60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP, SXTPW) has entered into an exclusive option agreement with the Florida State University Research Foundation covering intellectual property related to the therapeutic development of castanospermine for tick-borne diseases, according to a press release.

Under the agreement, the Washington, D.C.-based company holds an exclusive option to negotiate a U.S. license for patented technology and know-how relating to the use of castanospermine in four disease areas: Powassan virus disease, tick-borne encephalitis, alpha-gal syndrome, and post-treatment Lyme disease. The agreement also provides an evaluation period for the company to develop a commercialization strategy and supporting development plan.

Castanospermine is a naturally occurring iminosugar found in the Australian Chestnut tree. The compound has shown antiviral and immunomodulatory activity in preclinical studies. Human safety data exists from clinical trials involving celgosivir, a pro-drug that converts to castanospermine after oral administration.

"This agreement reflects our belief that castanospermine may have its greatest long-term value as the basis for innovative prescription medicines addressing important unmet needs in tick-borne diseases," said Geoff Dow, Chief Executive Officer of 60 Degrees Pharma.

The company recently met with the U.S. Food and Drug Administration to discuss a New Dietary Ingredient Notification for Australian Chestnut Extract as a dietary supplement. Following those discussions, the company said it is re-evaluating its regulatory strategy for the dietary supplement opportunity while prioritizing prescription drug development programs.

60 Degrees Pharmaceuticals received FDA approval for its lead product, tafenoquine (ARAKODA), for malaria prevention in 2018. The company is also developing tafenoquine for babesiosis, a tick-borne disease.