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SAN FRANCISCO - Nurix Therapeutics, Inc. (NASDAQ:NRIX), a biopharmaceutical company trading near its 52-week low of $10.37, has announced the licensing of a new drug discovery program to Sanofi S.A., targeting a key regulator of inflammation for autoimmune diseases. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimate. This undisclosed target, separate from the STAT6 degrader program, has been identified using Nurix’s DEL-AI drug discovery engine.
The collaboration, which began in December 2019, has now yielded a total of $105 million in payments to Nurix from Sanofi, including a recent $15 million license extension fee. Nurix could receive up to an additional $465 million in development, regulatory, and commercial milestones, as well as potential royalties on future sales. InvestingPro data shows the company maintains a healthy current ratio of 6.46, with more cash than debt on its balance sheet, though analysts note the company is quickly burning through its cash reserves.
Nurix’s Chief Scientific Officer, Dr. Gwenn M. Hansen, expressed that the discovery of novel binders for this previously undruggable target showcases the potential of their DEL-AI platform in creating innovative treatments for autoimmune diseases. The company’s CEO, Dr. Arthur T. Sands, highlighted the partnership’s role in bolstering their mutual drug discovery efforts and bringing non-dilutive capital to Nurix.
Under the terms of the agreement, Sanofi has the right to license drug candidates emerging from the collaboration. Nurix retains the option to co-develop and co-promote up to two future products in the United States, sharing profits and losses equally with Sanofi. For programs Nurix opts not to co-develop, it will still receive milestones and royalties based on global development and sales.
Nurix’s pipeline includes clinical and preclinical stage drug candidates, with a focus on targeted protein degradation medicines for cancer and inflammatory diseases. Their partnered drug discovery pipeline also includes preclinical degraders of IRAK4 and STAT6, among others, with collaborations involving Gilead Sciences, Inc., Pfizer Inc., and now Sanofi.
The company’s DEL-AI platform is cited as a significant factor in advancing the discovery and development of new drugs. This partnership with Sanofi is part of Nurix’s broader strategy to expand its pipeline and introduce new treatment options for patients with autoimmune and inflammatory disorders. With revenue of $54.55 million in the last twelve months and a market capitalization of approximately $795 million, investors can access detailed analysis and 12 additional key insights through InvestingPro’s comprehensive research reports.
The financial details and specifics of the target involved in this program are based on a press release statement from Nurix Therapeutics.
In other recent news, Nurix Therapeutics has been granted Orphan Drug Designation by the FDA for its treatment bexobrutideg, intended for Waldenström macroglobulinemia, a rare type of non-Hodgkin’s lymphoma. This designation provides benefits like tax credits and market exclusivity, supporting the drug’s development. Nurix is actively enrolling patients in a Phase 1b trial for this treatment. Additionally, Nurix has made inducement grants to 13 new employees, offering stock options and restricted stock units as part of its 2024 Equity Inducement Plan. The company has also expanded its board of directors with the addition of Dr. Roy D. Baynes, a veteran in oncology, who brings significant expertise in drug development.
Stifel analysts have raised their price target for Nurix to $36, reaffirming a Buy rating, indicating optimism about the company’s pipeline, particularly the progress of NX-5948. In contrast, Needham analysts have slightly lowered their price target to $28 but maintained a Buy rating, noting the company’s solid cash reserves and anticipated research and development expenses. Nurix reported approximately $13 million in collaboration revenue for 2024, with a notable contribution from Pfizer. These developments highlight Nurix’s ongoing efforts and strategic moves in advancing its clinical programs and strengthening its organizational structure.
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