OKYO Pharma Receives $1.4 Million in Non-Dilutive Funding

Rhea-AI Summary

OKYO Pharma (NASDAQ: OKYO) has secured $1.4 million in non-dilutive funding to advance its innovative pipeline, particularly focusing on its lead program OK-101 for treating neuropathic corneal pain (NCP). The company, which develops therapies for NCP - a severe ocular condition without FDA-approved treatments - and inflammatory dry eye disease (DED), will use this funding to support ongoing research and development initiatives.

The funding strengthens OKYO's ability to progress its development programs without diluting shareholder value. CEO Dr. Gary S. Jacob emphasized that this financial boost will contribute significantly to their mission of developing groundbreaking treatments for ophthalmic diseases while maintaining fiscal responsibility and creating value for shareholders.

Positive

• Secured $1.4 million in non-dilutive funding, preserving shareholder value
• Funding strengthens R&D capabilities for OK-101 program
• Targeting neuropathic corneal pain (NCP), an untapped market with no FDA-approved treatments
• Operating in the multi-billion-dollar dry eye disease (DED) market

Negative

• None.

Insights

Financial Analyst

The secured $1.4 million non-dilutive funding represents a strategic win for OKYO Pharma, particularly given its $35 million market cap. Non-dilutive funding is especially valuable for small-cap biotech companies as it preserves existing shareholder value while extending the cash runway without adding debt obligations.

The funding's targeting of OK-101 development for neuropathic corneal pain is noteworthy for two reasons: First, it addresses an untapped market with no FDA-approved treatments, potentially positioning OKYO for first-mover advantage. Second, their simultaneous pursuit of the inflammatory dry eye disease market, valued in the billions, creates a dual-opportunity pipeline that could significantly expand their market potential.

For context, small-cap biotech companies typically burn through $500,000 to $2 million per month during clinical development phases. This funding could therefore extend their operational runway by several months, providing important breathing room for clinical development without immediate capital raising pressure. The non-dilutive nature of the funding may also signal to the market that the company has access to alternative financing channels, potentially strengthening their position for future capital raises.

Medical Research Analyst

The $1.4 million funding directed towards OK-101 development could accelerate progress in addressing neuropathic corneal pain, a severely underserved condition that significantly impacts patient quality of life. The absence of FDA-approved treatments for NCP represents not just a market opportunity, but a critical medical need, as patients currently rely on off-label treatments with varying degrees of effectiveness.

The strategic positioning in both NCP and inflammatory dry eye disease markets demonstrates scientific synergy in OKYO's pipeline. While DED represents a mature market with established treatments, NCP remains an untapped opportunity. The successful development of OK-101 could establish OKYO as a pioneer in NCP treatment, potentially setting new standards in ocular pain management.

From a development perspective, targeting both conditions allows for potential operational efficiencies in clinical trials and regulatory processes, as there may be overlapping patient populations and similar safety monitoring requirements. This approach could optimize resource utilization while maximizing the potential medical impact of their research programs.

LONDON and NEW YORK, Jan. 22, 2025 (GLOBE NEWSWIRE) -- OKYO Pharma Limited (NASDAQ: OKYO), a clinical-stage biopharmaceutical company developing innovative therapies for the treatment of neuropathic corneal pain (NCP), a severe ocular condition without an FDA approved therapy, and for inflammatory dry eye disease (DED), a multi-billion-dollar market, is pleased to announce that it has received $1.4 million in non-dilutive funding. This significant financial funding strengthens the Company’s ability to advance its innovative pipeline without diluting shareholder value.

The funding will be strategically allocated to support ongoing research and development initiatives, with particular emphasis on fueling progress with OKYO’s lead program, OK-101 focused on treating NCP, a major unmet medical need.

“Securing $1.4 million in non-dilutive funding marks an important milestone for OKYO Pharma. This financial boost will significantly contribute to our mission of developing groundbreaking treatments for ophthalmic diseases,” commented Dr. Gary S. Jacob, CEO of OKYO Pharma. “Importantly, this funding supports our ability to continue creating value for our shareholders while advancing our clinical programs. We remain committed to driving innovation and delivering solutions that improve patient outcomes.”

The infusion of non-dilutive funding underscores OKYO Pharma’s commitment to maintaining fiscal responsibility while pursuing transformative therapies that address critical unmet medical needs.

About NCP
Neuropathic corneal pain (NCP) is a condition that causes pain and sensitivity of the eyes, face, or head. The exact cause of NCP is unknown but thought to result from nerve damage to the cornea combined with inflammation. NCP, which can exhibit as a severe, chronic, or debilitating condition in patients suffering from a host of ophthalmic conditions, is presently treated by various topical and systemic treatments in an off-label fashion. Notably, there is no FDA approved drug to treat this debilitating condition.

About OK-101
OK-101 is a lipid conjugated chemerin peptide agonist of the ChemR23 G-protein coupled receptor which is typically found on immune cells of the eye responsible for the inflammatory response, as well as on neurons and glial cells in the dorsal root ganglion. OK-101 was developed using a membrane-anchored-peptide technology to produce a novel long-acting drug candidate for treating dry eye disease. OK-101 has been shown to produce anti-inflammatory and pain-reducing activities in mouse models of dry eye disease and corneal neuropathic pain (NCP), respectively, and is designed to combat washout through the inclusion of the lipid anchor built into the drug molecule to potentially enhance the residence time of OK-101 within the ocular environment. OK-101 showed clear statistical significance in multiple endpoints in a recently completed Phase 2, multi-center, double-masked, placebo-controlled trial of OK-101 to treat DED, and is presently being evaluated in a randomized, placebo-controlled, double-masked Phase 2 trial to treat 48 NCP patients.

About OKYO
OKYO Pharma Limited (NASDAQ: OKYO) is a clinical stage biopharmaceutical company developing innovative therapies for the treatment of NCP and DED, with ordinary shares listed for trading on the NASDAQ Capital Market. OKYO is focused on the discovery and development of novel molecules to treat NCP and inflammatory DED. In addition to the completed Phase 2 trial of OK-101 to treat DED patients, OKYO is also currently evaluating OK-101 to treat NCP patients in a Phase 2 trial.

For further information, please visit www.okyopharma.com.

Enquiries:

OKYO Pharma Limited	Gary S. Jacob, Chief Executive Officer	917-497-7560
Business Development & Investor Relations	Paul Spencer	+44 (0)20 7495 2379

FAQ

What is the amount of non-dilutive funding received by OKYO Pharma (NASDAQ: OKYO) in January 2024?

OKYO Pharma received $1.4 million in non-dilutive funding.

How will OKYO Pharma use the $1.4 million funding?

The funding will support ongoing research and development initiatives, particularly focusing on the OK-101 program for treating neuropathic corneal pain (NCP).

What are the main therapeutic areas OKYO Pharma is targeting?

OKYO Pharma is targeting neuropathic corneal pain (NCP), which has no FDA-approved therapy, and inflammatory dry eye disease (DED), a multi-billion-dollar market.

What is the significance of non-dilutive funding for OKYO shareholders?

Non-dilutive funding allows OKYO to advance its pipeline without diluting existing shareholder value, maintaining their equity stake in the company.