In a significant move within the pharmaceutical industry, Amylyx Pharmaceuticals, Inc. has completed the acquisition of Avexitide assets from Eiger BioPharmaceuticals, Inc. The transaction, which closed on Monday, was approved by the United States Bankruptcy Court for the Northern District of Texas on June 26, 2024.
Under the terms of the Asset Purchase Agreement finalized on June 21, 2024, Amylyx, a Delaware corporation trading on the Nasdaq Global Select Market under the ticker NASDAQ:AMLX, has paid $35.1 million, in addition to determined cure costs and assumed liabilities, to acquire substantial rights, title, and interests in Avexitide. Avexitide is currently in development and has potential future use in the manufacture and commercialization of pharmaceutical preparations.
The acquisition is a strategic step for Amylyx, expanding its portfolio and capabilities in drug development and commercialization. While the company has expressed optimism about the future development and potential approval of Avexitide, they have also issued cautionary notes regarding forward-looking statements.
Amylyx's management has not provided specific details on the development timeline or commercialization plans for Avexitide following the closure of the sale. However, they have acknowledged the challenges and uncertainties that could impact their ability to successfully bring Avexitide to market.
This report is based on information disclosed in a recent SEC filing by Amylyx Pharmaceuticals, Inc.
In other recent news, Amylyx Pharmaceuticals, Inc. reported significant developments, including financial results and strategic moves. Amylyx disclosed a net loss of $118.8 million and net product revenues of $88.6 million for the first quarter of 2024. The company has initiated a restructuring plan, including workforce reduction, to extend its cash runway until 2026 and refocus on research and development.
Mizuho Securities recently adjusted its outlook on Amylyx, lowering the 12-month price target to $3 from $4 while maintaining a neutral rating. This revision follows Amylyx's decision to withdraw their drug Relyvrio/AMX0035 from the market after negative outcomes from the Phase 3 PHOENIX study.
Despite this setback, Amylyx shared promising results from a study in Wolfram syndrome and plans to engage with the FDA based on positive interim data. These are among the recent developments in the company.
InvestingPro Insights
As Amylyx Pharmaceuticals, Inc. forges ahead with its acquisition of Avexitide from Eiger BioPharmaceuticals, Inc., it’s crucial to understand the financial health and market dynamics of Eiger BioPharmaceuticals, which could influence the strategic outcomes of the deal. InvestingPro data sheds light on Eiger's market presence and performance leading up to this transaction.
With a market capitalization of $17.03 million, Eiger BioPharmaceuticals appears to be a relatively smaller player within the pharmaceutical landscape. The company's revenue growth has been notable, with an increase of 16.98% over the last twelve months as of Q4 2023 and a quarterly revenue growth of 41.06% in Q1 2023. This suggests a positive trajectory in terms of sales, which may have made Avexitide an attractive asset for Amylyx. However, the gross profit margin stands at an impressive 99.85%, indicating that nearly all of Eiger's revenue is gross profit.
Despite these positive indicators, Eiger has faced challenges, as reflected in the InvestingPro Tips. The stock is quickly burning through cash, and analysts do not anticipate the company will be profitable this year. Additionally, the stock price movements have been quite volatile, which is a crucial factor for investors to consider. Moreover, the company's short-term obligations exceed its liquid assets, which could have implications for its financial stability and the sustainability of its operations.
For readers interested in a deeper dive into the financial dynamics of Eiger BioPharmaceuticals, InvestingPro offers an array of additional insights. Currently, there are 11 more InvestingPro Tips available to help investors understand the nuances of Eiger's financial situation and market performance. To access these valuable insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/EIGRQ.
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