Hoth Therapeutics (HOTH) saw its stock prices surge today, December 27, 2022, after the company announced that the U.S. Food and Drug Administration (FDA) had accepted its Investigational New Drug (IND) application for HT-001, its lead drug candidate for the treatment of cancer disorders. This news has given investors confidence in Hoth’s ability to develop and commercialize HT-001 and has contributed to the surge in its stock price.
The FDA acceptance of the IND application comes on the heels of Hoth’s announcement in October of its proposed reverse stock split. The proposed 1-for-25 reverse stock split is aimed at bringing Hoth into compliance with Nasdaq’s minimum bid price rule for continued listing. The company also announced that it would effect a 1-for-25 reverse split of its common stock, which will reduce the number of shares of its common stock outstanding from approximately 13 million to approximately 520,000.
In addition to the reverse stock split, Hoth has also been taking steps to strengthen its financial position. According to its most recent financial report, Hoth’s total assets are $10.9M and its liabilities and stockholders’ equity are $10.9M. Hoth also has accounts payable and accrued expenses of $368,000, indicating a strong balance sheet.
Furthermore, Hoth has been leveraging its partnerships to advance the development of HT-001. The company has signed a collaboration agreement with Merck & Co., Inc., which provides Hoth with access to Merck’s expertise and resources in the development of HT-001. Hoth is also in the process of completing a clinical trial to evaluate the safety and efficacy of HT-001.
Overall, Hoth Therapeutics has been making impressive progress in its development of HT-001 and has been leveraging its partnerships and financial position to strengthen its prospects for the future. This has contributed to the surge in its stock price today and has provided investors with confidence in the company’s long-term potential.
