Groundbreaking therapies that could change the treatment landscape for PTSD, fibromyalgia, MS & Alzheimer’s

Key Takeaways

• Silo Pharma is advancing a diversified pipeline of innovative therapies aimed at major health challenges in Central Nervous System (CNS) disorders like PTSD, fibromyalgia, Alzheimer’s, and multiple sclerosis (MS).
• The company’s unique approach of combining traditional drugs with psychedelic-inspired therapies positions it to address significant gaps in the treatment landscape.
• With strong academic partnerships and proprietary drug delivery systems, Silo is well-positioned to accelerate its pipeline toward clinical success.
• Silo offers substantial upside potential, with its pipeline targeting multi-billion-dollar markets and unmet patient needs.

About Silo Pharma

Silo Pharma Inc. is an innovative biotechnology company focused on developing novel therapeutic solutions for neuropsychiatric and neurological disorders. Originally founded in 2010 under the Uppercut Brands name, it changed it’s name to Silo Pharma in 2020. 

Leveraging both traditional pharmaceutical approaches and cutting-edge psychedelic science, Silo’s strategy aims to address significant gaps in treatment options for PTSD, fibromyalgia, Alzheimer’s disease, chronic pain, and multiple sclerosis. 

The company’s ability to combine proven treatments with new delivery methods, like nasal sprays and under-the-skin implants, gives it a real advantage by solving tough problems in drug administration, such as crossing the blood-brain barrier

Silo is committed to improving patient outcomes and accelerating development timelines through the use of accelerated FDA pathways, which are expected to expedite its drug candidates through clinical trials.

Catalysts

Silo’s Pipeline Tackles Pain, PTSD, Alzheimer’s and MS

Silo Pharma is focused on addressing high-need CNS conditions with its pipeline of traditional and psychedelic-inspired therapeutics. Below is a summary of its key drug candidates:

SPC-15 – PTSD/Anxiety Therapy

• SPC-15 is Silo’s main treatment for PTSD and anxiety. Unlike high-dose psychedelic treatments, SPC-15 is non-psychedelic, meaning it doesn't cause hallucinations and can be easily self-administered with a nasal spray.
• What makes this treatment unique is its patented nose-to-brain delivery system, which allows it to quickly reach the brain and work faster and more effectively by bypassing the blood-brain barrier.

SP-26 – Ketamine Implant for Chronic Pain

• SP-26 is an implant that delivers ketamine to help manage chronic pain, especially for those with fibromyalgia. Unlike other ketamine treatments that are given through an IV or taken by mouth, SP-26 provides long-lasting, non-opioid pain relief and can be self-administered at home.
• The fibromyalgia market is currently valued at over $4 billion, and SP-26 could become a key player by offering an alternative to opioids. 

SPC-14 – Alzheimer’s Disease Therapy

• PC-14 is a nasal spray treatment aimed at improving both memory and mood in people with Alzheimer’s disease. In pre-clinical studies, SPC-14 has shown promise in reducing anxiety and improving behavior in animal models, offering a new approach to support existing Alzheimer’s treatments.

SPU-16 – CNS-Homing Peptide for MS

• SPU-16 is designed to improve how drugs reach the brain in people with multiple sclerosis (MS). It helps cross the blood-brain barrier and target the areas of the brain that are inflamed. Preclinical models have shown that SPU-16 could make current MS treatments more effective, while also reducing side effects.

Large and Underserved Multi-billion Dollar Therapeutics Market 

The global market for PTSD treatments is still lacking, even though millions of people are affected, and SPC-15 offers a new approach that could make it a go-to treatment for PTSD.

Fibromyalgia, a condition with limited treatment options, represents a $4.1 billion market by 2032. SP-26, with its non-opioid pain relief, has the potential to take a big share of that market.

Both Alzheimer’s disease and multiple sclerosis are also massive, growing markets, and Silo’s innovative treatments could work alongside current therapies and capture part of that share.

Looking ahead 5+ years, if SPC-15 becomes a standard treatment for PTSD, peak sales could reach hundreds of millions annually (since millions of people globally suffer from PTSD).

