Silo Pharma Announces Partnership with Global CRO for Central Nervous System Homing Peptide

Rhea-AI Summary

Silo Pharma (Nasdaq: SILO) has partnered with WuXi AppTec, a leading global CRO, for a preclinical study of SPU-16, a central nervous system (CNS) homing peptide targeting multiple sclerosis (MS). The study will examine the organ/tissue specificity of SPU-16 in an experimental autoimmune encephalomyelitis (EAE) protocol, the most common MS model.

SPU-16, developed under a license agreement with the University of Maryland, Baltimore, is designed to cross the blood-brain barrier and target damaged tissue and inflammation. It has shown potential to enhance therapeutic effects while reducing drug toxicity. The global MS drugs market is projected to grow from $21.2 billion in 2024 to $38.9 billion by 2032, with a 7.9% CAGR.

Positive

• Partnership with WuXi AppTec, a leading global CRO, for preclinical study of SPU-16
• SPU-16 designed to cross blood-brain barrier and target damaged tissue and inflammation
• Potential to enhance therapeutic effects while reducing drug toxicity
• Global MS drugs market projected to grow from $21.2 billion in 2024 to $38.9 billion by 2032 (7.9% CAGR)

Negative

• None.

Insights

Medical Research Analyst

This partnership with WuXi AppTec marks a significant step for Silo Pharma in advancing their SPU-16 homing peptide for multiple sclerosis (MS). The preclinical study using the experimental autoimmune encephalomyelitis (EAE) model is important for validating the peptide's organ/tissue specificity. If successful, this could lead to a targeted drug delivery system that enhances therapeutic effects while reducing toxicity.

The potential of SPU-16 to cross the blood-brain barrier and target damaged tissue is particularly promising for MS treatment. However, investors should note that this is still in early stages and success in preclinical studies doesn't guarantee clinical efficacy. The projected growth of the MS drug market (7.9% CAGR, reaching $38.9 billion by 2032) underscores the significant opportunity, but also highlights the competitive landscape Silo will face.

Financial Analyst

While this partnership is a positive development for Silo Pharma, investors should temper their expectations. As a developmental stage company, Silo is still far from commercialization and revenue generation. The agreement with WuXi AppTec, a reputable CRO, lends credibility to Silo's research efforts but doesn't guarantee success.

The MS drug market's projected growth to $38.9 billion by 2032 presents a substantial opportunity. However, Silo will need significant capital to progress through clinical trials and potential commercialization. Investors should closely monitor the company's cash burn rate and funding strategies. The partnership may positively impact Silo's stock in the short term, but long-term value will depend on clinical trial outcomes and the company's ability to navigate the complex and costly drug development process.

Silo to advance homing peptide development for initial indication in multiple sclerosis

SARASOTA, FL, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Silo Pharma, Inc. (Nasdaq: SILO) (“Silo” or the “Company”), a developmental stage biopharmaceutical company focused on developing novel formulations and drug delivery systems for traditional therapeutics and psychedelic treatments, today announced that it has entered into an agreement with WuXi AppTec (Hong Kong) Limited, a leading global contract research organization (CRO), for a preclinical small animal study of SPU-16, a central nervous system (CNS) homing peptide targeting multiple sclerosis (MS). Silo Pharma is advancing the development of the SPU-16 liposomal homing peptide through a commercial evaluation license and option agreement with the University of Maryland, Baltimore (UMB).

The study will examine the organ/tissue specificity of the SPU-16 peptide in an experimental autoimmune encephalomyelitis (EAE) protocol, is the most commonly used experimental model for MS. The peptide’s proven ability to target inflamed epithelium suggests that it can be used as a targeted drug delivery tool to address inflammation in the spinal cord.

“We are excited to launch this new study of our novel CNS homing peptide under the management of WuXi AppTec, one of the largest CROs in Asia and globally,” said Silo CEO Eric Weisblum.¹ “Designed to cross the blood-brain barrier and target damaged tissue and inflammation, SPU-16 has been shown to enhance the therapeutic effect of current and future therapeutics while decreasing the toxicity of the drugs. While we are currently investigating the peptide for MS, it could provide similar benefits for multiple neuroinflammatory pathologies.”

MS, a human inflammatory demyelinating disease, is one of the most widespread disabling neurological conditions of young adults.² The global multiple sclerosis drugs market size is projected to grow at a compound annual growth rate (CAGR) of 7.9% from $21.2 billion in 2024 to $38.9 billion by 2032.³

About Silo Pharma 

Silo Pharma Inc. (Nasdaq: SILO) is a developmental stage biopharmaceutical company developing novel therapeutics that address underserved conditions including stress-induced psychiatric disorders, chronic pain conditions, and central nervous system (CNS) diseases. Silo focuses on developing traditional therapies and psychedelic treatments in novel formulations and drug delivery systems. The Company’s lead program, SPC-15, is an intranasal treatment targeting PTSD and stress-induced anxiety disorders. SP-26 is a time-release ketamine-loaded implant for fibromyalgia and chronic pain relief. Silo’s two preclinical programs are SPC-14, an intranasal compound for the treatment of Alzheimer’s disease, and SPU-16, a CNS-homing peptide targeting multiple sclerosis (MS). Silo’s research and development programs are conducted through collaborations with universities and independent laboratories. For more information, visit www.silopharma.com and connect on social media at LinkedIn , X , and Facebook .

Forward-Looking Statements 

This news release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of words “could”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “may”, “continue”, “predict”, “potential”, and similar expressions that are intended to identify forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Silo Pharma, Inc. (“Silo” or “the Company”) to differ materially from the results expressed or implied by such statements, including changes to anticipated sources of revenues, future economic and competitive conditions, difficulties in developing the Company’s technology platforms, retaining and expanding the Company’s customer base, fluctuations in consumer spending on the Company’s products and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company disclaims any obligations to publicly update or release any revisions to the forward-looking information contained in this presentation, whether as a result of new information, future events, or otherwise, after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law.

Contact 

800-705-0120 
investors@silopharma.com

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¹ BAIPHARM, Top 10 CROs With the Highest Revenues in 2023, April 2024
² Healthline, Multiple Sclerosis: Facts, Statistics, and You
³ Fortune Business Insights, Multiple Sclerosis Drugs Market Size, Share & Industry Analysis…, July 2024

FAQ

What is the purpose of Silo Pharma's partnership with WuXi AppTec for SPU-16?

Silo Pharma partnered with WuXi AppTec to conduct a preclinical small animal study of SPU-16, a central nervous system homing peptide targeting multiple sclerosis. The study will examine the organ/tissue specificity of SPU-16 in an experimental autoimmune encephalomyelitis protocol.

How does SPU-16 potentially benefit multiple sclerosis treatment?

SPU-16 is designed to cross the blood-brain barrier and target damaged tissue and inflammation. It has shown potential to enhance the therapeutic effect of current and future therapeutics while decreasing the toxicity of drugs, which could provide significant benefits for multiple sclerosis treatment.

What is the projected growth of the global multiple sclerosis drugs market according to Silo Pharma's press release?

According to the press release, the global multiple sclerosis drugs market is projected to grow from $21.2 billion in 2024 to $38.9 billion by 2032, with a compound annual growth rate (CAGR) of 7.9%.

What is the stock symbol for Silo Pharma mentioned in the press release?

The stock symbol for Silo Pharma mentioned in the press release is SILO, traded on the Nasdaq.