Atea reports high efficacy in Phase 2 HCV drug trial

BOSTON – Atea Pharmaceuticals, Inc. (NASDAQ: AVIR), a biopharmaceutical company focused on developing treatments for viral infections, has announced successful Phase 2 study results for its hepatitis C virus (HCV) treatment regimen. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 24.85, providing substantial runway for its clinical development programs. The study, which evaluated the combination of bemnifosbuvir and ruzasvir, demonstrated a 98% sustained virologic response at 12 weeks post-treatment for patients adhering to an 8-week treatment protocol.

The trial included 275 patients, both with and without cirrhosis, and met its primary endpoints of efficacy and safety. Notably, a 99% response rate was observed among non-cirrhotic, treatment-adherent patients with genotypes 1-4 of the virus. With a market capitalization of $239.47 million, Atea’s stock currently appears undervalued according to InvestingPro analysis, suggesting potential upside for investors interested in the company’s promising pipeline. For those with compensated cirrhosis, the response rate was 88%, indicating slower viral kinetics but suggesting a 12-week treatment duration could maximize efficacy for this group.

Additional Phase 1 studies showed the BEM/RZR combination had a low risk for drug-drug interactions when co-administered with standard HIV treatments, and bemnifosbuvir alone did not require dose adjustments for patients with hepatic or renal impairment.

These findings were presented at the European Association for the Study of the Liver Congress 2025, with Atea’s CEO, Jean-Pierre Sommadossi, expressing the regimen’s potential to optimize HCV treatment across all patient demographics. The company is preparing for Phase 3 trials, C-BEYOND and C-FORWARD, to further investigate the treatment’s benefits.

The Phase 2 study’s results are significant in light of the estimated 2.4 to 4.0 million people living with chronic HCV in the US and the 50 million affected globally. The need for an effective HCV treatment remains high, as new diagnoses continue to outpace cure rates. While analysts have revised earnings expectations downward, with projected EPS of -$1.71 for FY2025, the company’s low beta of 0.17 suggests relatively low stock price volatility compared to the broader market. Discover more insights about Atea’s financial health and growth potential in the comprehensive Pro Research Report, available exclusively on InvestingPro.

Atea plans to host a virtual HCV key opinion leader (KOL) investor event on May 14, 2025, to discuss the Phase 2 results and the ongoing global Phase 3 clinical development program.

This report is based on a press release statement from Atea Pharmaceuticals, Inc.

In other recent news, Atea Pharmaceuticals reported a larger-than-expected loss per share for the fourth quarter of 2024, with earnings per share at -0.4, missing the forecast of -0.35. The company maintains strong cash reserves of $454.7 million, which are projected to support operations through 2028. Atea has also initiated a strategic review, working with Evercore to explore potential partnerships or mergers, and announced a workforce reduction of approximately 25%, expected to save around $15 million through 2027. The board has authorized a $25 million stock buyback program to enhance shareholder returns. Additionally, Atea is advancing its hepatitis C treatment regimen with a global Phase III trial set to begin in April 2025. In corporate governance developments, Atea appointed Arthur S. Kirsch as a new independent director and announced that Dr. Howard H. Berman would join its board as a non-voting observer, with plans to become a full voting member in 2025. Finally, Driver Opportunity Partners III withdrew its nomination of J. Abbott R. Cooper for Atea’s board, reflecting ongoing adjustments in the company’s governance strategy.

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