For SP-26, even capturing just 5-10% of fibromyalgia patients could bring in over $500M in peak sales, given that around 2-4% of the population has fibromyalgia, and many still don’t have good treatment options.

Silo’s Development Pipeline Strengthened by Partnerships 

Silo Pharma’s partnerships with academic institutions and industry leaders strengthen its pipeline and reduce development risks. Key collaborations include:

• Columbia University – Exclusive licenses for SPC-15 (PTSD) and SPC-14 (Alzheimer’s) from Columbia University provide access to cutting-edge research and solidify Silo’s foundational knowledge.
• University of Maryland, Baltimore (UMB) – SPU-16’s development benefits from UMB’s research in neuroinflammation, ensuring that Silo stays ahead in the CNS space. (Commercial evaluation license and option agreement with UMB)
• Kymanox – Working with Kymanox accelerates the regulatory and engineering processes for SP-26 and SPC-15, ensuring smoother paths to approval.
• Resyca BV (Medspray/Bespak JV) – Silo’s partnership with Resyca secures the advanced delivery technology needed for SPC-15’s successful intranasal formulation.
• WuXi AppTec – WuXi’s involvement ensures rigorous preclinical testing for SPU-16, which strengthens Silo’s clinical trial readiness.

These partnerships help mitigate development risks, accelerate time-to-market, and provide access to critical resources.

Overall, the catalysts for Silo over the next 1–2 years include: the IND and Phase 1 start for SPC-15 (PTSD), preclinical data readouts for SP-26 (pain), SPC-14 (AD) and SPU-16 (MS) in 2025, additional patent issuances, and potential Fast Track designations. 

Each of these, if positive, could significantly enhance Silo’s commercial potential, which in turn, would enhance the valuation given to it by investors. Additionally, broader industry trends – from the growing interest in psychedelic medicine to the urgent need for new pain and neurology treatments – provide a favorable backdrop for Silo’s story.

Assumptions

Silo Targeting IND Submissions and Phase 1 Trials in 2025

Silo Pharma’s key clinical milestones are focused on the timely progression of its lead programs. SPC-15 is expected to file an IND application for PTSD in 2025, with Phase 1 trials to follow soon after. 

Similarly, SP-26 is on track to initiate IND-enabling studies in 2025, paving the way for Phase 1 trials. The company is also planning to submit an IND for SPC-14 for Alzheimer’s disease in 2025, followed by Phase 1 trials. 

Given the positive preclinical data and the potential for expedited development through the FDA’s 505(b)(2) pathway, these programs are expected to proceed rapidly through the early stages of clinical trials.

Revenue Projections - Commercialization by 2028

Silo could generate revenues of $30 million by 2029, driven primarily by the successful commercialization of SPC-15 for PTSD and SP-26 for fibromyalgia. 

With both products expected to launch by 2028, the revenue ramp-up is expected to begin in the latter half of the decade. In 2025–2026, Silo will remain in R&D mode (ongoing trials, no products on market), so no revenue is expected. 

SPC-15 (PTSD)

• The global PTSD market has been lacking new treatments for over 20 years, and SPC-15 could be the solution it needs. Assuming clinical trials go well and the drug gets approved, SPC-15 could start generating around ~$10 million a year by 2028, with the potential to grow to ~$30 million by 2030 as more patients are treated.

SPC-26 (Fibromyalgia)

• SPC-26 offers a new option for treating fibromyalgia pain, with a potential launch in late 2029. The first year may see modest revenue (around $5 million) if launched Q4 2029, but it has strong long-term growth potential. If Silo retains the rights, the company could also earn royalties or sales from any global licensing agreements.

SPC-14 (Alzheimer’s) and SPU-16 (MS)

• While these treatments are still in the early stages, they hold significant future value. If SPC-14 is licensed out after Phase 1, it could bring in non-dilutive cash. SPU-16 may also create additional revenue through its innovative delivery system.

