PharmaCyte Biotech Makes $7 Million Strategic Investment in MyMD, A Biopharmaceutical Company Focused on Inflammatory Disease
PharmaCyte Biotech has announced a $7 million strategic investment in MyMD Pharmaceuticals, a company focused on treating inflammatory diseases, age-related conditions, and autoimmune disorders. This investment is part of PharmaCyte's strategy to leverage its $65 million cash position to enhance stockholder value. MyMD's lead product, MYMD-1, has shown promising results in a Phase 2 clinical trial for sarcopenia, and the company plans to move forward with further clinical studies in collaboration with the FDA. Both companies express optimism about the potential for future collaboration and the benefits of combining their expertise and resources.
- PharmaCyte has sufficient cash reserves, approximately $65 million as of March 31, 2024.
- The $7 million investment diversifies PharmaCyte’s portfolio, aligning with its strategy to create shareholder value.
- MyMD's lead product, MYMD-1, showed positive results in a Phase 2 clinical trial for sarcopenia.
- Potential for further collaboration between PharmaCyte and MyMD could enhance development efforts.
- PharmaCyte’s Board of Directors has extensive experience in the public biotechnology markets.
- The investment in MyMD entails risk, as future clinical trials may not yield positive results.
- The collaboration's success depends on regulatory approvals and the potential for unforeseen delays.
- Substantial investment in external companies could divert focus from PharmaCyte’s in-house projects.
The $7 million investment by PharmaCyte Biotech in MyMD Pharmaceuticals represents a significant allocation of resources, especially given PharmaCyte’s reported cash position of approximately
However, prospective investors should note that the financial success of this investment is tightly linked to the continued positive development of MyMD's lead product, MYMD-1. Any setbacks in clinical trials or delays in FDA approvals could adversely affect the return on this investment. The strategic nature of the investment indicates potential future collaborations, which could further compound the returns or risks associated with this deal.
MyMD Pharmaceuticals has shown positive data from a 40-patient Phase 2 clinical trial for its lead product, MYMD-1, targeting sarcopenia, an age-related muscle loss condition. This is significant because it addresses a major unmet medical need in an aging population. While Phase 2 trials are promising, the path to market approval includes more extensive Phase 3 trials and continued FDA interactions. The involvement of PharmaCyte, with its expertise and financial support, may accelerate this process.
For retail investors, it's essential to understand that while the Phase 2 results are encouraging, the full clinical lifecycle, including potential regulatory hurdles, remains. Any approval or efficacy data in subsequent trials could dramatically influence MyMD's valuation and, consequently, the value of PharmaCyte's investment. The intersection of their technologies might also yield innovative outcomes in autoimmune and inflammatory diseases.
Second external investment in life sciences solidifies previously announced strategy to utilize significant cash position to create additional stockholder value
Chris Chapman, M.D., president and chief medical officer of MyMD, stated, “This investment comes at an important inflection point for MyMD, as we are actively preparing to continue our clinical studies in our lead product candidate, MYMD-1, following our positive data from our Phase 2 trial in sarcopenia. We are looking forward to potential collaboration with PharmaCyte, as its management and board have extensive experience in the public biotechnology markets. We believe that this strategic investment will also provide helpful insight as we continue to develop our technology.”
“Our investment in MyMD solidifies our commitment to our previously announced corporate strategy to identify significant outside opportunities where we can create value both through cash investment and our own expertise. MyMD’s approach to inflammation is unlike what is currently available and addresses significant unmet medical needs in this category. We believe we can contribute to its continued development, and we look forward to further collaboration and sharing in MyMD’s success. We anticipate continuing to seek out additional opportunities which we hope will ultimately result in marked value for PharmaCyte and its stockholders,” said Dr. Michael Abecassis, a member of the Company’s Board of Directors.
About MyMD
MyMD Pharmaceuticals, Inc. (Nasdaq: MYMD), a clinical stage pharmaceutical company committed to extending healthy lifespan, is focused on developing two novel therapeutic platforms that treat the causes of disease rather than only addressing the symptoms. MYMD-1 is a drug platform based on a clinical stage small molecule that regulates the immune system to control TNF-α, which drives chronic inflammation, and other pro-inflammatory cell signaling cytokines. MYMD-1 is being developed to delay aging, increase longevity, and treat autoimmune diseases. The Company’s second drug platform, Supera-CBD, is being developed to treat chronic pain, addiction and epilepsy. Supera-CBD is a novel synthetic derivative of cannabidiol (CBD) and is being developed to address and improve upon the rapidly growing CBD market, which includes both FDA approved drugs and CBD products not currently regulated as drugs. For more information, visit www.mymd.com.
About PharmaCyte Biotech
PharmaCyte is a biotechnology company that is currently evaluating its signature live-cell encapsulation technology, Cell-in-a-Box®, for potential development of cellular therapies for cancer, diabetes, and malignant ascites, while also exploring the opportunity for other strategic acquisitions.
The Cell-in-a Box technology involves encapsulating genetically engineered human cells that can then be reintroduced to attack disease. The Company is exploring possible utility in cancer (particularly pancreatic), Type 1 and insulin-dependent Type 2 diabetes, and malignant ascites.
However, until the review by the Business Review Committee and the Board is complete and the Board has determined the actions and plans to be implemented, the Board has curtailed spending on the foregoing programs.
Safe Harbor
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that express the current beliefs and expectations of PharmaCyte’s management and Board of Directors. Any statements contained in this press release which do not describe historical facts are forward-looking statements subject to risks and uncertainties that could cause actual results, performance, and achievements to differ materially from those discussed in such forward-looking statements. Factors that could affect our actual results include our ability to satisfactorily address the issues raised by the FDA in order to have the clinical hold on our IND removed, whether our exploration of additional opportunities to create new paths toward stockholder value is successful, as well as such other factors that are included in the periodic reports on Form 10-K and Form 10-Q that we file with the SEC. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, except as otherwise required by law, whether because of new information, future events or otherwise. More information about PharmaCyte can be found at https://pharmacyte.com.
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Investor Contact:
CORE IR
ir@pharmacyte.com
Media Contact:
Jules Abraham
CORE IR
Telephone: 917.885.7378
Email: julesa@coreir.com
Source: PharmaCyte Biotech, Inc.
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