Importance Score: 45 / 100 🔵
Shares of Galmed Pharmaceuticals (GLMD), an Israel-based drug developer, experienced a significant surge, climbing 45% to $2.28 following the announcement of a strategic agreement. The company is set to collaborate with Entomus to create a novel sublingual formulation of semaglutide, a widely-used medication for managing type 2 diabetes and obesity.
Galmed Pharmaceuticals Partners to Develop New Semaglutide Formulation
Galmed Pharmaceuticals announced a collaborative agreement with Entomus, a pharmaceutical company, focusing on the development of a new sublingual, or under-the-tongue, version of semaglutide. This medication is currently used in the treatment of diabetes and obesity. The collaboration aims to enhance drug delivery mechanism which may translate into improved patient outcomes.
Innovative Drug Delivery System
The new formulation will employ a distinctive delivery mechanism. This system facilitates absorption of the medication via the oral cavity directly into the bloodstream. The company suggests this method could potentially diminish adverse effects and boost patient adherence to the treatment regimen.
Finalizing the Agreement
Both companies must finalize a definitive agreement within 90 days. This agreement will outline the specifics of milestone payments and royalty structures tied to the development and commercialization of the sublingual semaglutide formulation.
Targeting Key Markets for Semaglutide
Strategic Market Expansion
Galmed intends to concentrate on markets where semaglutide’s patent protections are slated to expire as early as 2026. These territories encompass:
- India
- Brazil
- Gulf countries
- Other regions grappling with elevated rates of diabetes and obesity
Year-to-Date Performance
Despite the day’s gains, Galmed’s stock remains down 27% year-to-date, reflecting prior market performance. Today’s increase is a welcome shift offering hope of improving investor confidence.