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Neoleukin (NLTX) Stops Development of Lead Drug, Stock Down
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Shares of Neoleukin Therapeutics lost 19.9% on Nov 15 after management announced that it has decided to discontinue the development of the lead pipeline candidate, NL-201, for strategic reasons. The share price most likely fell as Neoleukin now has no other pipeline candidate in active clinical development.
An IL-2/IL-5 agonist, NL-201, was Neoleukin’s first de novo protein evaluated in clinical studies. The decision to discontinue development was based on preliminary monotherapy data from a phase I study on NL-201, which did not demonstrate significant immunogenicity even after multiple cycles of therapy.
Using its findings from the NL-201 study, management concluded that it would be beneficial to dedicate its resources to developing next-generation de novo protein therapeutics instead of utilizing the same on NL-201.
Shares of Neoleukin Therapeutics have plunged 91.2% in the year compared with the industry’s 19.3% decline.
Image Source: Zacks Investment Research
Following its decision to discontinue developing NL-201, Neoleukin’s board of directors approved a restructuring plan to reduce its existing workforce by nearly 40%. This reduction in the workforce and the discontinuation development of NL-201 will result in cost savings. These savings will help management extend Neoleukin’s current cash runway into second-half 2025.
Management also discontinued plans for all future clinical studies evaluating NL-201, including a phase I study in hematological malignancies. Earlier this May, the company initiated a combination arm in the ongoing phase I study. This combination arm evaluated the safety and efficacy of NL-201 plus Merck’s PD-1/PD-L1 inhibitor Keytruda in patients with relapsed or refractory solid tumors.
Alongside the discontinuation decision, the company also announced its earnings results for third-quarter 2023. Neoleukin posted an earnings loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 32 cents and the year-ago quarter’s loss of 28 cents. The company did not record any revenues during the quarter.
In the past 60 days, estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53. During the same period, the loss estimates per share for 2023 have narrowed from $1.54 to $1.43. Shares of Angion Biomedica have plunged 70.7% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark once, witnessing a surprise of 62.85% on average. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.
In the past 60 days, estimates for Celularity’s 2022 loss per share have narrowed from 84 cents to 64 cents. During the same period, the loss estimates per share for 2023 have narrowed from $1.04 to $1.02. Shares of Celularity have plunged 61.3% in the year-to-date period.
Earnings of Celularity beat estimates in three of the last four quarters and missed the mark once, witnessing a surprise of 51.01% on average. In the last reported quarter, CELU delivered an earnings surprise of 111.54%.
In the past 60 days, estimates for Entera Bio’s 2022 loss per share have narrowed from 69 cents to 55 cents. During the same period, the loss estimates per share for 2023 have narrowed from 93 cents to 80 cents. Shares of Entera Bio have plunged 80.9% in the year-to-date period.
Earnings of Entera Bio beat estimates in each of the last four quarters, witnessing a surprise of 89.07% on average. In the last reported quarter, ENTX delivered an earnings surprise of 31.25%.
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Neoleukin (NLTX) Stops Development of Lead Drug, Stock Down
Shares of Neoleukin Therapeutics lost 19.9% on Nov 15 after management announced that it has decided to discontinue the development of the lead pipeline candidate, NL-201, for strategic reasons. The share price most likely fell as Neoleukin now has no other pipeline candidate in active clinical development.
An IL-2/IL-5 agonist, NL-201, was Neoleukin’s first de novo protein evaluated in clinical studies. The decision to discontinue development was based on preliminary monotherapy data from a phase I study on NL-201, which did not demonstrate significant immunogenicity even after multiple cycles of therapy.
Using its findings from the NL-201 study, management concluded that it would be beneficial to dedicate its resources to developing next-generation de novo protein therapeutics instead of utilizing the same on NL-201.
Shares of Neoleukin Therapeutics have plunged 91.2% in the year compared with the industry’s 19.3% decline.
Image Source: Zacks Investment Research
Following its decision to discontinue developing NL-201, Neoleukin’s board of directors approved a restructuring plan to reduce its existing workforce by nearly 40%. This reduction in the workforce and the discontinuation development of NL-201 will result in cost savings. These savings will help management extend Neoleukin’s current cash runway into second-half 2025.
Management also discontinued plans for all future clinical studies evaluating NL-201, including a phase I study in hematological malignancies. Earlier this May, the company initiated a combination arm in the ongoing phase I study. This combination arm evaluated the safety and efficacy of NL-201 plus Merck’s PD-1/PD-L1 inhibitor Keytruda in patients with relapsed or refractory solid tumors.
Alongside the discontinuation decision, the company also announced its earnings results for third-quarter 2023. Neoleukin posted an earnings loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 32 cents and the year-ago quarter’s loss of 28 cents. The company did not record any revenues during the quarter.
Neoleukin Therapeutics, Inc. Price
Neoleukin Therapeutics, Inc. price | Neoleukin Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Neoleukin currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Angion Biomedica , Celularity (CELU - Free Report) and Entera Bio (ENTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53. During the same period, the loss estimates per share for 2023 have narrowed from $1.54 to $1.43. Shares of Angion Biomedica have plunged 70.7% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark once, witnessing a surprise of 62.85% on average. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.
In the past 60 days, estimates for Celularity’s 2022 loss per share have narrowed from 84 cents to 64 cents. During the same period, the loss estimates per share for 2023 have narrowed from $1.04 to $1.02. Shares of Celularity have plunged 61.3% in the year-to-date period.
Earnings of Celularity beat estimates in three of the last four quarters and missed the mark once, witnessing a surprise of 51.01% on average. In the last reported quarter, CELU delivered an earnings surprise of 111.54%.
In the past 60 days, estimates for Entera Bio’s 2022 loss per share have narrowed from 69 cents to 55 cents. During the same period, the loss estimates per share for 2023 have narrowed from 93 cents to 80 cents. Shares of Entera Bio have plunged 80.9% in the year-to-date period.
Earnings of Entera Bio beat estimates in each of the last four quarters, witnessing a surprise of 89.07% on average. In the last reported quarter, ENTX delivered an earnings surprise of 31.25%.