Cingulate Stock Is Hottest Talk Of Retail Street After Europe Patent For ADHD Drug Candidate

Cingulate Inc. (CING) shares skyrocketed over 85% in pre-market trading on Friday, becoming the top trending stock on Stocktwits. The surge comes after the stock rallied nearly 160% on Thursday, triggered by the company's announcement of a European patent for its ADHD drug candidate, CTx-1301.

This patent expands Cingulate's intellectual property protection to include up to 30 European countries, adding to its existing patents in Australia, Canada, and Israel. The company is also pursuing patents in Hong Kong, South Korea, and the United States.

ADHD is a significant global health issue, affecting millions worldwide. Cingulate's focus on developing treatments for ADHD aligns with its broader strategy of utilizing its proprietary PTR technology for other therapeutic areas, such as anxiety disorders.

The patent news has injected a much-needed dose of optimism into the stock, which has lost over 94% of its value this year due to several headwinds.

The company reported disappointing Q2 earnings and has been grappling with financial challenges, including a significant cash burn and a history of top executive departures.

Cingulate has a cash balance of just $0.4 million as of June 30, 2024. To address this, the company raised $1.6 million in July through warrant inducement and plans to seek additional funding.

A regulatory filing last year warned of potential bankruptcy if financial issues persisted.

Despite these challenges, the European patent news has reignited interest in Cingulate. However, it remains to be seen if this momentum can be sustained and if the company can successfully navigate its financial hurdles to capitalize on its drug development pipeline.