Bicycle Therapeutics BCYC announced that it entered into a strategic collaboration agreement with Swiss pharma bigwig, Novartis NVS to develop, manufacture and commercialize its proprietary Bicycle radio conjugates (BRCs) to treat several predetermined oncology indications. Bicycle’s stock was up 11% on Tuesday in response to the news, followed by about a 5% increase during the after-market hours.
In the past year, shares of Bicycle Therapeutics plunged 47.4% compared with the Industry’s 16% decline.
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Per the terms of the agreement, Bicycle is tasked with using its proprietary phage platform to discover Bicycles that hold the potential to be converted into BRCs. Novartis, on the other hand, will be responsible for further development, manufacture and commercialization of the BRCs. Novartis is liable to fund all pre-clinical and clinical development and commercialization activities of Bicycle Therapeutics.
Bicycle is set to receive an upfront payment of $50 million from Novartis under the collaboration agreement. Bicycle is also eligible to receive development and commercial-based milestone payments totaling up to $1.7 billion. The agreement also entitles Bicycle to receive tiered royalties on Bicycle-based medicines commercialized by Novartis.
Bicycles are the company’s novel class of medicines that are being developed for diseases that are underserved by existing therapies. These bicycles are characterized by target binding with high affinity and selectivity, making them attractive candidates for conjugate drug development.
The collaboration with Novartis provides the company with an influx of cash.
Management believes that the collaboration agreement signed with Novartis stands as a proof of Bicycle’s groundbreaking clinical work in the toxin conjugate field and it provides new and additional validation for this unique technology.
Bicycle looks forward to working together with Novartis to pioneer the discovery and development of potential new cutting-edge radiopharmaceutical cancer treatments based on Bicycles.
Bicycle Therapeutics PLC Sponsored ADR Price and Consensus
Bicycle Therapeutics PLC Sponsored ADR price-consensus-chart | Bicycle Therapeutics PLC Sponsored ADR Quote
Zacks Rank and Stocks to Consider
Bicycle currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are Aptinyx APTX and Annovis Bio ANVS, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the consensus estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 56 cents. In the year so far, the shares of Aptinyx have fallen by 94.5%.
APTX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 9.53%.
In the past 90 days, the consensus estimate for Annovis’ 2023 loss per share has narrowed from $2.94 to $2.93. In the year so far, shares of Annovis have increased by 43.6%.
ANVS’ reported loss per share was narrower than the estimated loss per share in the last reported quarter, delivering an earnings surprise of 20.51%.
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