Back to top

Image: Bigstock

Nurix's (NRIX) Stock Up Due to License Option Exercise by Gilead

Read MoreHide Full Article

Nurix Therapeutics (NRIX - Free Report) announced that its partner, Gilead Sciences (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%.

Zacks Investment Research
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 Aptinyx (APTX - Free Report) and Annovis Bio (ANVS - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 90 days, the estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 56 cents. In the past year, the shares of Aptinyx have fallen by 95.3%.

APTX’s earnings witnessed an average earnings surprise of 9.53%, beating all four estimates in the trailing four reported quarters.

In the past 90 days, the consensus estimate for Annovis’ 2023 loss per share has narrowed from $2.94 to $2.93. In the past year, the shares of Annovis have increased by 9.4%.

ANVS’ reported loss per share was narrower than the estimated loss per share in the last reported quarter, delivering an earnings surprise of 20.51%.

Published in