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Quoin Pharmaceuticals partners with UCC for drug delivery tech

EditorAhmed Abdulazez Abdulkadir
Published 12-06-2024, 10:18 pm

ASHBURN, Va. - Quoin Pharmaceuticals Ltd. (NASDAQ: QNRX), a specialty pharmaceutical company, has announced a research partnership with the School of Pharmacy at University College Cork (UCC) in Ireland to develop new topical formulations of the drug Rapamycin (sirolimus) for rare and orphan diseases. The collaboration, revealed on Wednesday, will leverage UCC's proprietary dissolvable microneedle technology to enhance the local delivery of rapamycin, potentially improving its effectiveness for several clinical targets.

The agreement outlines that Quoin will finance a research program at UCC to create a range of topical rapamycin formulations. Upon completion of the research phase, Quoin will have the option to proceed with the clinical development of these formulations.

Rapamycin is an immunosuppressive drug that targets the mTOR cellular signaling pathway, which has been explored as a potential treatment for various rare and orphan diseases. However, its effectiveness as a topical treatment has been limited by its molecular properties, including poor solubility. UCC's dissolvable microneedles are designed to penetrate the skin and deliver drugs effectively, offering advantages such as painless administration and reduced risk of infection.

Dr. Michael Myers, CEO of Quoin, expressed enthusiasm for the partnership, citing UCC's strong track record in dermal drug delivery technologies. He mentioned that this collaboration could lead to proprietary topical rapamycin formulations for Quoin to potentially assess in clinical settings.

Quoin Pharmaceuticals focuses on developing treatments for rare and orphan diseases, with a pipeline comprising four products targeting conditions like Netherton Syndrome, Peeling Skin Syndrome, and others.

This partnership announcement is based on a press release statement and contains forward-looking statements regarding the potential outcomes of the research agreement. These statements are subject to risks and uncertainties, and actual results could differ materially from those projected.

In other recent news, Quoin Pharmaceuticals has released its Q4 progress report and financial results for 2023. The company has reported positive initial data from their clinical trials for Netherton syndrome and received FDA clearance for protocol amendments. This has enabled them to increase their study size, change dosing frequency, and lower recruitment age.

Quoin Pharmaceuticals has also established nine commercial partnerships for product distribution and raised $6.5 million through a public offering. An additional $8 million equity line of credit has been arranged, contributing to their total cash and marketable securities of approximately $10.7 million as of December 31, 2023.

Despite reporting a net loss of $8.7 million for the year, Quoin Pharmaceuticals' funding is expected to last into the second half of 2025. The company is actively seeking mergers and acquisitions opportunities, particularly focusing on the rare and orphan disease space.

InvestingPro Insights

In light of Quoin Pharmaceuticals Ltd.'s recent announcement about their partnership with University College Cork, investors may be interested in the financial health and market performance of the company. Quoin, with a market capitalization of just $2.94 million, is navigating the challenging terrain of pharmaceutical development for rare and orphan diseases. According to the latest data, Quoin's price-to-book ratio stands at 0.32 as of the last twelve months leading up to Q1 2024, indicating that the company's stock may be undervalued relative to its assets.

However, Quoin's journey hasn't been without its financial struggles. The company has an operating income of approximately -$9.06 million, reflecting significant expenses in its pursuit of innovative treatments. Moreover, the stock has experienced a sharp decline, with a 1-year price total return of -88.16%, highlighting the volatile nature of investing in the biotech sector.

For those considering an investment in Quoin Pharmaceuticals, it is worth noting that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility in the near term. Additionally, the company's liquid assets exceed its short-term obligations, offering a degree of resilience in managing its cash flow. These InvestingPro Tips suggest that while the company faces challenges, it also possesses some financial strengths that could be leveraged as it advances its research initiatives.

Investors looking to gain a deeper understanding of Quoin Pharmaceuticals' financials and market prospects can find additional InvestingPro Tips at https://www.investing.com/pro/QNRX. There are 11 more tips available, which could provide valuable insights into the company's potential. For those interested in accessing these tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching your investment strategy with comprehensive data and analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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