Pyxis Oncology sells royalty rights to Novartis for $8 million By Investing.com
BOSTON – Pyxis Oncology, Inc. (NASDAQ: PYXS), a clinical-stage biopharmaceutical company, announced the sale of its royalty rights for Beovu® and another asset to Novartis AG (SIX:) for $8 million. This transaction is part of the company’s strategic financial initiatives to support its lead Antibody-Drug Conjugate (ADC) asset, PYX-201, without diluting shareholder value.
The sold royalties were part of Pyxis Oncology’s acquisition of Apexigen, Inc. in August 2023, which included rights to royalties from products developed using Apexigen’s APXiMAB platform. Pyxis Oncology retains rights to three additional antibodies in development that were also discovered through the APXiMAB platform.
President and CEO of Pyxis Oncology, Lara S. Sullivan, M.D., stated that the capital would aid in advancing the development of PYX-201, which the company views as a promising therapeutic candidate. PYX-201 is designed to target EDB+FN within the tumor stroma and is currently being evaluated in Phase 1 clinical studies for the treatment of multiple types of solid tumors.
The $8 million payment from Novartis will be recorded by Pyxis Oncology in Q1 2024, and the company anticipates that it may earn future payments associated with the three retained antibody programs.
Pyxis Oncology focuses on creating therapies for difficult-to-treat cancers, including an ADC program and immuno-oncology (IO) strategies. The company’s candidates aim to address cancer’s aggressive proliferation and immune evasion.
This news report is based on a press release statement from Pyxis Oncology.
InvestingPro Insights
As Pyxis Oncology, Inc. (PYXS) navigates the clinical-stage biopharmaceutical landscape, a glimpse at the company’s financial health and market performance offers valuable context to stakeholders. With a market capitalization of $222.65 million, the company’s financial initiatives, such as the recent sale of royalty rights, are crucial in bolstering its pipeline without impacting shareholder equity.
InvestingPro data reveals a volatile journey for PYXS, with a significant 120.11% return over the last three months, indicating a strong short-term performance. Nonetheless, the stock has experienced a considerable dip with a -29.47% return in the past week and a -39.87% return over the last month, suggesting recent market challenges.
Despite this, an InvestingPro Tip highlights that PYXS holds more cash than debt on its balance sheet, which is a positive sign for investors looking at the company’s ability to fund operations and weather financial storms. However, it’s important to note that analysts do not expect the company to be profitable this year, and the stock has been flagged for its weak gross profit margins and high cash burn rate.
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