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Monte Rosa Therapeutics (GLUE) Soars 44.1%: Is Further Upside Left in the Stock?
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Monte Rosa Therapeutics (GLUE - Free Report) shares soared 44.1% in the last trading session to close at $6.93. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% gain over the past four weeks.
This surge in stock price came after the company announced that it entered into a multi-billion-dollar collaboration deal with pharma giant Novartis to develop novel therapies for immune-mediated diseases. Per the deal terms, Novartis will receive an exclusive license to an undisclosed discovery target developed using Monte Rosa’s proprietary platform. Novartis will also receive options to license two programs from GLUE’s growing preclinical immunology portfolio.
In exchange for these rights, Monte Rosa will receive an upfront payment of $120 million plus option maintenance payments. The company is also eligible for option exercise payments and development, regulatory and sales milestones. In total, the deal carries a potential value of up to $5.7 billion. Novartis will also pay Monte Rosa royalties on future sales of the drug.
This biopharmaceutical company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +3.5%. Revenues are expected to be $14.07 million, up 52.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Monte Rosa Therapeutics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GLUE going forward to see if this recent jump can turn into more strength down the road.
Monte Rosa Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Day One Biopharmaceuticals, Inc. (DAWN - Free Report) , finished the last trading session 0.8% higher at $7.18. DAWN has returned 5.5% over the past month.
For Day One Biopharmaceuticals, the consensus EPS estimate for the upcoming report has changed -1.2% over the past month to -$0.28. This represents a change of -173.7% from what the company reported a year ago. Day One Biopharmaceuticals currently has a Zacks Rank of #3 (Hold).
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Monte Rosa Therapeutics (GLUE) Soars 44.1%: Is Further Upside Left in the Stock?
Monte Rosa Therapeutics (GLUE - Free Report) shares soared 44.1% in the last trading session to close at $6.93. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% gain over the past four weeks.
This surge in stock price came after the company announced that it entered into a multi-billion-dollar collaboration deal with pharma giant Novartis to develop novel therapies for immune-mediated diseases. Per the deal terms, Novartis will receive an exclusive license to an undisclosed discovery target developed using Monte Rosa’s proprietary platform. Novartis will also receive options to license two programs from GLUE’s growing preclinical immunology portfolio.
In exchange for these rights, Monte Rosa will receive an upfront payment of $120 million plus option maintenance payments. The company is also eligible for option exercise payments and development, regulatory and sales milestones. In total, the deal carries a potential value of up to $5.7 billion. Novartis will also pay Monte Rosa royalties on future sales of the drug.
This biopharmaceutical company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +3.5%. Revenues are expected to be $14.07 million, up 52.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Monte Rosa Therapeutics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GLUE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Monte Rosa Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Day One Biopharmaceuticals, Inc. (DAWN - Free Report) , finished the last trading session 0.8% higher at $7.18. DAWN has returned 5.5% over the past month.
For Day One Biopharmaceuticals, the consensus EPS estimate for the upcoming report has changed -1.2% over the past month to -$0.28. This represents a change of -173.7% from what the company reported a year ago. Day One Biopharmaceuticals currently has a Zacks Rank of #3 (Hold).