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On Thursday, H.C. Wainwright reaffirmed a Buy rating and a $36.00 price target for Nurix Therapeutics Inc . (NASDAQ:NRIX) shares, representing significant upside from the current price of $11.38. The $863 million market cap company has seen its stock decline nearly 40% year-to-date, according to InvestingPro data. The firm’s analyst, Robert Burns, highlighted the recent licensing agreement between Nurix and Sanofi (NYSE:NASDAQ:SNY), which focuses on a novel program targeting a key transcription factor involved in autoimmune diseases. This program is separate from the STAT6 degrader initiative previously disclosed by Nurix.
Nurix received a $15 million license extension fee from Sanofi as part of their 2019 collaboration agreement. The deal leverages Nurix’s proprietary DELigase drug discovery platform to develop agents that use E3 ligases for targeted degradation of specific drug targets. Sanofi holds the option to license drug candidates emerging from this collaboration. InvestingPro analysis shows Nurix maintains a strong liquidity position with a current ratio of 6.46 and more cash than debt on its balance sheet, though the company is currently burning through cash reserves.
Under the terms of the agreement, Nurix retains the option to co-develop and co-promote up to two products in the United States following clinical proof of concept studies. Should Nurix exercise this option, the companies will share profits and losses equally in the U.S., and Nurix will earn royalties on sales outside the U.S. If Nurix opts not to co-develop, it will instead receive milestone payments and royalties on global development and sales.
The reaffirmed price target of $36 by H.C. Wainwright comes as Nurix continues to innovate in the field of drug discovery and development, particularly in the area of autoimmune disease treatment. With the company’s next earnings report due on April 9th, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which include fair value estimates, financial health scores, and over 10 additional ProTips for this stock.
In other recent news, Nurix Therapeutics has announced significant developments in its drug programs and corporate strategy. The company has licensed a new drug discovery program to Sanofi, focusing on autoimmune diseases, which has resulted in $105 million in payments to Nurix, including a recent $15 million license extension fee. This collaboration could potentially bring up to an additional $465 million in milestone payments and royalties. In another development, the U.S. FDA granted Orphan Drug Designation to Nurix’s bexobrutideg, intended for the treatment of Waldenström macroglobulinemia, offering potential benefits like tax credits and market exclusivity upon approval.
Furthermore, Nurix has granted stock options and restricted stock units to 13 new employees as part of its 2024 Equity Inducement Plan, aiming to attract talent. The company also expanded its board of directors by appointing oncology expert Dr. Roy D. Baynes, who brings extensive experience in clinical leadership. Analysts at Stifel have raised Nurix’s stock price target to $36, maintaining a Buy rating, citing the company’s pipeline progress and upcoming trials as pivotal for the year. These recent developments reflect Nurix’s ongoing efforts in drug discovery and corporate growth.
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