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BOSTON - Atea Pharmaceuticals, Inc. (NASDAQ: AVIR), a biopharmaceutical company focused on antiviral treatments with a market capitalization of $257 million, announced today the appointment of Dr. Howard H. Berman as a non-voting observer to its board of directors. The company maintains a strong financial position, with InvestingPro data showing it holds more cash than debt and maintains a healthy current ratio of 24.85. Dr. Berman is set to become a full voting member at Atea’s 2025 Annual Meeting of Stockholders.
CEO Jean-Pierre Sommadossi expressed confidence in Dr. Berman’s expertise contributing to the company’s Phase 3 program for hepatitis C treatments and shareholder value. Dr. Berman, with a history of leadership in biotechnology firms, echoed his eagerness to join the board and support Atea’s growth.
The appointment is part of an agreement with investors Bradley L. Radoff and Michael Torok, who have agreed to support Atea’s board nominees at the upcoming annual meeting. The investors have withdrawn their own slate of nominees in light of this agreement, which also includes various standstill and voting provisions.
Concurrently, Atea’s board has initiated a share repurchase program, authorizing the buyback of up to $25 million of the company’s common stock. The announcement comes as the stock has shown significant momentum, posting an 11.5% return over the past week according to InvestingPro data, though trading above its calculated Fair Value. This move aligns with Atea’s strategy to enhance shareholder returns while maintaining investment in its Phase 3 hepatitis C virus (HCV) program.
Atea had previously engaged Evercore in December 2024 to explore strategic alternatives aimed at maximizing shareholder value, including potential partnerships, mergers, or asset sales. With analyst price targets ranging from $6 to $7 per share suggesting potential upside, and comprehensive analysis available through InvestingPro’s detailed research reports, investors are closely monitoring the strategic review. The process is ongoing, with no further details disclosed until a definitive action is decided upon or deemed appropriate.
Additionally, Franklin Berger, a current board member, has communicated his decision not to seek re-election at Atea’s 2027 Annual Meeting of Stockholders.
This announcement, based on a press release statement, comes as Atea continues to advance its antiviral drug development platform, focusing on the regimen of bemnifosbuvir and ruzasvir for treating HCV, a significant global health concern.
In other recent news, Atea Pharmaceuticals reported its fourth-quarter 2024 earnings, revealing a loss per share of -0.4, which was wider than the anticipated -0.35. This financial performance was influenced by increased research and development expenses related to ongoing trials for COVID-19 and hepatitis C. Atea’s cash reserves stood at $454.7 million, extending its financial runway into 2028. The company is preparing to initiate a global Phase III trial for its hepatitis C treatment in April 2025, with expectations to enroll 800 patients per trial. In a strategic move, Atea has reduced its workforce by approximately 25%, aiming to save around $15 million through 2027. Additionally, the company appointed Arthur S. Kirsch as a new independent director, bringing his experience in healthcare and life sciences to the board. Driver Opportunity Partners III withdrew its nomination of J. Abbott R. Cooper for Atea’s Board of Directors, as announced in a recent SEC filing. These developments reflect Atea’s ongoing efforts to enhance shareholder value and manage corporate governance.
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