Sanofi Halts STAT6 Program; Nurix Therapeutics Falls Over 30% in Premarket as Milestone Payments and Royalties Vanish

Stock News11-04

Nurix Therapeutics (NRIX.US) extended its prior after-hours decline into Wednesday's premarket session after announcing that its partner Sanofi SA (SNY.US) has decided to discontinue research on an experimental inflammatory disease therapy.

As of the latest reading, Nurix Therapeutics (NRIX.US) shares were down 32.96% at $17.31.

The decision was disclosed on Tuesday. It came just months after the French pharmaceutical giant initiated Phase 1 clinical development in August for SAR448272, a STAT6 degrader targeting type 2 inflammatory diseases, for which it had paid Nurix Therapeutics (NRIX.US) a $10 million milestone payment.

With Sanofi SA (SNY.US) terminating the Phase 1 first-in-human clinical trial and fully abandoning the program, the California-based biotechnology company will no longer be eligible to receive related development, regulatory, and commercialization milestone payments, as well as potential sales royalties.

However, the company stated that as of August 31, it held $1.1 billion in cash, cash equivalents, and marketable securities, and reiterated its recently issued guidance that its funds can support operations into the second half of 2029.

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