Palisade Bio Q1 2024 Financial Results and Business Update

Palisade Bio, Inc. (Nasdaq: PALI), a biopharmaceutical company based in Carlsbad, CA, has announced its financial results for the first quarter of 2024, along with a business update centered on its lead product candidate, PALI-2108, aimed at treating Ulcerative Colitis (UC).

Key Developments:
Palisade Bio has entered into a strategic partnership with Strand Life Sciences, gaining access to advanced bioinformatics tools essential for decoding complex disease pathways and anticipating responses to phosphodiesterase-4 (PDE4) inhibitors. The company has also successfully completed an ex-vivo study evaluating the effects of bioactivated PALI-2108 on TNF-α production in a whole blood assay, as well as an analysis of the ex-vivo bioactivation of PALI-2108 in the stool of healthy and UC patients. Additionally, Wall Street and biotech industry veteran Margery Fischbein has been appointed to the Board of Directors. Furthermore, in May 2024, Palisade Bio extended its financial runway by completing a $4.0 million private placement.

CEO J.D. Finley expressed confidence in the progress of PALI-2108, emphasizing the promising anti-inflammatory potential of the drug in treating UC, based on recent data from two ex-vivo studies.

PALI-2108 Development Program:
Palisade Bio is advancing PALI-2108, an orally administered, locally acting colon-specific PDE4 inhibitor prodrug, toward a Phase 1 clinical study for moderate-to-severe UC. The company has outlined several upcoming milestones:
- Completion of ongoing IND/CTA-enabling toxicology studies by the end of Q2 2024.
- Completion of nonclinical IND/CTA-enabling activities by the end of Q3 2024.
- Submission of initial IND/CTA in Q3 2024.
- Initiation of Phase 1a/b clinical trials by the end of 2024.

Precision Medicine Approach:
The company is also developing a precision medicine approach using genetic or biomarker-based methods. This approach is aimed at helping physicians identify patients most likely to respond to PDE4-inhibitor therapy with PALI-2108. Palisade Bio has curated a dataset of clinical and biomarker information from over 1,600 UC patients and is in ongoing discussions with potential partners to develop a test approved by the FDA. This effort is expected to support the development of a pipeline focusing on autoimmune, inflammatory, and fibrotic diseases.

Financial Summary for Q1 2024:
As of March 31, 2024, Palisade Bio had cash and cash equivalents totaling $11.3 million. Following the recent private placement, the company believes it has enough funds to support its operations through the first quarter of 2025. The net loss for Q1 2024 was $3.5 million, an increase from a net loss of $2.3 million in Q1 2023. Research and development expenses rose to $2.2 million from $1.2 million, largely due to costs related to PALI-2108's development. General and administrative expenses remained steady at approximately $1.5 million.

Company Overview:
Palisade Bio is dedicated to developing and advancing novel therapeutics for autoimmune, inflammatory, and fibrotic diseases. The company aims to transform treatment options through its targeted approach.