Assembly Biosciences Q3 net loss widens on increased R&D costs

Overview

• US biotech firm's Q3 collaboration revenue dropped sharply from prior year

• Q3 net loss widened as operating expenses rose with clinical trial activity

• Company received $75 mln extension fee from Gilead; cash runway projected into 2029

Outlook

• Company expects to begin Phase 2 study of ABI-6250 in cholestatic liver diseases in Q1 2027

• Gilead expected to start Phase 2 study of GS-1179 for recurrent genital herpes by end-2026

• Company projects cash runway to fund operations into 2029

Result Drivers

• COLLABORATION REVENUE DECLINE - Co said Q3 revenue fell mainly due to an $11.3 mln reduction in the transaction price of its HSV helicase primase inhibitor license, reflecting R&D costs expected to be reimbursed to Gilead

• HIGHER R&D EXPENSES - Co attributed increased R&D costs to the start-up of multiple clinical studies for ABI-6250 and increased research and discovery activities

• INCREASED G&A COSTS - General and administrative expenses rose due to higher stock-based compensation and increased commercial planning and market research

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Assembly Biosciences Inc is $52.00, about 132.5% above its November 11 closing price of $22.37

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)