As Silo continues to move through the clinical development process, the pipeline will keep growing in value. With the right partnerships and successful regulatory milestones, Silo is well-positioned for steady growth in both domestic and international markets.

Partnerships Will Help Accelerate Development

The collaborations with academic institutions like Columbia University and the University of Maryland are expected to provide continued access to state-of-the-art research and new discoveries. 

These partnerships, along with ongoing regulatory support from Kymanox, will help accelerate the development of Silo’s clinical programs, while also positioning the company for potential licensing deals and strategic partnerships with larger pharmaceutical firms. 

These relationships will allow Silo to leverage external expertise and funding, ensuring that its programs meet the regulatory standards required for success in global markets.

Risks

Silo presents a unique investment opportunity with transformative potential in the healthcare space, but the journey is not without risks.

Clinical trials may not meet expectations, regulatory delays could impact timelines, and future financing might cause dilution.

Here is a summary of risks mentioned by the company in it’s SEC filings:

Business Model: The company has a limited operating history under its current plan, has never been profitable, and has not achieved positive cash flow to date.

Need for Capital and Dilution: Continued operations depend on raising additional funding, and raising capital may dilute existing shareholders or introduce restrictive terms.

Clinical Development: Success in clinical trials is uncertain, and delays or failures could prevent regulatory approvals and the commercialization of therapies.

Regulatory and Legal: Core substances like psilocybin are classified as Schedule I drugs, making U.S. commercialization legally complex and dependent on rescheduling or regulatory change.

Valuation

• Revenue: As mentioned in the assumptions, revenue could reach around $30m by the end of 2029, primarily driven by SPC-15 (6k patients paying ~$5k per year) and the possibility of a small contribution from SPC-26 sales.
• Net margins:  By 2028, the company could generate very small profits ($1.5M) as the high gross margins of a CNS drug (likely >80%) begin to outweigh R&D expenses. By 2029, a 30% net profit margin appears reasonable, which assumes operating expenses grow to support commercialization.
• P/E ratio: This analysis uses a 20x PE multiple, which is in line with mid-cap biotech companies that have one or two commercial products and moderate growth. 
• This multiple also reflects a blend of high growth (PTSD indication could still be expanding) tempered by the niche nature of the products. (For reference, the broader biotech industry often trades at 15–25x forward earnings for profitable companies; given Silo’s psychedelic angle and growth, 20x seems a reasonable midpoint.)
• So, under a successful development scenario, applying a 20x P/E multiple to Silo’s projected net income of $9 million by 2029 (30% margin on $30m of revenue) results in a market capitalization of approximately $180 million.
• 2029 value per share: Assuming the company needs to raise money a few more times to sustain its current cash burn (likely $5m until 2028 when it should generate revenue), its shares outstanding could reach 9.5m, up from today’s 4.5m (assuming raising $5m at $1 share price). That results in a 2029 per share value of $19.
• 2025 Present Value per share: For early-stage biotech companies (pre-clinical or early clinical trials), discount rates can range from 20% to 50%, reflecting the risk involved. For this analysis, we’ve opted for 25%.
• So applying a 25% annual discount rate to Silo’s future share price of around $19 results in a present fair value per share of approximately $6.2. 
• This suggests significant potential upside from Silo’s current valuation of around $1, and is reliant on successful execution of its clinical programs.

Peer Comparison: Silo’s current market cap is well below that of competitors like MindMed and COMPASS Pathways, which are valued in the $250–400 million range despite not having any approved products. If Silo’s therapies show clinical success, the company is positioned to see a similar valuation re-rating, potentially reaching comparable market caps prior to product approval.

Conclusion

Silo Pharma is a compelling high-risk, high-reward biotech opportunity. With a pipeline targeting critical CNS disorders and a forward-thinking approach that combines traditional and psychedelic-inspired therapies, the company is well-positioned to make a significant impact on major markets. 

As the company moves into clinical trials and builds on its strategic partnerships, Silo’s future is promising. 

For investors seeking exposure to the next wave of CNS therapeutics, Silo offers a unique speculative opportunity with the potential for strong returns.