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Bayer, NextRNA to Develop Therapeutics Targeting Oncology
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Pharma giant Bayer (BAYRY - Free Report) announced a collaboration and license agreement with biotechnology company NextRNA Therapeutics.
NextRNA Therapeutics is a biotechnology company focused on developing transformative medicines to address long non-coding RNA (lncRNA)-driven diseases with a primary focus on oncology and neuroscience.
The collaboration is aimed at developing small molecule therapeutics targeting lncRNAs in oncology.
Year to date, shares of Bayer have lost 16.8% against the industry’s growth of 26.9%.
Image Source: Zacks Investment Research
BAYRY Gains Access to lncRNA Technology
lncRNAs represent a broad class of therapeutic targets that use RNA-binding proteins (RBPs) to drive pathological processes across diseases. Through the deal, Bayer has gained access to NextRNA’s differentiated approach to inhibit the function of lncRNAs by disrupting the interaction between lncRNAs and RBPs with small molecules.
Bayer and NextRNA will jointly advance two oncology programs for diseases where existing treatments are not enough. The first program is a lncRNA-targeting small molecule program, which is currently in early preclinical development at NextRNA.
For the second program, NextRNA will use lncRNA targets that its platform has already identified. Bayer will have the option to select one target for joint development.
How Much Will Bayer Pay for the Deal?
Per the terms of the agreement, Bayer will pay $547 million to NextRNA for both programs. The payment includes upfront and near-term milestone payments, research funding, development and commercial milestone payments, as well as tiered royalties on net sales.
BAYRY’s Efforts to Strengthen Pipeline/Portfolio
Bayer is looking to revive its pharmaceutical portfolio amid generic competition for Xarelto and challenges for its Crop Science Division.
The company has strengthened its pharmaceutical research and pipeline in the field of small molecules and precision therapeutics with the acquisition of Vividion.
Earlier, Bayer collaborated with Thermo Fisher Scientific Inc. to co-develop next-generation sequencing-based companion diagnostic assays for its growing precision oncology portfolio.
BAYRY, together with its subsidiaries BlueRock and AskBio, is also developing preclinical and clinical cell and gene therapies. It has quite a few phase III studies ongoing on new candidates and the label expansion of the existing drugs.
Bayer is working to get a higher dose of Eylea approved. It is also working on the label expansion of Nubeqa and Kerendia in various indications.
The company recently submitted a new drug application for the investigational compound elinzanetant to the FDA for the treatment of moderate to severe vasomotor symptoms (VMS, also known as hot flashes) associated with menopause.
However, the late-stage study, OCEANIC-AF, investigating asundexian compared with direct oral anticoagulant Eliquis (apixaban) in patients with atrial fibrillation and at risk for stroke, was stopped early due to the lack of efficacy. This was a major setback, given the candidate’s potential.
Pipeline setbacks and regulatory setbacks have weighed on the stock in recent times. Bayer’s pipeline needs to deliver amid the current circumstances.
In light of these challenges, Bayer is implementing a new operating model to reduce hierarchies, eliminate bureaucracy, streamline structures and accelerate decision-making processes. The company is also undertaking significant job cuts.
Estimates for Eli Lilly’s 2024 earnings have risen from $13.71 to $15.77 per share over the past 30 days. For 2025, the bottom-line estimate has risen from $19.42 to $22.79 over the same timeframe. Year to date, Lilly’s shares have risen 62.8%.
In the past 60 days, estimates for EXEL’s 2024 earnings per share have moved north to $1.79 from $1.39. Year to date, shares of EXEL have risen 7.7%.
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Bayer, NextRNA to Develop Therapeutics Targeting Oncology
Pharma giant Bayer (BAYRY - Free Report) announced a collaboration and license agreement with biotechnology company NextRNA Therapeutics.
NextRNA Therapeutics is a biotechnology company focused on developing transformative medicines to address long non-coding RNA (lncRNA)-driven diseases with a primary focus on oncology and neuroscience.
The collaboration is aimed at developing small molecule therapeutics targeting lncRNAs in oncology.
Year to date, shares of Bayer have lost 16.8% against the industry’s growth of 26.9%.
Image Source: Zacks Investment Research
BAYRY Gains Access to lncRNA Technology
lncRNAs represent a broad class of therapeutic targets that use RNA-binding proteins (RBPs) to drive pathological processes across diseases. Through the deal, Bayer has gained access to NextRNA’s differentiated approach to inhibit the function of lncRNAs by disrupting the interaction between lncRNAs and RBPs with small molecules.
Bayer and NextRNA will jointly advance two oncology programs for diseases where existing treatments are not enough. The first program is a lncRNA-targeting small molecule program, which is currently in early preclinical development at NextRNA.
For the second program, NextRNA will use lncRNA targets that its platform has already identified. Bayer will have the option to select one target for joint development.
How Much Will Bayer Pay for the Deal?
Per the terms of the agreement, Bayer will pay $547 million to NextRNA for both programs. The payment includes upfront and near-term milestone payments, research funding, development and commercial milestone payments, as well as tiered royalties on net sales.
BAYRY’s Efforts to Strengthen Pipeline/Portfolio
Bayer is looking to revive its pharmaceutical portfolio amid generic competition for Xarelto and challenges for its Crop Science Division.
The company has strengthened its pharmaceutical research and pipeline in the field of small molecules and precision therapeutics with the acquisition of Vividion.
Earlier, Bayer collaborated with Thermo Fisher Scientific Inc. to co-develop next-generation sequencing-based companion diagnostic assays for its growing precision oncology portfolio.
BAYRY, together with its subsidiaries BlueRock and AskBio, is also developing preclinical and clinical cell and gene therapies. It has quite a few phase III studies ongoing on new candidates and the label expansion of the existing drugs.
Bayer is working to get a higher dose of Eylea approved. It is also working on the label expansion of Nubeqa and Kerendia in various indications.
The company recently submitted a new drug application for the investigational compound elinzanetant to the FDA for the treatment of moderate to severe vasomotor symptoms (VMS, also known as hot flashes) associated with menopause.
However, the late-stage study, OCEANIC-AF, investigating asundexian compared with direct oral anticoagulant Eliquis (apixaban) in patients with atrial fibrillation and at risk for stroke, was stopped early due to the lack of efficacy. This was a major setback, given the candidate’s potential.
Pipeline setbacks and regulatory setbacks have weighed on the stock in recent times. Bayer’s pipeline needs to deliver amid the current circumstances.
In light of these challenges, Bayer is implementing a new operating model to reduce hierarchies, eliminate bureaucracy, streamline structures and accelerate decision-making processes. The company is also undertaking significant job cuts.
BAYRY’s Zacks Rank & Stocks to Consider
BAYRY currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the pharma/biotech industry are Eli Lilly (LLY - Free Report) and Exelixis (EXEL - Free Report) , both carrying 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 Eli Lilly’s 2024 earnings have risen from $13.71 to $15.77 per share over the past 30 days. For 2025, the bottom-line estimate has risen from $19.42 to $22.79 over the same timeframe. Year to date, Lilly’s shares have risen 62.8%.
In the past 60 days, estimates for EXEL’s 2024 earnings per share have moved north to $1.79 from $1.39. Year to date, shares of EXEL have risen 7.7%.