After completing a successful IPO, Gain Therapeutics is already firming up its financial position
Established in 2017 with the support of its founders and institutional investors, Gain Therapeutics (GANX) set out from the get-go to redefine drug discovery with its SEE-Tx target identification platform.
With this platform, Gain Therapeutics seeks to unlock new treatment options for some of the most difficult-to-treat disorders characterized by protein misfolding. These include lysosomal storage disorders and generic neurodegenerative disorders, such as Parkinson’s Disease, Gaucher Disease, and Morquio B/GM1 Gangliosidosis.
Gain Therapeutics’ work is already being recognized as vitally important, as the company has been awarded funding support from The Michael J. Fox Foundation for Parkinson’s Research (MJFF) and The Silverstein Foundation for Parkinson’s with GBA, as well as from the Eurostars-2 joint program with co-funding from the European Union Horizon 2020 research and Innosuisse.
Investors might acknowledge this but also want to know: can a potentially lifesaving clinical research project also maintain a firm financial footing? Fortunately, recent data shows that crucial science is not at all incompatible with fiscal stability.
A Closer Look at GANX Stock
The buying opportunity with GANX stock today is simply undeniable. On March 18, Gain Therapeutics had its IPO on the Nasdaq, pricing the shares at $11 apiece. As of May 11, you can actually own the shares at a discount to the IPO price.
This is not something that happens all the time on Wall Street, and oftentimes it’s a brief window in which nimble investors can accumulate shares during a temporary low point.
When buying stocks near their 52-week lows – a strategy that has served me quite well over the years, especially when I’m investing in value-added businesses – it’s important to use historical price ranges to gauge how high the stock can go.
In the case of GANX stock, we see that just recently, the share price went as high as $17.93. This suggests the possibility of doubling your investing in a very short period of time with GANX stock – you only need the conviction to stay in the trade when the amateurs are bailing at the worst possible time.
Redefining Drug Discovery
With the company’s SEE-Tx target identification platform, Gain Therapeutics is boldly venturing into areas of under-addressed but vital medical need.
SEE-Tx addresses conditions induced by protein misfolding, which is an underlying biological issue of many diseases, including lysosomal storage disorders and some neurodegenerative diseases such as Parkinson’s disease.
When a protein misfolds, its 3D structure is disrupted and it can no longer function properly. And while some treatments are available for these types of disorders, they have significant limitations.
Through a proprietary, supercomputer-driven drug discovery platform, SEE-Tx identifies novel allosteric binding sites on misfolded proteins. This enables the targeting of novel allosteric binding sites and the generation of proprietary molecules efficiently and quickly.
With SEE-Tx, Gain Therapeutics is able to provide a diversified pipeline of drug candidates that target multi-billion-dollar markets. The high-need medical conditions that SEE-Tx seeks to treat include:
- Morquio B, a progressive disease mostly impacting the skeleton (SEE-Tx is in the preclinical stage to treat this condition)
- GM1 Gangliosidosis, a hereditary, progressive disease mostly impacting neurons in the brain and spinal cord (preclinical stage)
- Gaucher disease, the most common lysosomal storage disease, which can lead to the toxic buildup of fat in a variety of organs and tissues such as the liver, spleen, bones and central nervous system (preclinical stage)
- Parkinson’s disease, a neurodegenerative disorder that affects more than 6 million people worldwide (preclinical stage)
- Mucopolysaccharidosis type 1, a lysosomal storage disease which can lead to the toxic buildup of large sugars in the bone, cartilage, cornea, heart and central nervous system (SEE-Tx is in the discovery stage to treat this condition)
- Krabbe disease, a severe neurodegenerative disorder which can lead to the toxic buildup up fats in the central nervous system and ultimately the demyelination and death of neurons (discovery stage).
Financial Stability
As you can see, Gain Therapeutics is leveraging the broad-based applicability of SEE-Tx to redefine the science of therapeutic drug discovery.
Plus, the company has established strategic partnerships to more effectively advance the treatment discovery process. For instance, Gain Therapeutics has formed an R&D collaboration with Sumitomo Dainippon Pharma Co., Ltd. on an undisclosed target in the field of Demyelinating Disease.
Moreover, Gain Therapeutics has formed a multi-target discovery and development collaboration with Zentalis Pharmaceuticals in the area of oncology.
These partnerships, along with Gain Therapeutics’ own groundbreaking research, present the opportunity to expand into other indications addressing protein misfolding, in addition to the multiple conditions we’ve already mentioned.
On the financial front, there’s also good news to report. After completing a highly successful IPO, Gain Therapeutics raised $46 million in gross proceeds, which puts the company in an excellent fiscal position to advance SEE-Tx’s supercomputing platform technology to identify novel allosteric binding sites on misfolded proteins.
Furthermore, as of March 31, Gain Therapeutics had cash and cash equivalents of $46.59 million – again, an indication of financial health as Gain Therapeutics pursues life-changing therapeutics with SEE-Tx.
The Bottom Line
Gain Therapeutics is forming value-added partnerships and creating new medicines to address high-need areas in therapeutic drug discovery.
And with the IPO and fiscal first quarter in the books, Gain Therapeutics is on solid ground and well on its way towards achieving a breakthrough medical moment.
