Ocean Biomedical Faces Setback with Licensing Termination

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Scientists collaborating on innovative malaria vaccine research at Ocean Biomedical.

News Summary

Ocean Biomedical Inc. is experiencing a major setback as it faces the termination of its licensing agreements for technologies developed at Brown University and Rhode Island Hospital. This comes amidst financial challenges, with the company reporting a loss of $9.4 million. Despite these struggles, Ocean Biomedical continues its research into malaria vaccines, having secured significant funding from the NIH. As it develops vaccine candidates aimed at combating malaria, the company’s future depends on mitigating its current operational and financial difficulties.

Providence, Rhode Island – Ocean Biomedical Inc. is facing the termination of its licensing agreements for technologies developed at Brown University and Rhode Island Hospital, marking a significant setback for the company. Elkurt Inc. officially notified Ocean Biomedical of this termination on June 9, as detailed in a filing with the U.S. Securities and Exchange Commission on June 12.

This development comes amid continuing financial challenges for Ocean Biomedical, which reported a substantial loss of $9.4 million for the year 2024. This loss, while significantly lower than the previous year’s deficit of $114.4 million, underscores ongoing struggles within the company. As of its inception in 2019, Ocean Biomedical has not generated any revenue.

Despite these financial woes, the company is pushing forward with its research initiatives. Dr. Jonathan Kurtis, a Scientific Co-founder of Ocean Biomedical, leads a research team that has secured notable funding from the National Institutes of Health (NIH) for its malaria vaccine research. The funding includes $4.6 million from a non-governmental foundation grant and an additional $3.5 million NIH grant obtained in December 2024.

The NIH funding is particularly pivotal as new FDA guidance on lipid-encapsulated vaccines could hasten the development of the malaria vaccine candidates based on Dr. Kurtis’s research. The research utilizes a novel approach, focusing on investigating natural immune responses in children resistant to malaria, specifically targeting a unique protein known as GARP, found on malaria-infected red blood cells.

Ocean Biomedical is developing three vaccine candidates aimed at preventing malaria parasites from entering and exiting red blood cells. These efforts include exploring lipid-encapsulated mRNA technology for efficient vaccine delivery. The company plans to commence human trials for these vaccines by the fourth quarter of 2025, provided that the development process remains on track.

The context of this research is urgent, as malaria continues to pose a significant health threat, claiming over 500,000 children’s lives annually in sub-Saharan Africa. Ocean Biomedical’s patent portfolio is also noteworthy, boasting over five dozen patents related to infectious diseases, oncology, and fibrosis. The potential commercial applications of this research include mRNA-based vaccines, small molecule drugs, and monoclonal antibodies designed to combat malaria.

Dr. Kurtis and his team are particularly focused on inducing parasite cell death by targeting PfGARP, a crucial element in halting the malaria lifecycle. This targeted approach is essential as malaria transformation occurs within red blood cells, making it a challenging disease to combat effectively.

In recent developments, Ocean Biomedical has also faced operational impacts beyond financial losses, including being delisted from the Nasdaq Stock Market and experiencing changes within its board of directors. These changes could influence the company’s strategic direction and its ability to capitalize on its research and development efforts.

As a spinoff of Brown University, Ocean Biomedical continues to pursue significant unmet medical needs related to lung cancer, brain cancer, pulmonary fibrosis, and malaria prevention and treatment. The company’s future, however, hinges on its ability to navigate these challenging circumstances, secure additional funding, and successfully advance its promising research initiatives into viable medical solutions.