The Actinogen Medical Ltd (ASX: ACW) share price jumped 4.5% on open this morning, after the company announced it has filed two new patent applications to strengthen and extend its intellectual property (IP) portfolio.
What does Actinogen Medical do?
Actinogen Medical is an ASX biotech company. It specialises in developing novel therapies of a range of conditions. These include neurological, psychiatric and metabolic diseases associated with chronically elevated cortisol. This is a metabolic disorder caused by overproduction of corticosteroid hormones by the adrenal cortex. Often it is associated with obesity and high blood pressure.
The lead compound currently being developed by Actinogen is called "Xanamem". This compound is a new type of therapy for Alzheimer's disease, Fragile X syndrome, schizophrenia and diabetes. According to the company, solutions to effectively address these conditions and the burdens for patients have not yet adequately been met. It is therefore focusing on the gap in this market.
Why are these patents important?
The two patents filed this week are to expand and extend the company's IP estate.
The first patent filed requests protection for a method of improving cognition or treating cognitive decline in cognitively healthy subjects. Expansion of the IP estate is a key goal here.
The second patent filed provided protection to a commercial scale-up manufacturing process for Xanamem. This patent is the result of a collaborative effort between Actinogen Medical and a Switzerland-based contract development and manufacturing organisation.
Actinogen holds a large number of patents, either granted or pending. The new patents filed this week have the ability to extend patent life. Protection around Xanamem is now effective until 2040 at least. This gives the company a long runway of breathing room to continue its research and development.
In statement to the ASX today, Actinogen Medical CEO and managing director Dr Bill Ketelbey had this to say:
Strengthening our IP portfolio and extending the patent life of protection over Xanamem is aligned with our broader commercialisation strategy for Xanamem. The potential to treat cognitively healthy subjects, a population in which XanaHES demonstrated clear efficacy results, as well as treat those at risk of cognitive impairment, is a significant medical and commercial opportunity. Equally, the patented and optimised manufacturing methodology provides an efficient and commercially viable process which provides a substantial new barrier to competition. Actinogen remains focused on maintaining and extending the protection of Xanamem to maximise its commercial potential.
Foolish takeaway
The Actinogen Medical share price opened 4.5% higher on this positive news today. However, overall this year the Actinogen Medical share price is down more than 30%.
