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Nurix advances inflammation drug research with Sanofi partnershi

EditorEmilio Ghigini
Published 09/04/2024, 09:50 pm
NRIX
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SAN FRANCISCO - Nurix Therapeutics, Inc. (NASDAQ:NRIX), a biopharmaceutical company focused on developing drugs for cancer and inflammatory diseases, announced the extension of its research collaboration with Sanofi (EPA:SASY) (NASDAQ:SNY), aimed at developing an oral STAT6 degrader as a potential treatment for type 2 inflammation. This extension is part of an ongoing program targeting STAT6, a transcription factor implicated in allergic conditions.

The company's chief scientific officer, Gwenn M. Hansen, Ph.D., highlighted the promising preclinical data, which suggests that targeted degradation of STAT6 can rapidly and effectively block inflammatory signaling. Nurix anticipates nominating a clinical candidate from this program within the next twelve months.

Nurix's collaboration with Sanofi combines its expertise in targeted protein degraders with Sanofi's knowledge in inflammation and immunology. Arthur T. Sands, M.D., Ph.D., president and CEO of Nurix, expressed enthusiasm for the partnership's progress and its potential to yield new therapeutic options for patients.

Under the terms of the agreement, which began in December 2019, Nurix is utilizing its proprietary drug discovery platform to identify novel agents that induce the degradation of specific drug targets through E3 ligases.

Sanofi has the option to license resulting drug candidates, while Nurix retains options to co-develop and co-promote products in the United States. The financial structure of the collaboration includes an initial payment of $55 million from Sanofi, an additional $22 million for expansion, and up to $2.5 billion in potential future milestones, along with royalties on future products.

The extension of the research term underscores the goal of nominating a development candidate in the first year. STAT6 targeting has been supported by human genetic studies and clinical validation with biologics targeting IL4/13 or small molecule inhibitors of the JAK family. However, JAK inhibitors have raised safety concerns due to their broad action on multiple cytokines, positioning a selective STAT6 degrader as a potentially safer and more effective treatment.

This announcement is based on a press release statement from Nurix Therapeutics.

InvestingPro Insights

Amidst the extension of its research collaboration with Sanofi, Nurix Therapeutics (NASDAQ:NRIX) remains a topic of interest for investors monitoring the biopharmaceutical sector. With a current market capitalization of $678.28 million, Nurix is navigating through a crucial phase of its development pipeline. According to real-time data from InvestingPro, Nurix's revenue has shown a substantial growth of 99.31% over the last twelve months as of Q4 2023, signaling a strong upward trajectory in terms of sales.

However, InvestingPro Tips suggest that analysts are bracing for a potential sales decline in the current year, which could impact the company's financial performance. Despite the impressive revenue growth, Nurix has a negative gross profit margin of -145.69%, highlighting challenges in maintaining profitability. Additionally, the company does not pay a dividend, which might deter income-focused investors.

Investors should note that while Nurix holds more cash than debt on its balance sheet, which is a positive sign for financial stability, the company has not been profitable over the last twelve months. The stock price has been quite volatile, with a significant price uptick of 109.41% over the last six months, reflecting investor optimism about the company's prospects. For those considering an investment in Nurix, it's worth noting that the company's liquid assets exceed its short-term obligations, providing some cushion against near-term financial pressures.

To gain deeper insights into Nurix's financial health and future prospects, interested parties can explore additional InvestingPro Tips by visiting https://www.investing.com/pro/NRIX. For a more comprehensive analysis, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 10 InvestingPro Tips that could further inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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