Cigna earnings beat by $0.04, revenue topped estimates
On Wednesday, H.C. Wainwright maintained a Buy rating and a $15.00 price target for Alumis Inc (NASDAQ:ALMS) shares, representing significant upside potential from the current price of $4.00. According to InvestingPro data, analyst targets for the stock range from $15.00 to $29.00, despite the company’s current market capitalization of approximately $218 million. The endorsement follows the announcement of a strategic partnership between Alumis and Kaken Pharmaceutical (TADAWUL:2070) Co. to advance the development and commercialization of the TYK2 inhibitor, ESK-001, for dermatological uses in Japan. This collaboration may also extend to rheumatological and gastrointestinal diseases.
The agreement stipulates that Alumis will receive $40 million in upfront and near-term co-development payments. Additionally, the potential exists for Alumis to earn up to approximately $140 million in further milestone payments and field option payments. This cash injection comes at a crucial time, as InvestingPro analysis shows the company holds more cash than debt on its balance sheet, though it has been rapidly deploying its capital for development activities. Moreover, Alumis will benefit from tiered royalties on future Japanese sales of ESK-001, ranging from low double-digit to mid-twenty percent margins on aggregate net sales.
Kaken Pharmaceutical is tasked with overseeing the clinical development, regulatory processes, and commercialization efforts for ESK-001 within Japan. Conversely, Alumis will maintain the rights to ESK-001 in all other regions. Furthermore, Kaken will contribute to a portion of the global development costs for ESK-001, demonstrating a shared investment in the success of the treatment.
The collaboration is expected to leverage Kaken’s expertise in dermatology, potentially accelerating ESK-001’s path to market in Japan. Alumis’s strategic partnership with Kaken underscores a significant milestone in the company’s efforts to bring new therapeutic options to patients with dermatological, and possibly other, conditions. While the stock has experienced significant volatility, falling nearly 70% over the past year, InvestingPro subscribers can access 12 additional key insights about Alumis’s financial health and market position to make more informed investment decisions.
In other recent news, Alumis Inc. announced a significant collaboration with Kaken Pharmaceutical for the development and commercialization of ESK-001 in Japan. This deal could bring Alumis up to $180 million in payments, including $40 million upfront and the potential for $140 million in milestone and field option payments. Alumis will also receive tiered royalties on future sales, while Kaken will handle clinical development and commercialization in Japan. Additionally, Baird reiterated its Outperform rating with a $17 price target for Alumis, following promising data from a Phase 1 study of A-005. Cantor Fitzgerald maintained an Overweight rating on Alumis, citing positive insights from investor meetings and the potential market impact of ESK-001. H.C. Wainwright adjusted its price target for Alumis to $15 from $19, reflecting a larger than expected net loss in the company’s fourth-quarter financial report. Despite this, H.C. Wainwright continues to endorse a Buy rating, emphasizing the company’s strong cash position and the promising data for ESK-001.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.