Marinus (NASDAQ:MRNS) Pharmaceuticals, Inc. (NASDAQ:MRNS), a biopharmaceutical company currently valued at $20.5 million, announced today that it has terminated its collaboration and supply agreements with Orion Corporation.
According to InvestingPro analysis, the company appears undervalued despite facing significant cash burn challenges. This decision, effective as of last Monday, is part of Marinus's strategic review of its alternatives.
The terminated agreements included a Collaboration Agreement dated July 30, 2021, a Manufacturing and Supply Agreement from October 24, 2022, and related ancillary agreements. As a result of this termination, Orion will be relieved from a pending €500,000 development cost payment for Q4 2024. The company's stock has shown high volatility, with a significant 56% return over the past week, though it remains down 96% year-to-date.
Marinus will be obligated to pay Orion €1,500,000 under specific conditions. The payment is due within ten business days following the first occurrence of either a significant transaction involving the sale of Marinus's assets related to ganaxolone, a merger or change of control of Marinus, or by June 30, 2025.
The company's decision to terminate these agreements aligns with its ongoing assessment of strategic directions. The termination and mutual release of claims mark a significant shift in Marinus Pharmaceuticals' business relationships and could influence its future operations and financial arrangements. For deeper insights into MRNS's strategic position and financial health, including 13 additional ProTips and comprehensive analysis, visit InvestingPro for the full research report.
In other recent news, Marinus Pharmaceuticals has initiated a retention plan for its executives, aiming to incentivize key figures to remain during a period of strategic exploration. The company is also facing a risk of delisting from the Nasdaq due to a failure to meet minimum bid price and market value requirements. Significant changes in the board structure have occurred, with three members resigning. Additionally, Marinus Pharmaceuticals had a setback with the failed Phase III trial of its drug ganaxolone, leading to stock downgrades by Jefferies, Baird, and Truist Securities.
Despite these challenges, the company reported Q2 net product revenues of $8 million, primarily due to ZTALMY, and plans to launch ZTALMY for tuberous sclerosis complex in 2025, targeting net product revenues between $33 million and $35 million for 2024. Marinus has also secured a new U.S. patent for ZTALMY, set to expire in September 2042. Analysts at TD Cowen and Oppenheimer have maintained a Buy rating and upgraded the stock to Outperform, respectively.
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