SAN FRANCISCO - Nurix Therapeutics Inc. (NASDAQ:NRIX), a biopharmaceutical firm focused on developing therapies for cancer and inflammatory diseases, announced today that Gilead Sciences (NASDAQ:GILD) has decided to extend their ongoing research collaboration by two additional years. This extension aims to generate multiple new clinical candidates.
The original agreement, which began in 2019, has already produced GS-6791 (NX-0479), a development candidate for the treatment of rheumatoid arthritis and other inflammatory diseases. This extension reinforces the partnership's productivity and the potential for further milestones.
Under the renewed terms, Nurix will receive a $15 million extension fee and could earn up to an additional $73.5 million in preclinical research milestones and licensing fees. Furthermore, there is the possibility of up to $1.7 billion in future development, regulatory, and sales milestones, alongside royalties on future products.
Nurix retains the option to co-develop and share profits for up to two programs in the United States on a 50/50 basis. For programs Nurix chooses to co-develop, the company will also be eligible for royalties on sales outside the U.S. and reduced milestone payments.
Since the collaboration's inception, Nurix has received $70 million in payments, including milestones and licensing option exercise payments, in addition to an initial $45 million upfront payment from Gilead.
Nurix's proprietary drug discovery platform employs E3 ligases to induce the degradation of specific drug targets, a novel approach within the ubiquitin-proteasome system. The company's pipeline includes drugs targeting key proteins involved in cancer and immune cell regulation.
The financial details of the extended collaboration were disclosed as part of the announcement, and the information is based on a press release statement from Nurix Therapeutics.
InvestingPro Insights
Nurix Therapeutics Inc. (NASDAQ:NRIX) has shown a dynamic financial and market performance as indicated by the latest InvestingPro data. The company holds a market capitalization of $716.62 million USD, reflecting its presence in the biopharmaceutical industry.
Impressively, Nurix has exhibited a significant revenue growth rate of 99.31% over the last twelve months as of Q4 2023, with an even more remarkable quarterly revenue growth of 123.49% in Q1 2023. This growth momentum is indicative of the company’s expanding research capabilities and potential for future development.
Investors have shown their optimism towards Nurix's prospects, as evidenced by a substantial 6-month price total return of 101.66%, and the stock is currently trading at 90.5% of its 52-week high. The notable price appreciation over the last six months aligns with the company's strategic collaborations and advancements in their drug discovery platform.
Moreover, with a fair value estimation by analysts at $23 USD and InvestingPro’s fair value at $17.29 USD, the current price of $14.7 USD per share may present an attractive entry point for investors.
Two key InvestingPro Tips that could be particularly relevant for investors considering Nurix are: the company holds more cash than debt on its balance sheet, which provides financial flexibility and resilience, and Nurix's liquid assets exceed short-term obligations, indicating a robust liquidity position. These insights suggest a sound financial base for Nurix as it continues to innovate and grow within the pharmaceutical sector.
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