EXCLUSIVE: Pasithea Bolsters CNS-Focused Pipeline With AlloMek Therapeutics Acquisition

Pasithea Therapeutics Corp KTTA has acquired AlloMek Therapeutics LLC, a privately-held biotechnology company, 

What Happened: Pasithea will pay $1.05 million upfront cash payment and 2.7 million restricted shares plus 5-year warrants to acquire 1 million shares at an exercise price of $1.88 per share. 

Pasithea is also obligated to make certain clinical and regulatory event-driven milestone payments and low-to-mid single-digit escalating royalties on net sales. 

Also Read: EXCLUSIVE: Pasithea's Multiple Sclerosis Vaccine Candidate Shows Efficacy In Animal Studies, With Potential In Monkeypox.

AlloMek's lead therapeutic candidate, CIP-137401, is a potential best-in-class macrocyclic mitogen-activated protein kinase 1/2 (MEK) inhibitor for use in a range of CNS-related indications.

Why It Is Important: The company plans to file an IND application with the FDA to start a human trial in 2H 2023, with a Phase 1 clinical trial for Neurofibromatosis Type 1.

"The acquisition of AlloMek represents the successful continuation of our business development strategy. Expanding our CNS-focused drug development pipeline with near-term clinical opportunities addressing rare RASopathies, positioning us for long-term growth opportunities with potential synergy with our existing tolerizing program that we believe will yield the greatest results," stated Tiago Reis Marques, CEO of Pasithea. 

Uday Khire, AlloMek CEO, noted, "We strongly believe in our lead molecule, CIP-137401, which has shown a unique combination of potency, tolerability, and PK profile in preclinical settings and could prove to be a sweet spot among MEK kinase inhibitors."

Price Action: KTTA shares closed at $1.26 on Tuesday.