NLS Pharmaceutics Shares Increase Over 30% Intraday: Why It Happened

By Amit Chowdhry ● Aug 19, 2021
  • The shares of NLS Pharmaceutics Ltd. (NASDAQ: NLSP) increased by over 30% intraday. This is why it happened.

The shares of NLS Pharmaceutics Ltd. (NASDAQ: NLSP) — a Swiss clinical-stage pharmaceutical company focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders — increased by over 30% intraday. Investors are responding positively to the company announcing that it has received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) for patent application No. 16/083,131. When the patent issues, it will cover oral formulations containing immediate-release and sustained-release layers of mazindol and their use in the treatment of attention deficit disorders (ADD or ADHD), related deficit of alertness or decline in vigilance, or excessive daytime sleepiness (e.g., narcolepsy, idiopathic hypersomnia).

A Notice of Allowance is issued after the USPTO determines that a patent should be granted from an application. And the patent — which is expected to be issued in the fourth quarter of 2021 — will have a term that expires no earlier than March 2037. Based on the current clinical development plans to obtain regulatory approval, NLS would promptly list the patent in the U.S. Food and Drug Administration’s (FDA) Approved Drug Products with Therapeutic Equivalence Evaluations, or Orange Book if it receives market approval.

KEY QUOTE:

“We are extremely pleased to have received this Notice of Allowance from the USPTO for our proprietary mazindol formulation as we advance the development of Quilience (mazindol ER) to treat narcolepsy and potentially other sleep-wake disorders. Earlier this year, we were granted similar patents in both the European Union and Canada, and we expect that the issuance of this patent will provide intellectual property protection for Quilience across the major markets in our business plan. Given our patent estate and the Orphan Drug Designations that we have in both the U.S. and Europe, we believe that our proprietary position on Quilience is strong.”

— Alex Zwyer, Chief Executive Officer of NLS

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.