Argenica Therapeutics (ASX:AGN) is reporting a rat study of its traumatic brain injury (TBI) drug ARG-007 has shown early-stage evidence of neuroprotective action.

The drug reportedly reduced damage to brain cells which was measured by looking at neuroinflammation in rats. According to Argenica, certain biomarker levels associated with TBI were equal to those in non-affected animals.

This “[suggests] ARG-007 prevents damage following TBI,” the company wrote on Tuesday. Argenica also reported that RG-007 led to “several signs of improvement in a motor function test and behavioural test” as well as weight loss.

The data adds to two other animal studies showing similar impacts in rats and ferrets.

Argenica shares popped 8% out the gate, but quickly pared gains to sit flat at 70cps. At 11am Sydney time, shares had nudged up to 72cps – but on very thin trades.

Argenica will continue working on ARG-007 with universities in Adelaide and Perth.

“We are extremely pleased with the results from this larger preclinical study in a moderate TBI animal model,” Argenica MD Dr. Liz Dallimore said.

“The study confirms previously generated data, indicating that ARG-007 consistently reduces axonal injury and neuroinflammation following TBI, and encouragingly to levels similar to non-injured animals.

“We will continue to progress further larger animal studies in TBI to ensure rigorous scientific validation of ARG-007 in TBI as a therapeutic target”.

AGN last traded at 70cps.

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