Biopharma’s Amino Acid Compound Shows Anti-Inflammatory Effect

Source: Streetwise Reports   08/23/2021

Studies suggest that Galmed Pharmaceuticals’ Amilo-5MER has “therapeutic potential in a number of inflammatory diseases,” according to an H.C. Wainwright & Co. report.

In an Aug. 20 research note, H.C. Wainwright & Co. analyst Ed Arce reported that preclinical data showing the anti-inflammatory effects of Galmed Pharmaceuticals Ltd.’s (GLMD:NASDAQ) Amilo-5MER were published in The Journal of Autoimmunity.

Arce explained that Amilo-5MER, a compound of five amino acids in a specific sequence, interferes with serum amyloid A polymerization and aggregation. Those amino acids, listed in their requisite sequence, are methionine, threonine, alanine, aspartic acid and valine, or MTADV. Amilo-5MER is believed to selectively bind to serum amyloid A and prevent it from making immune cells secrete pro-inflammatory cytokines.

In his report, the analyst then relayed the study results presented in the journal article, “MTADV 5-MER Peptide Suppresses Chronic Inflammation as well as Autoimmune Pathologies and Unveils a New Potential Target—Serum Amyloid A.”

In a mouse model with collagen-induced arthritis, Amino-5MER was shown to inhibit joint inflammation after 10 days of treatment, Arce noted. Two doses were tested, 3 milligrams per kilogram (3 mg/kg) and 10 mg/kg, and each yielded the same effects.

Also, Galmed’s Amilo-5MER was shown to reduce in human rheumatoid arthritis fibroblasts levels of the proinflammatory cytokines IL-6 and IL-1β activated by serum amyloid A. The five amino acids out of sequence did not have the same result, indicating the proper sequencing of them is critical to efficacy.

These data sets suggest Amilo-5MER might be used as a treatment in various indications involving inflammation, such as rheumatoid arthritis, inflammatory bowel disease and multiple sclerosis.

As for the first in-human trial of Amilo-5MER, a Phase 1 readout is expected this quarter, Q3/21. Currently, H.C. Wainwright does not include this compound in its valuation model for Galmed.

Of greater interest to the investment firm. because it does not include Amilo-5MER in its valuation model for Galmed, is its Aramchol program, Arce wrote. The next Aramchol catalyst is the release of initial data in Q4/21 for 50 patients in the open-label part of the ARMOR study evaluating the drug in nonalcoholic steatohepatitis and fibrosis.

H.C. Wainwright has a Buy rating and a $25 per share price target on Galmed Pharmaceuticals. This target implies a significant potential return, as the biopharma’s current share price is about $2.90.

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