Nurix Therapeutics ( NRIX Quick Quote NRIX - Free Report) announced that its partner, Gilead Sciences ( GILD Quick Quote GILD - Free Report) has exercised its option to exclusively license the former’s investigational targeted protein degrader molecule NX-0479. Nurix’s NX-0479, an IRAK4 degrader, is designated GS-6791 and becomes the first development candidate under Nurix and Gilead’s global strategic collaboration. The collaboration agreement, announced in June 2019, includes discovering, developing and commercializing a pipeline of innovative targeted protein degradation drugs for patients with cancer and other challenging diseases. Stock of Nurix was up approximately 6% on Monday, following the news as the option exercise results in cash inflow.
In the past year, the shares of Nurix have plunged 34.9% compared with the
industry’s fall of 16.8%. Image Source: Zacks Investment Research
Per the terms of the exercised option to exclusively license Nurix’s NX-0479, the company is eligible to receive an upfront option exercise payment of $20 million. Additionally, Nurix could receive up to $425 million in clinical, regulatory and commercial milestone payments, along with up to low double-digit tiered royalties on product net sales. The degradation of the IRAK4 protein by GS-6791 is believed to have greater efficacy as compared with kinase inhibition. IRAK4 degradation has the potential to treat rheumatoid arthritis, along with other inflammatory diseases.
Per the terms of Nurix and Gilead’s 2019 global collaboration agreement, both companies collaborated to discover, develop and commercialize a pipeline of up to five innovative targeted protein degradation therapies for patients with cancer and other challenging diseases. Nurix received an upfront payment of $45 million on closing the deal. The company is also eligible to receive additional payments based on the completion of certain research, pre-clinical, clinical, regulatory and commercialization milestones as well as up to low double-digit tiered royalties on net sales.
Nurix has the right to retain the option to co-develop and co-detail up to two programs in the United States, subject to certain restrictions. The development costs and profits and losses resulting from the programs, opted by Nurix to co-develop and co-detail, will be split equally by both parties in the United States and Nurix will be eligible to receive royalties on ex-U.S. sales and reduced milestone payments. However, the collaboration deal does not include Nurix’s lead degradation program, which involves the degradation of Bruton’s tyrosine kinase to treat certain oncology indications, for which the company retains all rights. Further, in case Gilead uses its right to veto one co-development option, the option will revert to Nurix for use on potential future licensed products.
Zacks Rank and Stocks to Consider
Nurix Therapeutics currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the same industry are
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