Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) has seen a significant boost in share price, with the stock rising to $6.11, or a 20.28% increase. The company’s recent declaration that it complies with Nasdaq listing standards is the reason for this spike.
Sonnet Regained Nasdaq Compliance
The Nasdaq Stock Market LLC formally notified Sonnet on October 16, 2024, that it had once again complied with the bid price threshold required for the company to be listed on the Nasdaq. This encouraging development has helped SONN’s stock price rise, indicating investor confidence in the company’s strategic path.
SONN Inked Strategic Licensing Agreement
As a further indication of its potential for expansion, Sonnet recently signed a license deal with Alkem Laboratories Limited. The research, development, production, marketing, and commercialization of Sonnet’s patented drug, SON-080, for the treatment of diabetic peripheral neuropathy (DPN) in India are the main objectives of this partnership.
Under the terms of this partnership, Alkem is set to provide Sonnet with an initial payment of $1 million, along with potential milestone payments that could total an additional $1 million. Furthermore, Sonnet will receive royalties calculated as a low double-digit percentage of the net sales of SON-080 upon its commercialization in India, excluding certain expenses outlined in the licensing agreement.
Advancing Clinical Development And Market Opportunities
With this collaboration, Sonnet aims to advance SON-080 into Phase 2 clinical development. The data generated from Alkem’s planned Phase 2 study will facilitate the establishment of additional partnerships in key markets, thereby providing critical therapeutic options for patients suffering from DPN—a condition that presents a significant unmet medical need in the healthcare landscape.
Positive outcomes from Sonnet’s ongoing clinical trial’s finished Phase 1b segment have also surfaced, emphasizing SON-080’s well-tolerated profile and potential for quick symptom relief in CIPN patients. These findings will help the company maintain a competitive edge in the pharmaceutical industry.
