Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX), a biopharmaceutical company focused on developing therapies for the treatment of neurodegenerative diseases, announced today a collaboration with Gubra A/S, aiming to develop a novel long-acting GLP-1 receptor antagonist.
The company, currently valued at $263.48 million, has seen its shares decline 73.71% year-to-date, though InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model.
The partnership, revealed on Monday, centers around the identification and subsequent development of a lead candidate for investigational new drug (IND)-enabling studies. Amylyx has the option to lead the development after the candidate has been identified.
Under the terms of the agreement, Amylyx will make a modest upfront payment alongside research payments to Gubra. Additionally, Gubra is eligible to receive over $50 million in development and commercialization milestones, plus mid-single-digit royalties on global net sales. The financial terms are not considered material to Amylyx's financial position, with the company maintaining its cash runway projection into 2026. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 4.55, and has received a "GOOD" overall Financial Health Score of 2.5.
Amylyx's collaboration with Gubra represents its commitment to expanding its pipeline beyond neurodegenerative diseases and into metabolic disorders like diabetes. The Cambridge, MA-based company, incorporated in Delaware, continues to focus on advancing its research and development initiatives.
Amylyx's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2023, detail these risks further. For a comprehensive analysis of Amylyx's financial health, growth prospects, and valuation metrics, access the detailed Pro Research Report available exclusively on InvestingPro, part of the platform's coverage of over 1,400 US stocks.
In other recent news, Amylyx Pharmaceuticals has been making significant strides in its drug development. The company's promising drug avexitide, set for a critical Phase 3 trial, has received a Buy rating from H.C. Wainwright, a Neutral rating from Goldman Sachs (NYSE:GS), and an upgrade to Outperform from Baird. These recent assessments reflect optimism about avexitide's potential to treat post-bariatric hypoglycemia (PBH), a condition currently lacking approved drugs.
Amylyx's recent acquisition of avexitide from Eiger BioPharmaceuticals has been a focal point in these evaluations. The drug's Phase 3 trial is designed to build on the success of previous trials, with an aim to significantly reduce hypoglycemic events. The potential market opportunity for avexitide within PBH, despite its rarity and unclear prevalence, has been a topic of discussion among analysts.
On the financial front, Amylyx reported a net loss of $72.7 million in their Third Quarter 2024 Earnings Conference Call, largely due to research and development and administrative expenses. However, the company maintains a strong financial standing with $234.4 million in cash and investments, indicating a projected cash runway into 2026.
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