Zacks Small Cap Analysis – NRBO: DA-1726 Exhibits Superiority to Survodutide in Pre-Medical Fashions… – Cyber Tech

By David Bautz, PhD

NASDAQ:NRBO

READ THE FULL NRBO RESEARCH REPORT

Enterprise Replace

DA-1726 Displays Superiority to Survodutide in Pre-Medical Fashions

On June 22, 2024, NeuroBo Prescribed drugs, Inc. (NASDAQ:NRBO) introduced that pre-clinical knowledge for DA-1726, the corporate’s twin oxyntomodulin (OXM) analog agonist of glucagon-like peptide-1 receptor (GLP1R) and glucagon receptor (GCGR), demonstrated superiority in weight reduction, retention of lean physique mass, and lipid-lowering results in comparison with survodutide. The info was introduced in a poster on the American Diabetes Affiliation (ADA) 84th Scientific Periods. A duplicate of the poster could be discovered right here.

The next picture reveals the completely different pre-clinical fashions utilized within the present examine. Food plan-induced overweight (DIO) mice have been used to judge the impact of DA-1726 and survodutide on physique weight reduction and fats mass loss whereas hyperlipidemic rats have been utilized to investigate the impact on DA-1726 and tirzepatide on plasma lipids.

Comparability with Survodutide on physique weight reduction

On this examine, DIO mice have been handled with 200 nmol/kg DA-1726 or 70 nmol/kg survodutide twice every week for 3 weeks. The next photos present the change in physique weight and meals consumption over the course of the three-week examine. Each the survodutide- and DA-1726-treated animals confirmed a statistically important lower in physique weight and meals consumption in comparison with the management mice. As well as, DA-1726 confirmed superior weight reduction efficacy in comparison with survodutde regardless of the truth that DA-1726-treated mice consumed extra meals.

DA-1726 additionally successfully lowered main plasma parameters (complete ldl cholesterol – T-CHO; triglycerides – TG; glucose – GLU) whereas considerably growing the expression of power expenditure associated genes in brown adipose tissue (BAT).

Comparability with Survodutide on fats mass loss

On this examine, DIO mice have been handled with 60 nmol/kg DA-1726 or 30 nmol/kg survodutide every day for 3 weeks. Just like the earlier examine, the next graphs present larger weight reduction within the DA-1726-treated animals in comparison with the survodutide-treated animals with comparable dietary consumption. Histological evaluation of fats mass additionally revealed a rise in beige or brown adipose-like cells in white adipose tissue, which helps the proposed mechanism of elevated power expenditure.

Wanting particularly at fats mass, the next graphs present that DA-1726 therapy resulted in a better discount in fats mass and the next share of lean mass preservation in comparison with survodutide therapy after two weeks of every day dosing.

Comparability with Tirzepatide on lipid-lowering

On this examine, hyperlipidemic rats have been handled with 500 nmol/kg DA-1726 or 50 nmol/kg tirzepatide twice every week for 3 weeks. The next graphs present that DA-1726 was simpler than tirzepatide in regulating lipid metabolism and suppressing weight achieve regardless of having comparable meals consumption.

General, these outcomes level to DA-1726 being a possible best-in-class asset, probably by way of the distinctive GLP-1 to glucagon receptor exercise ratio. The truth that the compound is probably superior to survodutide and has comparable weight reduction discount as tirzepatide may be very encouraging as the corporate appears to carve out a distinct segment within the weight problems market.

Section 1 Half 3 Examine Particulars

NeuroBo is presently conducting a Section 1 trial of DA-1726. Half 1 and a pair of of the trial are a single ascending dose (SAD – Half 1) and a number of ascending dose (MAD – Half 2) examine in overweight however in any other case wholesome people. We anticipate topline outcomes from Half 1 within the third quarter of 2024 and topline outcomes from Half 2 within the first quarter of 2025. We anticipate Half 3 of the Section 1 trial initiating within the third quarter of 2025 and topline outcomes from Half 3 being reported within the second half of 2026. The next slide offers an summary of Half 3, which can consider the efficacy and most titratable dose of DA-1726.

Monetary Replace

On June 24, 2024, NeuroBo introduced a personal placement of 4,325,701 shares of frequent inventory at a purchase order value of $3.93. As well as, the corporate performed a direct providing of 763,359 shares on the identical buy value. As well as, NeuroBo issued 5,089,060 Sequence A warrants and seven,633,591 Sequence B warrants with an train value of $3.93. The warrants will grow to be exercisable following shareholder approval of the issuance of shares upon train of the warrants. The Sequence A warrants will expire on the sooner of 12 months following shareholder approval or 60 days following the general public announcement of optimistic Section 1 MAD knowledge for DA-1726. The Sequence B warrants will expire on the sooner of 5 years following shareholder approval or six months following the general public announcement of optimistic Section 1 Half 3 knowledge for DA-1726.

Conclusion

The pre-clinical knowledge introduced by NeuroBo at ADA are very encouraging and demonstrates the potential best-in-class properties for DA-1726. We sit up for topline outcomes from Half 1 of the Section 1 scientific trial of DA-1726 within the third quarter of 2024 adopted by topline outcomes of Half 2 of the Section 1 trial within the first quarter of 2025. Following the current financing, the corporate is now sufficiently capitalized by way of the topline knowledge readout of Half 3 of the Section 1 trial. Now we have included the current financing into our mannequin, which has resulted in a slight lower in our valuation, nonetheless this doesn’t diminish our enthusiasm for the inventory or the potential for DA-1726. Our valuation is now $22 per share.

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