TEL AVIV - BioLineRx Ltd . (NASDAQ: NASDAQ:BLRX) (TASE: BLRX), a biopharmaceutical company focusing on oncology and rare diseases, has recently undergone a strategic transformation following the FDA approval and commercial launch of its product APHEXDA® (motixafortide) in September 2023. According to InvestingPro data, the company's stock has experienced significant volatility, falling over 90% in the past year, though analysis suggests the stock may be undervalued at current levels. The company announced exclusive licensing agreements with Ayrmid Ltd. and Guangzhou Gloria Biosciences Co., Ltd. (GloriaBio) that have provided significant non-dilutive capital and retained potential for royalties and future milestones.
The agreement with Ayrmid, announced in November 2024, grants Ayrmid the rights to develop and commercialize APHEXDA across various indications, excluding solid tumors and Asia. BioLineRx received a $10 million upfront payment and is eligible for up to $87 million in potential commercial milestones, plus royalties of 18% to 23% on net sales. Additionally, Ayrmid's principal shareholder, Highbridge Capital Management LLC, made a $9 million equity investment in BioLineRx.
GloriaBio's deal, disclosed in August 2023, allows them to commercialize motixafortide in the Asian market, including for stem cell mobilization (SCM) and pancreatic ductal adenocarcinoma (PDAC). BioLineRx received a $15 million upfront payment and could receive up to approximately $50 million in potential development and regulatory milestones in China and Japan, as well as up to roughly $200 million in potential commercial milestones. The agreement also included a $14.6 million equity investment in BioLineRx.
Referred to as 'BioLineRx 2.0', the company has returned to its roots as a lean drug development company. It retained rights to develop motixafortide for solid tumor indications outside Asia and is supporting ongoing PDAC trials at minimal cost. BioLineRx plans to in-license additional assets in oncology and rare diseases over the next two years.
Financially, the transactions with Ayrmid and GloriaBio, coupled with a $10 million equity financing in early January and a reduced operating burn rate of approximately $12 million per year, are expected to provide BioLineRx with a cash runway through the second half of 2026. InvestingPro analysis reveals the company operates with a moderate debt level, with a debt-to-equity ratio of 3.48 and maintains a current ratio of 1.52, indicating adequate short-term liquidity despite rapid cash burn. This forecast does not account for potential revenue from sales royalties or commercial milestones.
To maintain compliance with Nasdaq's minimum bid price requirement, BioLineRx announced a ratio change of its American Depositary Shares to ordinary shares, effectively a 1-for-40 reverse stock split, set to take effect on January 30, 2025.
The company's CEO, Philip Serlin, expressed confidence in BioLineRx's position to create value for shareholders and advance novel therapeutics for patients with cancer or rare diseases. BioLineRx will report its fourth quarter 2024 results in March. While InvestingPro data shows analysts anticipate sales growth in the current year, they don't expect profitability in the near term. For deeper insights into BioLineRx's financial health and growth prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of the company's performance metrics and future potential.
This article is based on a press release statement from BioLineRx Ltd.
In other recent news, BioLineRx has seen significant developments following its third-quarter financial results. The company reported an earnings per share (EPS) of ($0.07), a deviation from H.C. Wainwright's estimate of ($0.01). BioLineRx's revenue for the quarter was $4.9 million, slightly surpassing the estimated $4.8 million. This revenue included $3.2 million from an upfront payment by Gloria Biosciences and $1.7 million from U.S. sales of APHEXDA.
Additionally, BioLineRx's cash burn is expected to decrease significantly by over 70% following its licensing agreement with Ayrmid Ltd., an equity investment, and debt repayment. This fiscal prudence is anticipated to leave BioLineRx with approximately $20 million to fund its operations into 2026. The company is also actively progressing in its clinical trials, with continued enrollment in the CheMo4METPANC Phase 2b trial in collaboration with Columbia University.
Furthermore, Gloria Biosciences has received approval from China's Center for Drug Evaluation for a stem cell mobilization bridging study Investigational New Drug (IND) application in multiple myeloma. Finally, BioLineRx reported a net loss of $5.8 million in its Q3 2024 earnings call, a considerable improvement from the $16 million loss in the same quarter of the previous year. These are recent developments that highlight the company's strategic focus on clinical development and its efforts to improve its financial standing.
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