60 Degrees Pharmaceuticals to sponsor canine babesiosis study

WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW), a company specializing in infectious disease treatments, has announced sponsorship of a pilot study to investigate the use of tafenoquine, an active ingredient in its FDA-approved malaria prevention drug ARAKODA®, for treating babesiosis in dogs. The study, approved by an ethics committee, will be conducted by North Carolina State University within the year.

Babesiosis is a tick-borne disease affecting dogs, potentially leading to severe health issues or death. The study aims to address the 20% failure rate of current standards of care and issues with drug resistance. Tafenoquine's effectiveness for canine babesiosis has not been established, and the FDA has not approved it for this use.

The research will involve a three-day loading dose followed by weekly dosing for a month, with dogs being monitored through periodic PCR testing. Results are expected in 12 months. The study will contribute to broader efforts to evaluate tafenoquine for various babesiosis indications.

ARAKODA® (tafenoquine) was discovered by the Walter Reed Army Institute of Research and funded by the United States Army Medical & Materiel Development Activity. Approved in 2018 for malaria prophylaxis in humans in the United States and Australia, it is available by prescription.

This news article is based on a press release statement from 60 Degrees Pharmaceuticals.

In light of 60 Degrees Pharmaceuticals' recent announcement, investors and industry observers are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, the company's financial metrics paint a challenging picture. With a negative Price/Earnings (P/E) Ratio of -0.49 and a Price/Book (P/B) Ratio of -0.63 for the last twelve months as of Q4 2023, the company's valuation is under pressure. Additionally, the Gross Profit Margin stands at a concerning -87.15%, indicating significant costs relative to sales.

InvestingPro Tips suggest a cautious approach to the stock. Analysts have flagged that the company is quickly burning through cash and does not expect it to be profitable this year. Moreover, the company's valuation implies a poor free cash flow yield, which could impact investor returns. These concerns are compounded by a significant sales decline anticipated in the current year.

For investors considering a position in 60 Degrees Pharmaceuticals, it's worth noting that the company holds more cash than debt, which could provide some financial flexibility. However, the stock has experienced a substantial decline over the past year, with the price falling by 93.98% year-to-date as of the date provided. This could represent a potential entry point for risk-tolerant investors, but it also underscores the stock's volatility and the risks involved.

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Those interested in a deeper analysis can find more InvestingPro Tips on the company's performance and prospects by visiting https://www.investing.com/pro/SXTP. Additionally, users can take advantage of a special offer to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24. There are 12 additional InvestingPro Tips available, providing a comprehensive understanding of 60 Degrees Pharmaceuticals' investment profile.

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