Neothetics Inc. (NASDAQ: NEOT) saw its stock hit a multiyear high on Wednesday after the firm announced a critical patent approval. The U.S. Patent and Trademark Office (USPTO) issued U.S. Patent Number 9,597,531, which deals with the specific methods of using Neothetic’s LIPO-202 and other agents for the reduction of fat accumulation.
The patent is expected to expire no earlier than the fourth quarter of 2031, extending the coverage time of the company’s intellectual property portfolio. This is the eighth issued U.S. patent directed to Neothetics’ lead product candidate LIPO-202, which is being evaluated for the reduction of submental fat.
LIPO-202 is an active ingredient of U.S. Food and Drug Administration (FDA)–approved inhaled products such as Serevent Diskus, Advair HFA and Advair Diskus. LIPO-202 has an extremely favorable safety profile, with little to no adverse post-treatment effects. The drug is being evaluated for the reduction of submental fat, commonly referred to as a double-chin.
Martha J. Demski, a member of Neothetics’ Operating Committee and board of directors, commented:
This patent further strengthens our comprehensive intellectual property portfolio protecting our lead clinical asset, LIPO-202.
For roughly the past year, the stock has stayed within the range of $1 to $2. The stock originally entered the market around $11 back in 2014, and the stock actually made gains for part of 2015 before falling off a cliff to the current price level.
Shares of Neothetics were trading up nearly 32% at $2.04 on Wednesday, with a consensus analyst price target of $3.00 and a 52-week trading range of $0.56 to $2.59.