We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Neoleukin (NLTX) Up 36% on Initiating Another Restructuring Plan
Read MoreHide Full Article
Shares of Neoleukin Therapeutics were up 35.8% on Mar 9 after management announced that it has entered into an engagement with SVB Securities for assistance in reviewing strategic alternatives.
These strategic alternatives include a potential sale, merger, divestiture of assets, licensing or other strategic transaction. Management will provide an update to investors on these alternatives once the company enters into a definitive agreement/arrangement or when disclosure is necessary.
Alongside the above alternatives, Neoleukin’s board of directors approved a restructuring plan to preserve cash by reducing its existing workforce by nearly 70%. This reduction is expected to be completed by the end of first-half 2023. The CEO Jonathan Drachman will also be stepping down after a short transition.
Shares of Neoleukin have risen 41.5% in the year-to-date period against the industry’s 5.8% fall.
Image Source: Zacks Investment Research
This is the second time Neoleukin is undertaking a workforce reduction. Last November, the company undertook a restructuring plan to reduce its workforce by nearly 40%.
The company is undertaking these strategic alternatives after it decided to discontinue the development of the lead pipeline candidate, NL-201, for strategic reasons in the last year. 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.
An IL-2/IL-5 agonist, NL-201, was Neoleukin’s first de novo protein evaluated in clinical studies.
Initially, management had concluded that it would be beneficial to dedicate its resources to developing next-generation de novo protein therapeutics. However, given the time and investment required to develop new candidates, management believes that pursuing other strategic options is more viable at this point.
Estimates for Adaptive Biotechnologies’ 2023 loss per share have narrowed from $1.30 to $1.15 in the past 30 days. During the same period, the loss per share estimates for 2024 have narrowed from 99 cents to 94 cents. Shares of Adaptive Biotechnologies have risen 7.6% year-to-date.
Earnings of Adaptive Biotechnologies beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.75%. In the last reported quarter, ADPT delivered an earnings surprise of 24.32%.
In the past 30 days, estimates for CRISPR Therapeutics’ 2023 loss per share have narrowed from $8.21 to $7.39. Shares of CRISPR Therapeutics have risen 12.6% in the year-to-date period.
Earnings of CRISPR Therapeutics beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 3.19%, on average. In the last reported quarter, CRISPR Therapeutics’ earnings beat estimates by 39.22%.
In the past 30 days, estimates for Novo Nordisk’ 2023 earnings per share have risen from $4.20 to $4.43. During the same period, the earnings for 2024 have risen from $4.90 to $5.19. Shares of Novo Nordisk have risen 4.9% in the year-to-date period.
Earnings of Novo Nordisk beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 3.00%, on average. In the last reported quarter, Novo Nordisk’ earnings beat estimates by 2.47%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Neoleukin (NLTX) Up 36% on Initiating Another Restructuring Plan
Shares of Neoleukin Therapeutics were up 35.8% on Mar 9 after management announced that it has entered into an engagement with SVB Securities for assistance in reviewing strategic alternatives.
These strategic alternatives include a potential sale, merger, divestiture of assets, licensing or other strategic transaction. Management will provide an update to investors on these alternatives once the company enters into a definitive agreement/arrangement or when disclosure is necessary.
Alongside the above alternatives, Neoleukin’s board of directors approved a restructuring plan to preserve cash by reducing its existing workforce by nearly 70%. This reduction is expected to be completed by the end of first-half 2023. The CEO Jonathan Drachman will also be stepping down after a short transition.
Shares of Neoleukin have risen 41.5% in the year-to-date period against the industry’s 5.8% fall.
Image Source: Zacks Investment Research
This is the second time Neoleukin is undertaking a workforce reduction. Last November, the company undertook a restructuring plan to reduce its workforce by nearly 40%.
The company is undertaking these strategic alternatives after it decided to discontinue the development of the lead pipeline candidate, NL-201, for strategic reasons in the last year. 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.
An IL-2/IL-5 agonist, NL-201, was Neoleukin’s first de novo protein evaluated in clinical studies.
Initially, management had concluded that it would be beneficial to dedicate its resources to developing next-generation de novo protein therapeutics. However, given the time and investment required to develop new candidates, management believes that pursuing other strategic options is more viable at this point.
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 Adaptive Biotechnologies Corporation (ADPT - Free Report) , CRISPR Therapeutics (ADCT - Free Report) and Novo Nordisk (NVO - Free Report) . While Novo Nordisk sports a Zacks Rank #1 (Strong Buy), Adaptive Biotechnologies and CRISPR Therapeutics carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Adaptive Biotechnologies’ 2023 loss per share have narrowed from $1.30 to $1.15 in the past 30 days. During the same period, the loss per share estimates for 2024 have narrowed from 99 cents to 94 cents. Shares of Adaptive Biotechnologies have risen 7.6% year-to-date.
Earnings of Adaptive Biotechnologies beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.75%. In the last reported quarter, ADPT delivered an earnings surprise of 24.32%.
In the past 30 days, estimates for CRISPR Therapeutics’ 2023 loss per share have narrowed from $8.21 to $7.39. Shares of CRISPR Therapeutics have risen 12.6% in the year-to-date period.
Earnings of CRISPR Therapeutics beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 3.19%, on average. In the last reported quarter, CRISPR Therapeutics’ earnings beat estimates by 39.22%.
In the past 30 days, estimates for Novo Nordisk’ 2023 earnings per share have risen from $4.20 to $4.43. During the same period, the earnings for 2024 have risen from $4.90 to $5.19. Shares of Novo Nordisk have risen 4.9% in the year-to-date period.
Earnings of Novo Nordisk beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 3.00%, on average. In the last reported quarter, Novo Nordisk’ earnings beat estimates by 2.47%.