Is Alterity Therapeutics (ATHE) Stock a Good Buy?

Alterity Therapeutics Ltd (NASDAQ: ATHE) is rocketing in the market this morning after the company announced it has received a new US patent relating to its work in neurodegenerative diseases like Alzheimer’s and Parkinson’s. Here’s what’s going on:

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ATHE Announces a New Patent

In a press release issued this morning, Alterity Therapeutics said that the United States Patent and Trademark Office has granted patent number 11,155,547. The patent is titled “Compounds for and Methods of Treating Diseases” and centers around 80 novel compounds for the treatment of neurodegenerative diseases. 

As a result of the patent, ATHE has secured exclusivity for a new class of iron chaperones that are designed to redistribute the excess iron implicated in many neurodegenerative diseases. That exclusivity is expected to last through 2041 under the patent, providing a strong timeline for drug development and commercialization in these areas. 

The company also said that it’s pursuing patent protection in other regions. 

Management Commentary

In a statement, David Stamler, M.D., CEO at ATHE, had the following to offer:

“We continue to identify new drug candidates to expand our portfolio and protect our therapeutic approach to address neurodegeneration. 

With the granting of this patent and another composition of matter patent last year, we are establishing a strong foundation as a leader in targeting iron for potential disease modifying therapy for important neurodegenerative diseases such as Parkinson’s and Alzheimer’s.”

This News Is Huge

Neurodegenerative diseases like Alzheimer’s and Parkinson’s have long been burdens on the United States and global healthcare systems. Unfortunately, experts have yet to find a clear cause for the conditions, and while there are treatments available that are expected to slow the progression of these diseases, efficacy is a major question. 

Should Alterity Therapeutics create a feasible treatment that actually does slow progression, or better, reverses the effects of these diseases, the potential profitability from these drugs would be astronomical, and with exclusivity through 2041, the company has plenty of time to make its way through the development and commercial stages. 

Ultimately, ATHE announced that it has added 80 new compounds to its pipeline, with each compound having the potential to become a blockbuster. If that’s not big new, I’m not quite sure I know what is. 

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The Bottom Line

The bottom line here is that Alterity Therapeutics may be onto something big here, and investors are taking note. While gains may taper off as traders take profits at the top, waiting for the dip and jumping in for the lung run may not be a bad idea here. Sure, there will always be risks to consider, but if the company does indeed develop an effective treatment for Alzheimer’s or Parkinson’s the potential gains are unheard of. 

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