Silo Pharma Inc (NASDAQ: SILO) observed a sharp rise in its share price Wednesday morning after revealing that it had received a notice of allowance for a U.S. patent on an intranasal PTSD therapeutic. The stock rose by 146 per cent during early hours on the Nasdaq.
The biopharmaceutical operator expects to have the patent in hand within the next 90 days. The “SPC-15″ drug was developed in partnership with Columbia University.
“We are pleased to kick off 2025 with this expected addition to our intellectual property portfolio,” chief executive Eric Weisblum said in a press release. A Phase I clinical study on the treatment will begin shortly.
Although the drug is expected to be efficacious for both genders, the patent expected in three months is tailored for “Pharmacological Prophylactics Against Stress-Induced Affective Disorders in Females,” Silo explained.
Silo has highlighted that 26 per cent of American adults suffer from PTSD, anxiety and other conditions. The market for drugs like SPC-15 is expected to be valued at approximately US$13 billion by 2027, the company says.
Silo focuses on developing traditional medicines and psychedelic treatments.
Its SP-26 drug utilizes ketamine to treat chronic pain. Although classified as a dissociative anaesthetic and not a classical psychedelic like LSD or DMT, the drug is known for its strong psychoactive effects. Silo has also been investigating psilocybin for the treatment of Parkinson’s and bipolar disorder.
$SILO the first psychedelic stock to go boom!!!!
More coming fam.
Lock in!$MIRA $MNMD $ATAI $CMPS $IXHL $CYBN pic.twitter.com/hjeT26ALCT
— Matthew Vlietstra (@Matt_vlietstra) January 8, 2025
Read more: Psychedelic drug developer MindMed set for listing on Nasdaq Biotechnology Index
Read more: Silo Pharma to test a novel experimental intranasal formulation for PTSD
Ketamine drugs market expected to grow immensely
The demand for therapeutics like Silo’s SP-26 is expected to rise substantially in the coming years.
The market for ketamine clinics in the United States alone is anticipated to be valued at more than double what it was worth in 2023 by the end of the decade. Grand View Research made this prediction in July last year, expecting it to have a US$6.9-billion-dollar valuation by that time.
“The market’s growth can be attributed to the increase in mental health awareness, the ongoing opioid crisis, and an increasing number of ketamine clinics across the U.S.,” the research firm said.
Moreover, the international market for intranasal drug delivery devices that shoot substances like SPC-15 into the nasal cavity is expected to expand more than two-fold as well. Precedence Research made that assessment last August and expects it to be valued at US$4.4 billion by 2034.
“Novel nasal drug delivery devices are expected to reach the market and grow significantly in the upcoming years due to the prevalent awareness regarding nasal drug delivery and the probable advantages of intranasal administration,” Precedence said in its report.
rowan@mugglehead.com
