Shares in Poolbeg Pharma PLC (AIM:POLB, OTCQB:POLBF) rose 8% in early trading after the company announced a partnership with an unnamed Nasdaq-listed biopharmaceutical firm.
The collaboration aims to develop a new drug for a metabolic condition using Poolbeg's specialised oral delivery system. Poolbeg will receive funding to create a prototype of the drug with its new partner.
"We view this partnership as a highly encouraging validation of Poolbeg’s oral delivery technology which could bring with it a potential catalyst for the share price if a licensing deal materialises," said corporate broker Cavendish.
"Whilst the disease indication has been undisclosed, we note that new drugs for the treatment of metabolic conditions have garnered significant market interest in recent months."
Metabolic conditions occur together, increasing the risk of heart disease, stroke and type 2 diabetes. They include increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol or triglyceride levels.
Drugs used to treat these lifestyle-inflicted ailments are the latest super-blockbusters such as GLP-1 drugs Ozempic and Trulicity and Munjaro for diabetes.
At 8.50 am, the shares were up 0.56p at 7.6p. Cavendish thinks they are worth as much as 19p each.