NLS Pharmaceutics Ltd (NASDAQ:NLSP) Stock Soars 45%: What’s the Buzz?
Anyone who is currently on the lookout for stocks that may have clocked significant gains in recent days is unlikely to miss the NLS Pharmaceutics Ltd. (NASDAQ:NLSP) stock. This past Friday, it had been in the middle of a remarkable rally and ended up with gains of as much as 45% amidst significant interest.
The Swiss clinical-stage biopharmaceutical firm is involved in the development and discovery of innovative therapies for those suffering from complex and rare disorders of the CNS (central nervous system). On December 1, the company announced that it had entered into an option agreement with the privately held, United States-based firm Aexon Labs, Inc.
As per the terms of the option agreement, NLS could acquire the commercialization and global development rights to the Dual Orexin Receptor Agonists platform from Aexon Labs. Additionally, it would also get the same rights to new molecular entities and highly selective dual oral orexin-1 and orexin-2 receptor agonists.
Mr. Zwyer said, “I believe the potential acquisition of this novel and unique platform which consists of over 300 compounds, bridges the present to the future treatment of sleep disorders as well as other neuro-degenerative disorders. These new compounds, in addition to our current pipeline, including Mazindol ER for the treatment of narcolepsy, along with NLS-4 focused on idiopathic hypersomnia, long-COVID and chronic fatigue syndrome, and NLS-11, addressing Kleine-Levin Syndrome and neurodegenerative diseases will further complement and strengthen our hypersomnia franchise.”
The agonists could be used to potentially treat idiopathic hypersomnia and narcolepsy, as well as neurodegenerative conditions like Alzheimer’s and Parkinson’s. In the news release, it was noted that the transaction would be structured in the form of an exclusive global license for the commercialization and development of the compounds and derivatives of Aexon Labs by NLS.
NLS could exercise the option by March 31, 2024, at the latest. For the option exclusivity, NLS would pay Aexon Labs $300,000 and $170,000 once the definitive agreement to exercise the option is executed. However, that is not all. As per the terms of the transaction, Aexon Labs also stood to earn 15% of all the sub-licensing agreements that could be signed by NLS in the future, in addition to regulatory milestones, commercial milestones, and royalties generated in the first three years of commercialization in the United States and the European Union.
