Benzinga | Dec 8, 2021 07:30AM EST

EXCLUSIVE: Hoth Therapeutics Gives Cannabinoid-Based Lupus Candidate Back To Zyl

Hoth Therapeutics Inc (NASDAQ:HOTH) has agreed to license its cannabinoid therapeutic, HT-005, for lupus patients back to Zyl? Therapeutics.

What Happened: In August 2019, Hoth Therapeutics and Zyl? Therapeutics agreed to jointly develop an endocannabinoid-based treatment for cutaneous lupus erythematosus (CLE), a lupus subtype that affects the skin.

The agreement gave Hoth an exclusive North American license to a possibly topical treatment that delivers anandamide using Zyl?'s patented delivery system, called Z-pods.

Hoth's CEO, Robb Knie, said, "the licensing of HT-005 back to Zyl? after proving its efficacy and safety in animals is a win-win for both companies."

Scott Pancoast, Zyl?'s CEO, said, "Hoth has been a great partner, working closely with the Zyl? team to confirm efficacy in an animal model and to strategize about the preclinical development plan."

Why It matters: Hoth will receive further equity in Zyl? and the potential upside through royalties. It will also reap cost savings, as Zyl? will be responsible for future development costs.

In May 2020, Hoth Therapeutics made a small equity investment in Zyl? Therapeutics.

In November 2020, proof-of-concept preclinical data on HT-005 for CLE demonstrated a significant reduction in skin plaque severity after treatment with HT-005 compared to untreated control mice.

The significant reduction of plaque severity in the overall composite score was observed within three weeks and maintained throughout the 10-week treatment cycle.

Price Action: HOTH shares traded higher by 2.58% at $0.80 premarket on the last check Wednesday.

Photo by Erin_Hinterland via Pixaby