SIOUX FALLS, S.D., March 13, 2018 /PRNewswire/ -- Kasten, Inc. (PINK: KAST)
The Kasten shareholders are now well positioned for growth in 2018 and beyond. During 2017, we experienced several noteworthy events. The first was a 50% reduction in the number of outstanding shares, adding value to those remaining shares and conducting a much needed restructuring of the cap table. This was done concurrent with the merger of Kasten and DAKOTA Life Sciences. The second event was the filing of a federal lawsuit against infringers of intellectual property and contract violations. This led to a favorable federal court ruling for the Company in January 2018. The third event was the reduction of our stock price through a coordinated effort by certain shareholders. This was no surprise given the delay in operational funding experienced by the Company. However unwelcome, this was a healthy market move from the perspective of forward-looking growth potential. The fourth - and most exciting - event was the successful global Licensing and Collaboration agreement relating to the Lotilibcin-class of prescription antibiotic in various dosage forms.
As clearly annotated in each of the 2017 quarterly reports, the financials have been stated without fully merged and comprehensive legacy numbers from the DAKOTA Life Sciences merger. When completed, these numbers will reflect the extensive financial details related to years of pharmaceutical research and development by DAKOTA. It has been the Company goal to provide fully merged GAAP financials as the basis for our Annual Report, due for filing soon. Due to the lack of new capital formation in 2017, the accounting effort to achieve these fully merged comprehensive financials was delayed. Regardless, the rapid completion of a PCAOB audit, in a form suitable for possible up-listing of the stock in 2018, is well underway.
In November, 2017, the Company entered into an exclusive global License and Collaboration (i.e., commercial development) Agreement with a Japanese pharmaceutical discovery company UJ Pharma. Extensive issued and pending global patents, patent applications and manufacturing know-how is included in this Agreement. This pharmaceutical technology relates to a clinical stage new chemical entity antibiotic that demonstrates excellent activity against the Methicillin Resistant Staph Aureus (MRSA) pathogen.
The World Health Organization has designated the MRSA pathogen as one of its "High Priority" global health threats in need of new and effective antibiotics. In studies to date, the Lotilibcin antibacterial activity is superior to either Vancomycin or Mupirocin, a few of the current anti-microbial medications that are failing at higher rates over time. The known Community Acquired (CA) and Hospital Acquired (HA) strains of the MRSA pathogen have not demonstrated any global resistance patterns against the Lotilibcin antibiotic, enabling a potentially long period of commercial and medical efficacy for future prescription products using Lotilibcin.
The Company has now organized its forward operations to: a) optimize the clinical trials of the Lotilibcin drug products in 2018 and 2019, and b) accelerate work on additional intellectual property discoveries and filings. In addition to IV dosing options, the License and Collaboration Agreement includes use of advanced lipid vesicle oral and topical drug delivery systems. The Company chairs a Joint Development Committee relating to the development of all of these technologies and retains the final decision rights on that panel.
The Company has already engaged world-class clinical study advisors to guide and manage the essential clinical studies in progress, and to properly design related studies. This process has continued into 2018, during which it is expected that there will be certain announcements in this regard.
Funding of the Company was a key objective of senior Management during 2017- and continues into 2018. Given the capital needed to successfully achieve critical milestones and inflection points, the Company will continue to utilize a multi-prong funding strategy. This includes meeting with potential strategic funding partners, pharma development partners, investment banking firms, and others. The new technology brought into the Company in Q4 2017 has received a very positive reception from potential strategic partners, and many of the current Shareholders. Management believes that this new technology may have a substantial impact on the valuation of the Company. Accordingly, the Company is seeking global partners to facilitate the necessary funding and global market access.
Management thanks all Shareholders for their ongoing support and long-term perspective as we grow this Company and provide healing options to millions of people not otherwise helped by current medications.
About Kasten, Inc./DAKOTA Life Sciences
Kasten, Inc. (d/b/a DAKOTA Life Sciences) is a biopharmaceutical company focused on the acquisition, development, and commercialization of pharmaceuticals designed to prevent and treat serious conditions arising both in hospital and community settings. We are principally focused on delivering solutions to those people who are affected by antimicrobial resistance and who need superior pharmaceutical products at affordable prices.
Forward-Looking Statements - This press release may contain 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause future results to differ materially from the forward-looking statements. You should consider these factors in evaluating the statements herein, and not rely on such statements. The forward-looking statements in this release are made as of the date hereof and Kasten, Inc. dba DAKOTA Life Sciences undertakes no obligation to update such statements.
SOURCE Kasten, Inc. dba DAKOTA Life Sciences