Amygdala Neurosciences Inc. has bought the promising addiction-treating medication, GS-6637, from Gilead Sciences, Inc. (NASDAQ:GILD) for an undisclosed price. The once leading is currently trading at miserable valuations while the HCV industry is shrinking and the HIV division is threatened by mounting competition. The probably only means to unlock the firm’s performance and stock price is via the expansion in other divisions, which is achievable via the launch of successful medications in fields such as Inflammatory Bowel Disease and NASH.
GS-6637, which has moved through three small Phase I trials, has a long history, beginning with its finding by CV Therapeutics. Gilead bought the medication, along with other firm’s assets, in a $1.4 billion takeover deal of CV Therapeutics, and took development of the medication through early-stage trials. With the decision to offer GS-6637 to Amygdala, the biotech stock is effectively returning the medications to its founders. It should be noted that Amygdala is a biotech firm established by 4 ex executives of CV Therapeutics.
The former CV Therapeutics Chief Executive Lou Lange will be the executive chairman of Amygdala while Peter Strumph will serve as the CEO. Ian Diamond will serve as the new CSO of the firm. Diamond and Lange both were senior advisers to Gilead after its acquisition of CV Therapeutics.
The Phase II ready GS-6637 is utilized to treat alcohol and drug addiction. The drug functions by inhibiting ALDH2 enzyme, which lessens the production of dopamine. Substance misuse and addiction resulted in 67,000 deaths in the United States from drug overdose.
More than 88,000 deaths in 2015 happened due to alcoholism, whereas 22 million individuals are projected to be addicted to numerous alcohol and drugs. The area presents a massive market with increased unmet need for efficient and improved therapies. Popular as CVT-10216 in the past, GS-6637 will be renamed to ANS-6637.