Nurix Says FDA Approves New Drug Application For Leukemia Trial; Street Is Bullish

Nurix Therapeutics announced that the US Food and Drug Administration (FDA) has approved its Investigational New Drug (IND) application for the treatment of NX-2127 in patients with relapsed and refractory B-cell malignancies. Shares of the company closed at $39.93 on Feb. 16, up almost 3.4%.

Following the FDA clearance, the biopharmaceutical company expects to dose the first patient in a Phase 1a/1b trial for NX-2127 in the first quarter of 2021. Also, three additional drugs are expected to undergo clinical trials in 2021.

Nurix (NRIX) CEO Arthur Sands said, “We begin 2021 with a positive notification from the FDA that our first Phase 1 clinical trial of NX-2127 may proceed in patients with B cell malignancies, including chronic lymphocytic leukemia.”

“We look forward to a very exciting year as we generate clinical data that can support further development of NX-2127, a first-in-class targeted protein degrader of BTK, a highly validated target for hematologic malignancies,” he added. (See Nurix stock analysis on TipRanks)

Nurix also posted 4Q and FY20 results. The company incurred a loss of $0.51 per share in 4Q, compared to the $0.54 loss per share estimated by analysts. Total collaboration revenue generated in the quarter amounted to $6.7 million, above analysts’ expectations of $3.94 million.

Following the release, Piper Sandler analyst Tyler Van Buren ramped up the stock’s price target to $60 (50.3% upside potential) from $40 and reiterated a Buy rating. The analyst said Nurix is now a “clinical stage company” after the FDA cleared its first IND application for NX-2127.

Nurix shares have exploded 67% over the past six months, while the stock still scores a Strong Buy consensus rating based on 5 unanimous Buys. That’s alongside an average analyst price target of $50.60, which implies about 27% upside potential over the next 12 months.

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