Developmental-stage pharmaceutical firm Silo Pharma (NASDAQ:SILO) — which specializes in both traditional and psychedelic therapeutics to address stress-induced psychiatric disorders — saw its shares rise dramatically on Thursday. Earlier this morning, the company announced a partnership to develop an intranasal drug to address post-traumatic stress disorder (PTSD). The news and the large addressable market appears to have catapulted SILO stock.
According to Silo’s press release, the pharmaceutical firm entered into a partnership with Resyca BV, a medical technology provider. Resyca itself is a joint venture which manufactures a formulation-specific microchip-based spray system — a system that undergirds Silo’s lead candidate called SPC-15. This therapeutic addresses PTSD through “cutting-edge nose-to-brain drug dispersion,” explained Silo CEO Eric Weisblum.
In addition, the head executive added that “this delivery method could increase the drug’s concentration in the brain to deliver a faster onset of therapeutic benefit and optimized safety for PTSD patients.”
Importantly, Silo and Resyca have developed a plan to set the framework for pre-human clinical trials. Such trials are necessary before the partnership can apply for an investigational new drug (IND) from the Food and Drug Administration (FDA) to conduct human trials.
Growing Need for PTSD Solutions Fuels the Surge in SILO Stock
Naturally, the anticipation of a regulatory green light has contributed to the explosive sentiment in SILO stock. A few days ago, the underlying pharma made headlines when it announced a licensing deal for the development of SPC-14, a therapeutic for Alzheimer’s.
Regarding today’s jump in SILO stock, the growing need for addressing PTSD has helped positively shift the underlying corporate narrative. Prior to the series of key developments, Silo suffered a significant drop in equity value in the past one-year period. Now, in the past five sessions, SILO has gained 260%.
According to Grand View Research, the global PTSD treatment market size reached a valuation of $915.5 million in 2021. Experts project a compound annual growth rate (CAGR) of 4.7% from 2022 to 2030. At the culmination point, the sector could generate revenue of $1.4 billion. However, it’s also possible that this projection may be understated.
Presently, about one in five adults in the U.S. experience some form of mental illness. Further, as people — especially younger generations — become more vocal about mental wellness issues, demand for treatment solutions may rise. That’s also another potential catalyst for SILO stock.
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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
