Sonnet BioTherapeutics Holdings, Inc. (SONN) today announced the completion of Licensing agreement with New Life Therapeutics(NLT) after which the SONN stock price saw an uptrend of 6.75% to reach $2.53 a share as of this writing. SONN stock soared in the previous trading session and went up by 17.91% at closing. Let’s deep dive to explore more of it.
Completion of Licensing Agreement:
Sonnet BioTherapeutics Holdings, Inc. is a biotechnology company focused on the area of oncology for the development of the platform for biologic medicines for single as well as multipurpose actions. The execution of a definitive agreement of SONN stock with NLT is for of license of low-dose Interleukin 6 for the treatment of Diabetic Peripheral Neuropathy. The ASEAN countries included under the licensed territories are Singapore, Indonesia, Malaysia, Thailand, The Philippines, Cambodia, Vietnam, Myanmar, Brunei, and Lao PDR.
According to the definitive agreement, SONN stock is eligible to receive payment of $1.0 Million from NLT which also including the $500,000 paid during 2020. Furthermore , Sonnet stock also has the right to receive the $20.0 Million aggregate of the potential additional amount of regulatory and commercial milestone payments along with tiered royalties on net sales ranging from 12% to 30%. The ASEAN region to be included in Phase 1b/2a pilot-scale efficacy study with low-dose IL-6 in DPN, in the second half of 2021. Sonnet will continue to manufacture low-dose IL-6 for clinical development as well as commercial purposes. NLT can negotiate the license for commercial rights in Chemotherapy-Induced Peripheral Neuropathy and expansion of territory to include China and India.
Management View on Agreement:
Founder and CEO of Sonnet stock Pankaj Mohan expressed excitement for the opportunity of advancing the diabetic peripheral neuropathy program of Sonnet by partnering with NLT. Pankaj thinks that this agreement will expand the market dynamics of the SONN stock and will remove some of the development burdens of the SONN stock. He further added that this agreement is one step closer to a new treatment for patients who are suffering from diabetic peripheral neuropathy.
Momentum was already built for SONN stock and recent news has added more hype to the rising SONN stock price. It seems that SONN stock is developing with time but deep fundamental as well as technical analysis is necessary before adding this stock to the portfolio.