Health check: Prestigious publication supports Alterity’s ‘brain iron overload’ thesis

• Metallomics’ peer-reviewed publication supports the mechanism of action of Alterity’s neurological drug candidate
• Respiri says it will benefit from new US reimbursement rules
• Osteopore enters into agreement to sell its orthopedic products in Singapore

When it comes to diet, an iron deficiency is not desirable and supplement giants like Blackmores are quick to the rescue.

But having too much of the trace metal in the wrong part of the brain is attributed to neurological conditions such as Parkinson’s disease.

This thesis is central to his work Otherness Therapy (ASX:ATH) and its drug candidate ATH434 – and its mechanism of action has now been recognized by the peer-reviewed publication Metallomics.

“Iron has long been implicated in neurodegeneration, but having the right iron-targeting agent is critical to … treating the disease,” says Alterity CEO Dr. David Stamler.

“This groundbreaking publication demonstrates the novel way in which ATH434 targets the labile or reactive form of iron that can be so damaging to cells when in excess.”

ATH434 acts as an “iron chaperone”, redistributing excess reactive iron to reduce protein aggregation and oxidative stress in the brain.

Toxic iron overload is synonymous with the rare neurodegenerative Friedreich’s ataxia and Parkinson’s disease, but Alterity targets multiple system atrophy (MSA).

In July, Alterity published positive interim data from its 77-patient Phase II study for MSA, with top-line data due next January.

Meanwhile, singing about being mentioned in a publication might seem a little cheesy – the prestigious Stockhead exception – but such peer-reviewed approval is crucial in the biotech environment.

Alterity shares were flat at 0.03 cents.

Breathe easier on the US refund

Radiopharmaceutical companies aren’t the only ones buoyed by favorable changes to US public reimbursement rules (as we reported on Monday).

House for diagnosing respiratory diseases Breathe (ASX:RSH) says it will also benefit from the American Medical Association’s (AMA) proposed changes to reimbursement criteria for Remote Patient Monitoring (RPM) programs.

Respiri’s lead product is Wheezo, an app-based device to detect conditions such as asthma and chronic obstructive pulmonary disorder.

As expected, Wheezo is an integral part of the remote patient management revolution.

Buoyed by the expected changes, the US-focused company released a quote today, highlighting a total addressable market of 50,000 patients in its current customer base and a “sales pipeline” of 250,000 patients.

Respiri currently has 29 clients (service providers) in 2,435 patient programs.

In short, reimbursement will be available for a threshold of less than two days of patient data collected by Wheezo over a 30-day period, compared to 16 days currently.

The time that clinical staff have to interact with the patient decreases to 11-20 minutes, from 20 minutes currently.

Reimbursement is then available for an additional 10 minutes of “interactive communication”, down from the current 20 minutes.

Respiri is specific about the financial impact, estimating that the change will increase the number of reimbursed patients from the current 50-70% to 90%.

This should generate an additional revenue of $108,000 per year for every 1000 patients monitored remotely, with an estimated doubling of monitoring services provided.

At current reimbursement rates, this “could” increase Respiri’s monthly charges per patient from $70-90 to $140-180.

While the revised reimbursement rates have not yet been finalized, the company says they show that remote patient monitoring services “appear to be part of the reimbursement landscape for the foreseeable future.”

Reimbursement is determined not by the AMA, but by the US Centers for Medicare and Medicaid Services (CMS).

But given the AMA’s strong endorsement, CMS is expected to implement the changes next year, starting in January 2026.

Respiri shares have been on a tear, doubling in the past month. This morning they strengthened 2.5% to 8.1 cents.

Osteopore knee brace signs deal to sell Lion City

Regenerative medicine company Osteopore (ASX:OSX) entered into an agreement to sell its orthopedic products available in Singapore, its home geography.

Osteopore is a leader in 3D printed bioresorbable implants that mimic natural biological processes to stimulate natural bone healing.

The exclusive five-year deal – with a Swiss mafia we’ll abbreviate as DKSH – comes after Singapore regulators approved Osteopore’s products in March.

Sales will focus on high tibial osteology or HTO (knee reconstruction surgeries). About 10% of Singaporeans have knee osteoarthritis, with the number of HTO surgeries doubling to 100 between 2020 and 2021.

Earlier this year, Osteopore signed an exclusive deal with Indiana-based global device giant Zimmer Biomet to distribute its craniofacial products in Europe, the Middle East and Asia Pacific.

In the September quarter, Osteopore reported its seventh consecutive quarter of revenue growth, up 46% year over year to $759,000.

The company has operating cash flow of $738,000, with $1.44 million in the bank at the end of the quarter.

However, in September the company said it had signed a term sheet to raise issues of redeemable convertible notes with a face value of $20 million.

While Osteopore is making commercial progress, its shares have lost 94% of their value year to date. The culprit was a rights offering in March to raise $3 million at a discount of – you guessed it – a staggering 94%.

Shares in Osteopore this morning were flat at 3.9 cents