Clinical-stage oncology company Oric Pharmaceuticals (NASDAQ:ORIC) has entered into a collaboration for a potential Phase 2 study of its multiple myeloma candidate ORIC-533 with pharma giant Pfizer (NYSE:PFE). Furthermore, the deal involves the purchase of 5,376,344 ORIC shares by Pfizer at $4.65 per share, resulting in proceeds of about $25 million. ORIC stock rallied over 42% in Thursday’s pre-market trading session.
Oric intends to use the proceeds from Pfizer’s equity investment to fund current and planned clinical trials, and for working capital and general corporate purposes. With the inclusion of Pfizer’s $25 million equity investment, ORIC now expects its cash runway (indicates the time period for which a business can stay afloat without raising additional capital) to extend into the first half of 2025.
The two companies plan to leverage this collaboration to potentially advance ORIC-533 into a Phase 2 combination study with Pfizer’s investigational cancer immunotherapy elranatamab. Pfizer’s elranatamab is an “investigational B-cell maturation antigen (BCMA) CD3-targeted bispecific antibody in development for the treatment of multiple myeloma.” It is notable that Oric will retain complete economic ownership and control of ORIC-533.
Is Oric Pharmaceuticals a Buy?
Oric Pharmaceuticals stock earns the Street’s Moderate Buy consensus rating based on two unanimous Buys. The average ORIC stock price target of $15.50 suggests nearly 417% upside potential. ORIC stock has plunged over 81% year-to-date.
