Pharma Company Receives Notice from Japanese Patent Office

Algernon Pharmaceuticals Inc. (AGN:CSE; AGNPF:OTCQB; AGN0:XFRA) received a notice of allowance from the Japanese Patent Office, and its patent application for its flagship treatment for chronic kidney disease has been widely accepted as safe in Japan for 25 years.

Notice of Allowance

Algernon Pharmaceuticals Inc. has received a notice of allowance from the Japanese Patent Office (JPO) for its patent application 2021-522114. The patent application is titled "Compositions and Methods for Treating Chronic Kidney Disease" and is for its lead chronic kidney disease (CKD) program drug NP-251 (Repirinast).

The patent claims the administration of Repirinast, which can be used alone or in combination with telmisartan, for use in the prevention and treatment of renal fibrosis. Telmisartan is a drug used to treat high blood pressure, heart failure, and diabetic kidney disease. The company's lead candidate for the treatment of CKD, Repirinast, has been shown to reduce fibrosis by 51% with statistical significance and has been shown to be an additive benefit to telmisartan in a unilateral ureteral obstruction mouse model.

Algernon's intellectual property strategy for its repurposed drug program includes protecting its compounds by filing patent applications, which include the method of use, dosing, and formulation, and for new composition-of-matter patents based on novel salt forms.

According to Christopher J. Moreau, the CEO of Algernon, " This is the first allowance notice received from the JPO by Algernon for one of the drugs being investigated under our innovative drug repurposing program and is further validation of our intellectual property strategy. What is also noteworthy is that Repirinast was originally developed and approved in the Japanese market for the treatment of asthma, and so this notice of allowance is even more meaningful."

The drug was originally developed by Mitsubishi Tanabe Pharma, and sold under the name Romet for the treatment of asthma for over 25 years.

Why Pharmaceuticals? 

According to Evaluate, 2021 saw an enormous amount of money directed at drug development. Readers may find this unsurprising because of the pandemic, but 2022 saw a dramatic plateau in spending on drug development. Astrazeneca and Sanofi were the only two companies on the chart that showed an increase in development. However, some companies, such as Moderna, are reinvesting profits gained during the pandemic, and Regeneron is also putting money into new revenue streams.

Additionally, companies like Johnson and Johnson are showing more earnings than analysts predicted, according to MRP. Johnson and Johnson is not the only company seeking out more innovative business models in the wake of the pandemic.

Catalyst

Algernon has achieved positive Phase 2a data for both the indications of Idiopathic Pulmonary Fibrosis and chronic cough. The company is the first in the world to investigate the psychedelic drug DMT for stroke using Algernon's methods. The company is also cost-effective in terms of drug repurposing.

Algernon is currently engaged in a Phase 1 DMT study for stroke, with data pending. The company has established a subsidiary for DMT research known as Algernon NeuroScience. Algernon Neuro has filed a Form 1-A offering statement with the US Securities and Exchange Commission seeking qualifications to raise up to US$10 million for Algernon Neuro by offering up to 37.5% of its common shares with majority ownership residing with Algernon Pharma under a Tier 2 Regulation A+ offering. The funds raised will be directed towards research, development, and program management costs related to the completion of Phase 1 and 2 DMT stroke study.

Ownership and Share Structure

Management and directors own approximately 5% of the company. 

In terms of institutions, the Canadian firm Alpha North Asset Management owns 13.15% with 1.27 million shares of the company. Palos Management Inc. owns 1.24% with 0.12 million shares. Algernon reports no strategic investors.

Algernon has a market cap of CA$1.56 million. There are 9.65 million share outstanding, and 9.15 million free float shares. They trade in the 52 week period between CA$0.19 and CA%1.46.

The company reports that it has CA$0.5 million in the bank as of March 1, 2023. The company has a monthly burn rate of approximately CA$80k net clinical trial and research costs.

Important Disclosures:

1. Algernon Pharmaceuticals Inc. are billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000. In addition, Algernon Pharmaceuticals Inc. is an affiliate of has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Algernon Pharmaceuticals Inc.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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