Algernon Pharmaceuticals Inc. (CSE:AGN, OTCQB:AGNPF) has said it is considering the potential spin-off of its NP-120 (Ifenprodil) chronic cough research program.
The company said it has engaged Maxim Group LLC to provide financial advisory and investment banking services with a focus on identifying and evaluating potential mergers and acquisitions (M&A) and strategic opportunities including the potential spin-off.
Ifenprodil, an N-methyl-D-aspartate (NMDA) receptor antagonist, targets the NMDA-type subunit 2B (GluN2B), which prevents glutamate signaling. It is a potential first-in-class treatment for chronic cough, believed to interfere with central signaling in the brain, thereby suppressing the urge to cough.
In a statement, Christopher J. Moreau, Algernon Pharma's CEO commented: "We are very pleased to be working with Maxim, and we are especially interested in the potential to achieve significant value for our Ifenprodil asset and for our shareholders, through a spin-off transaction."
Moreau emphasized the potential of Ifenprodil, citing successful acquisitions of similar treatments by pharmaceutical giants in the past.
Algernon's decision to advance its research to a Phase 2b cough study was based on positive results from a Phase 2a study on idiopathic pulmonary fibrosis (IPF) and chronic cough. The data revealed significant reductions in cough count, both in the 24-hour period and when patients were awake.
The global chronic cough market, according to Data Bridge Market Research, was valued at US$6.15 billion in 2021 and is projected to reach US$11.38 billion by 2029. Previous acquisitions by Merck & Co. and GSK PLC underscore the demand for improved therapies in the sector.
Algernon has enlisted the expertise of Dr Jacky Smith, a professor of Respiratory Medicine, and Dr Peter Dicpinigaitis, a specialist in Internal Medicine and Pulmonary Diseases, to guide their research on chronic cough.
Chronic cough is a debilitating condition, often impacting quality of life and leading to various complications. Algernon aims to address this through its experimental antitussive Ifenprodil, which acts centrally, engaging multiple receptors and potentially achieving better outcomes than previous treatments.
Algernon Pharma is a Canadian clinical-stage drug development amd repurposing company focused on investigating drugs for unmet global medical needs.
In addition to its chronic cough research program, the company has active programs for idiopathic pulmonary fibrosis and chronic kidney disease, as well as a subsidiary called Algernon NeuroScience that explores psychedelic treatments for stroke and traumatic brain injury using a proprietary form of psychedelic DMT.
Contact the author at jon.hopkins@proactiveinvestors.com