Lpath, Inc. (NASDAQ: LPTN)
Lpath is having an incredible day in the market today, and for good reason. The company announced that it has been awarded funding and has become part of a key defense program. Today, we’ll talk about the details of the news, how the market is reacting to the news, and what we can expect to see from LPTN moving forward. So, let’s get right to it…
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LPTN Gains On DMRDP Grant
As mentioned above, Lpath is having a great day in the market today as the result of a key announcement. The company announced that it has been awarded a 2-year grant of $1.45 million. The grant was awarded by the Defense Medical Research and Development Program, also known as the DMRDP.
Under the grant, LPTN will be working on the study of Lpathomab for the treatment of neuropathic pain associated with traumatic brain injury, also known as TBI. The grant that was awarded to the company will cover the costs associated with preclinical studies of the treatment. These studies are designed to evaluate Lpathomab’s ability to alleviate pain following neurotrauma and confirm the efficacy of Lpathomab that was previously demonstrated by Stanford University researchers. In a statement, Roger Sabbadini, Ph.D., Founder of LPTN and co-principal investigator on the TBI project, had the following to say:
“Lpath is grateful to the DoD for recognizing the significant value of funding further development of Lpathomab. We believe our novel approach of targeting bioactive lipids holds great promise, and this is validated by the financial commitment from the Dod’s DMRDP.”
The above statement was followed up by Dario Paggiarino, M.D., SVP and Chief Development Officer at Lpath. Here’s what he had to say:
“Now that Lpath has successfully demonstrated safety and tolerability of Lpathomab in healthy volunteers, we anticipate testing Lpathomab in patients with neuropathic pain. The preclinical demonstration of Lpathomab’s potential efficacy in TBI pain could support another important indication for further investigation.”
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the company as a result. The news that was released with regard to LPTN was overwhelmingly positive. As a result, we’re seeing strong movement in the market today surrounding the stock. Currently (11:08), the stock is trading at $3.30 per share after a gain of $1.22 per share, or 58.65%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Lpath. The reality is that the company’s work with regard to Lpathomab is incredible and is now leading to funding for further development. As the company continues to work on the treatment and eventually pushes it toward FDA approval, we’re likely to see more big gains. Now, keep in mind that market reactions tend to be overreactions. So, we may see a slight correction tomorrow before more gains ahead. Nonetheless, the long-term view is looking great.
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What Do You Think?
Where do you think LPTN is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
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