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On Monday, Leerink Partners analysts reaffirmed their Market Perform rating and a $16.00 price target for Nurix Therapeutics (NASDAQ: NRIX). The decision follows the announcement that partner Sanofi (NASDAQ:SNY) (EPA: SAN), a pharmaceutical giant with a market capitalization of $119.29 billion and an impressive 71% gross profit margin, has exercised its option to license Nurix’s STAT6 program, including the development candidate NX-3911. According to InvestingPro, Sanofi maintains a robust financial health score of "Good."
The licensing agreement will bring a $15 million fee to Nurix, as part of their ongoing collaboration with Sanofi, which generated $48.87 billion in revenue over the last twelve months. The STAT6 program is regarded as a valuable component of Nurix’s portfolio, particularly given the recent release of promising Phase 1 data from Kymera Therapeutics’ (NASDAQ: KYMR) KT-621, which has increased interest in STAT6-targeted therapies.
Nurix’s stock saw a rise today, attributed to the excitement surrounding the STAT6 program and the positive readthrough from Kymera’s data. However, analysts suggest that future stock performance will be more significantly influenced by the progress of Nurix’s BTK degrader, bexobrutideg, in treating chronic lymphocytic leukemia (CLL).
Nurix is expected to release updated Phase 1 data for bexobrutideg later this month, along with guidance on the next steps, including the timing and design of pivotal studies. Despite the potential for value creation in this area, analysts note that the path forward remains challenging due to a competitive landscape and complex development requirements.
In other recent news, Sanofi has maintained a Hold rating with a price target of $67, according to TD Cowen. The firm conveyed a neutral stance on the stock following a meeting with Sanofi’s CFO. Sanofi expressed confidence in meeting its financial guidance for Dupixent, its leading product, with no immediate concerns about competition or loss of exclusivity until after 2031. The company also noted a positive development with the approval of its Covid vaccine Biologics License Application and views its COVID/Flu combination vaccine as a valuable asset. Sanofi anticipates substantial growth for Beyfortus, its RSV monoclonal antibody, with expectations of significant market share and peak sales between €2 billion and just under €3 billion. The company projects that RSV monoclonal antibodies could capture approximately 80% of the market share at their peak, with growth expected in 2025-26.
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