Silo Pharma, Inc. (Nasdaq: SILO), a developmental biopharmaceutical company, has announced a strategic move to address the significant and growing challenge of obesity and metabolic diseases by entering into a non-binding letter of intent to form a 50/50 joint venture with Hoth Therapeutics, Inc. (Nasdaq: HOTH). This partnership focuses on developing and commercialising a novel therapeutic platform based on glial cell line-derived neurotrophic factor (GDNF), a biologic exclusively licensed from the U.S. Department of Veterans Affairs (VA) and co-developed with Emory University.
The biotechnology underpinning this treatment is patented under U.S. Patent No. 10,052,362 and has shown promising anti-obesity effects and metabolic regulation in preclinical models. It targets multiple high-burden conditions such as central obesity, non-alcoholic fatty liver disease (NAFLD), and type 2 diabetes, diseases which affect millions globally and have a substantial impact on both civilian and veteran populations.
Obesity remains a critical health crisis, affecting over 40% of adults in the United States alone. It is a major risk factor for a range of serious health issues, including diabetes, cardiovascular diseases, and liver failure. Veterans, in particular, are disproportionately affected due to a combination of chronic inflammation, PTSD-linked metabolic disruptions, and difficulties accessing effective care. Notably, there are no currently approved biologics that directly target the neuroinflammatory roots of obesity—placing this VA-originated GDNF therapy in a unique and potentially transformative position in the market.
The joint venture seeks to leverage the strengths of each partner: Hoth Therapeutics brings regulatory and development expertise, while Silo Pharma offers translational capabilities and capital efficiency, with both companies equally sharing governance and equity. The collaboration also draws upon the VA’s clinical infrastructure and public mission to accelerate the translation of this innovative science into human trials and eventual clinical application.
Financially, the global market for obesity and related metabolic diseases is colossal. Some estimates push the combined market for obesity and fatty liver disease treatments as high as $100 billion worldwide, with others citing a specific $16 billion opportunity for the obesity segment alone. This partnership aims to capitalise on that market by potentially delivering a first-in-class biologic therapy that could significantly alter the course of treatment for these conditions.
The CEOs of both companies emphasise the potential impact of this collaboration. Eric Weisblum, CEO of Silo Pharma, described the GDNF biologic as a potential “game-changer,” aligned with the company’s mission to accelerate groundbreaking science to clinical development. Robb Knie, CEO of Hoth Therapeutics, highlighted the therapy’s innovation and its promise to deliver life-changing benefits, particularly for veterans disproportionately affected by metabolic disorders.
Silo Pharma’s broader portfolio focuses on underserved conditions such as stress-induced psychiatric disorders, chronic pain, and other central nervous system diseases, with ongoing development programs addressing PTSD, fibromyalgia, Alzheimer’s disease, and multiple sclerosis. This joint venture represents a significant expansion into the metabolic disease arena, signalling the company’s commitment to leveraging innovative biologics for major public health challenges.
While the letter of intent marks a crucial step, the deal remains non-binding, and future commercial success depends on the outcomes of clinical development and regulatory approvals. The announcement includes standard forward-looking statements cautioning about risks and uncertainties inherent in drug development and market dynamics.
Overall, this emerging partnership between Silo Pharma and Hoth Therapeutics encapsulates a promising convergence of public sector innovation, biopharmaceutical development expertise, and pressing healthcare needs. Their joint venture to develop a GDNF-based biologic could provide new hope in the fight against obesity and metabolic diseases, conditions that currently lack curative treatments and continue to impose a heavy global burden.
Source: Noah Wire Services
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