group LLC is serving as the sole placement agent for the recent stock offering.
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