By Chris Wack
Shares of Palisade Bio doubled to reach $1.43 following the announcement of a licensing agreement with Giiant Pharma. Despite hitting a 52-week low of 55 cents on Aug. 16, the stock has experienced a 76% decline in the last year.
The newly secured license grants Palisade Bio exclusive worldwide rights to the development, manufacturing, and commercialization of Giiant’s targeted pro-drug platform. This includes Giiant’s precision delivery technology platform and various product candidates. One notable asset in development is GT-2108, an orally administered, gut-restricted, colon-specific phosphodiesterase-4 inhibitor aimed at helping patients with moderate-to-severe ulcerative colitis.
Furthermore, the license provides access to another program called GT-1908, which Palisade Bio intends to develop as a second treatment option. This program targets fibro stenotic Crohn’s Disease through the utilization of an oral PDE4 compound.
According to the terms of the license agreement, Palisade Bio will cover a portion of the development costs until the first approval of a clinical trial. Afterward, the company will bear all development, manufacturing, and commercialization expenses. Additionally, Palisade Bio will make milestone payments and royalty payments based on sales.