Yahoo Finance Scynexis (SCYX) Inks Antifungal Drug Deal With GSK
Shares of Scynexis SCYX surged almost 76% on Mar 30, after it entered an exclusive license agreement with GSK Plc GSK to commercialize Brexafemme (ibrexafungerp), an antifungal treatment for vulvovaginal candidiasis (VVC) and for the reduction in the incidence of recurrent VVC (RVVC). The agreement will also entitle GSK to develop ibrexafungerp in a phase III study to potentially treat invasive candidiasis (IC).
Brexafemme was launched in 2021 to treat patients with VVC, commonly known as vaginal yeast infection. The drug was approved for RVCC in December 2022. In October 2022, SCYX announced that it is actively pursuing a U.S. commercialization partner to out-license Brexafemme to refocus its resources on the development of ibrexafungerp. As a result, the company began to wind down its promotional activities associated with Brexafemme and has been looking for a partner since then.
Under the agreement, Scynexis will receive an upfront payment of $90 million from GSK. SCYX will be entitled to $245.5 million for development, regulatory and commercial milestones, and a separate $15 million tied to an FDA approval for any additional indication. The latter will also pay sales-related milestones up to $242.5 million and mid-single to mid-teen-digit tiered royalties on the entirety of sales across all indications (in both cases, with the top tier based on achieving net sales greater than $1 billion).
Infectious diseases and HIV represent around two-thirds of GSK's pipeline. Hence, the addition of Brexafemme to its portfolio will complement its late-stage antibiotics, gepotidacin — potentially the first novel antibiotic for uncomplicated urinary tract infections in more than 20 years — and tebipenem, a potential new treatment of complicated urinary tract infections.
Shares of Scynexis have plunged 24% in the past year compared with the industry's 18.2% decline.
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Scynexis will retain its rights over all other assets derived from enfumafungin, with GSK having the first negotiation right over these pre-clinical and discovery stage assets.
SCYX will continue to execute the phase III program for IC and its other ongoing studies for treating life-threatening invasive fungal infections in hospitalized patients. IC is a life-threatening fungal infection caused by Candida that affects the blood or internal organs. The European Medicines Agency had granted Orphan Medicinal Product designation to ibrexafungerp for IC. This designation provides the company with additional market exclusivity and expedited regulatory paths.
SCYNEXIS, Inc. Price and Consensus
SCYNEXIS, Inc. price-consensus-chart | SCYNEXIS, Inc. Quote
Zacks Rank & Stocks to Consider
Currently, Scynexis has a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the same sector are Novo Nordisk NVO and Jasper Therapeutics JSPR. Novo Nordisk sports a Zacks Rank #1 (Strong Buy) and Jasper Therapeutics currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings per share estimates for NVO have increased from $4.18 to $4.49 for 2023 and from $4.7 to $ 5.29 for 2024 in the past 60 days. The company's shares have gained 40% in the past year.
NVO's earnings beat estimates in three of the last four quarters and missed the mark in one, the average surprise being 3%.
Loss per share estimates for Jasper Therapeutics have narrowed from $1.42 to 61 cents for 2023 and from $1.6 to 59 cents for 2024 in the past 60 days. JSPR's shares have plunged 44.9% in the past year.
The company's earnings beat estimates in three of the last four quarters and met the mark in one, the average surprise being 3.51%.
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