ACELYRIN ends key drug development agreement

AGOURA HILLS, CA – ACELYRIN, Inc. (SLRN), a biopharmaceutical company with a market capitalization of approximately $199 million, has terminated its License and Collaboration Agreement with Affibody AB, a Swedish biotech firm, as per a recent SEC filing.

The termination notice was delivered today, marking the start of a 90-day wind-down period. According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet, though it has been rapidly burning through its cash reserves.

The original agreement, effective since August 9, 2021, granted ACELYRIN exclusive rights to develop, commercialize, and manufacture izokibep—a therapeutic product—for human use globally, excluding certain Asian countries due to a pre-existing arrangement with Inmagene Biopharmaceuticals.

The decision to end the agreement will relieve ACELYRIN of any significant financial or other obligations related to the License Agreement once the termination becomes effective.

This move comes as a notable shift in ACELYRIN’s business strategy, as izokibep was a key asset in their product pipeline. The company, which specializes in pharmaceutical preparations, is incorporated in Delaware and has its principal executive offices in Agoura Hills, California.

The information regarding this corporate development is based on a press release statement filed with the SEC. The implications of this termination on ACELYRIN’s future operations and product portfolio remain to be seen. The company’s stock is traded under the ticker SLRN on the Nasdaq Global Select Market.

In other recent news, Acelyrin Inc. has seen several adjustments to its stock target by various firms due to developments in its Phase 3 program. Citi revised its price target for Acelyrin to $3.00 from $6.00, maintaining a neutral rating on the company’s shares. This adjustment followed Acelyrin’s recent unveiling of Phase 3 LONGITUDE program’s trial design for lonigutamab, an anti-IGF1R treatment for Thyroid Eye Disease (TED) patients. Despite some market concerns, the safety profile of lonigutamab appeared clean, potentially offering a competitive edge.

H.C. Wainwright also adjusted its price target for Acelyrin to $6.00 from $8.00, maintaining a neutral rating. The company’s decision to proceed with a 100 mg loading dose followed by 50 mg every two weeks for the next phase was based on updated data which showed that lower doses administered every four weeks were subtherapeutic.

Piper Sandler confirmed its Overweight rating and $20.00 price target for Acelyrin, highlighting the positive Phase 1b/2a data for lonigutamab in treating TED. The firm emphasized the importance of maintaining a certain minimum concentration level to achieve a response in TED treatment. The drug showed a clean safety profile, notably without any cases of hearing loss, audiogram changes, or hyperglycemia.

Acelyrin plans to proceed with Phase 3 trials, which are expected to start in the first quarter of 2025, with interim data anticipated in the second half of 2026. The company’s financial position remains robust, despite rapid cash burn, a common characteristic for clinical-stage biotech firms. TD Cowen has maintained its Buy rating on Acelyrin’s shares, highlighting the progress of lonafarnib, the company’s lead program for TED treatment.

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