Alterity Therapeutics Ltd (NASDAQ:ATHE) (ASX:ATH) surged 58% in pre-market trade in New York as the company announced the award of a new patent, which advances its journey towards finding a clinical candidate to treat major neurodegenerative diseases, such as Alzheimer's and Parkinson's.
The company has been granted a new composition of matter patent by the United States Patent and Trademark Office (USPTO).
A broad monopoly
The patent secures a "broad monopoly" over a new class of iron chaperones, a technology capable of "redistributing excess iron in the central nervous system".
Alterity's lead candidate ATH434 is the first of a new generation of small molecules designed to inhibit pathological proteins implicated in neurodegenerative conditions by restoring normal iron balance in the brain and the company is is on track to launch the Phase 2 trial of the drug by the end of calendar 2021.
"This new patent is an important part of our corporate strategy to expand our portfolio of potential disease modifying treatments for neurodegenerative diseases affecting many individuals," said Dr David Stamler, Alterity's CEO in a statement.
"The newly covered compounds target excess brain iron that is increased in these conditions, and we hope to identify a new clinical candidate by the time we get results from our lead clinical program."
The scientific investigation of ATH434, along with results from the Phase 2 study, will augment the development and optimization of novel compounds expected to emerge from the new patent, said the company.
Shares on the Nasdaq added over 58% on Thursday to US$2.06.
Contact the author at giles@proactiveinvestors.com