Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) has signed a licensing agreement with Alkem Laboratories Limited to develop and commercialize SON-080, a potential treatment for diabetic neuropathy in India.
Under the terms of the agreement, Alkem will make an upfront payment of $1.0 million to Sonnet, with the possibility of additional milestone payments totaling $1.0 million. Sonnet will also receive royalties on net sales in India. Alkem will be responsible for funding and conducting clinical trials for regulatory approval of SON-080 in India.
The diabetic neuropathy market in India is projected to grow significantly, with a value of $246.7 million by 2030. Globally, the market for DPN treatment is expected to reach $6.8 billion by 2030, highlighting the potential for SON-080.
CEO Pankaj Mohan and Dr. Akhilesh Sharma of Alkem expressed optimism about the partnership, citing the need for innovative treatments for neuropathies in India. SON-080 has shown promise in preclinical studies and ongoing clinical trials, with positive results in Phase 1b for CIPN.
Sonnet's recent financial developments, including NOL sales and R&D tax credits, as well as positive results from clinical trials, indicate a positive trajectory for the company. The collaboration with Alkem represents a strategic move in addressing unmet medical needs in India.
InvestingPro Insights:
InvestingPro data reveals that Sonnet faces financial challenges, with a market cap of $3.17 million and limited revenue. The partnership with Alkem could provide a significant boost to cash reserves. While the stock's performance has been poor, the potential market opportunity in India could drive future growth.
InvestingPro Tips suggest that Sonnet's cash position and lack of debt are positive factors, but weak profit margins and recent stock performance raise concerns. The partnership with Alkem may be a turning point for Sonnet, offering potential for future revenue streams.
Overall, the collaboration between Sonnet and Alkem presents a significant opportunity for investors, as it addresses the growing market for diabetic neuropathy treatment in India.