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NeuBase (NBSE) Surges 107% on New Shareholder Acquiring Stake

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NeuBase Therapeutics’ (NBSE - Free Report) shares skyrocketed 107% on Wednesday after Symetryx Corporation announced that it has acquired a 20% equity stake in the company. This stake, acquired by Symetryx from the open market, makes it NeuBase’s largest shareholder.

Headquartered in Canada, Symetryx Corporation is a privately-owned venture capital firm.

NeuBase Therapeutics is focused on developing precision genetic medicines targeting rare, monogenic diseases for which no approved therapies or more common genetic disorders are resistant to currently available therapies. NBSE halted the development of all its pipeline programs and is exploring potential strategic alternatives for its business operations (including mergers, acquisitions and business combinations).

In the year so far, shares of NeuBase have lost 37.4% compared with the industry’s 13.9% fall.

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Following the stake acquisition, Symetryx has stated that it would like to work closely with NeuBase to ensure that the company’s assets are utilized judiciously to maximize shareholder value. In this regard, it has urged NeuBase’s board of directors to issue a special dividend of $1 per share.

NeuBase’s cash balance as of June 2023-end stood at around $14.7 million. Per Symetryx, many companies exhaust their cash balances while exploring strategic alternatives. It believes that the idle cash position alone makes NBSE an attractive merger candidate. At the same time, the announcement of dividends will create value for shareholders.

Symetryx also states that it has met the management, which is receptive to the ongoing discussion. This indicates that both parties are committed to finding a mutually beneficial path forward. With NeuBase yet to announce/disclose any update on its plans, Symetryx’s role as a strategic partner could likely help create substantial value for all other remaining company shareholders.

 

Zacks Rank & Stocks to Consider

NeuBase currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector include Annovis Bio (ANVS - Free Report) , Dynavax Technologies (DVAX - Free Report) and Gracell Biotechnologies , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Annovis Bio’s 2023 loss per share have narrowed from $4.89 to $4.38. During the same period, the loss estimates per share for 2024 have improved from $3.18 to $2.77. Year to date, shares of Annovis have lost 14.5%.

Earnings of Annovis Bio beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 13.40% on average. In the last reported quarter, Annovis’ earnings beat estimates by 6.14%.

In the past 60 days, estimates for Dynavax Technologies’ 2023 loss per share have improved from 56 cents to 24 cents. During the same period, the estimates per share for 2024 rose from a loss of 24 cents to earnings of 2 cents. Year to date, shares of Dynavax have risen 30.5%.

Earnings of Dynavax Technologies beat estimates in two of the trailing four quarters and missed in the remaining two, the average surprise being 25.78%. In the last reported quarter, Dynavax Technologies’ earnings beat estimates by 133.33%.

In the past 60 days, estimates for Gracell Biotechnologies’ 2023 loss per share have improved from $1.53 to $1.23. During the same period, the loss estimates per share for 2024 have narrowed down from $1.65 to $1.33. Year to date, shares of Gracell have risen 41.3%.

Earnings of Gracell Biotechnologies beat estimates in two of the trailing four quarters and missed the mark on one occasion while meeting the same on another. On average, the company has reported a negative surprise of 62.71%. In the last reported quarter, Gracell Biotechnologies’ earnings beat estimates by 18.92%.


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