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Horizon (HZNP) Inks Collaboration Deal with Q32 Bio for ADX-914

Horizon Therapeutics plc HZNP announced that it has entered into a collaboration and option agreement with Massachusetts-based privately held biotechnology company, Q32 Bio Inc., to develop the latter’s pipeline candidate, ADX-914, for the treatment of autoimmune diseases.

Q32 Bio’s most advanced program, ADX-914, is a fully human anti-IL-7Rα antibody that re-regulates adaptive immune function.

Per the latest agreement, Horizon will be responsible for funding the development of ADX-914 through the completion of two phase II studies, while Q32 Bio will be operationally responsible for conducting all program-related activities. After the completion of the phase II studies, Horizon will have an option to acquire the ADX-914 program.

During this period, Q32 Bio will receive $55 million from Horizon as initial consideration and staged development funding. Q32 Bio is also entitled to receive up to $645 million as milestone payments, as well as tiered royalties on net sales, upon potential approval of the product.

Q32 has already completed a biomarker-enabled phase I study which evaluated the safety of ADX-914 demonstrating a pharmacological effect on T cells in healthy volunteers. The company plans to begin a phase II study evaluating ADX-914 for treating atopic dermatitis later in 2022. It also plans to initiate another phase II study evacuating ADX-914 for a second autoimmune disease indication in 2023.

Shares of Horizon have plunged 39.8% in the year compared with the industry’s decline of 17.9%.


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The above collaboration looks like a good strategic fit for Horizon’s expertise in the autoimmune and inflammatory disease space.

Horizon’s portfolio of marketed drugs has been witnessing a solid uptake. The company reports financial results under two segments, namely Orphan and Inflammation.

Sales in the Orphan segment are being driven by the strong uptake of Krystexxa as well as the continued growth of Uplizna, Ravicti, Actimmune and Tepezza.

Zacks Rank & Stocks to Consider

Horizon currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the biotech sector include Achilles Therapeutics plc ACHL, Atara Biotherapeutics, Inc. ATRA and ORIC Pharmaceuticals, Inc. ORIC, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Achilles Therapeutics’ loss per share estimates narrowed 6% for 2022 and 8.6% for 2023 in the past 60 days.

Earnings of Achilles Therapeutics surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ACHL delivered an earnings surprise of 12.45%, on average.

Atara Biotherapeutics’ loss per share estimates narrowed 26.9% for 2022 and 25.6% for 2023 in the past 60 days.

Earnings of Atara Biotherapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. ATRA delivered an earnings surprise of 4.83%, on average.

ORIC Pharmaceuticals’ loss per share estimates narrowed 0.8% for 2022 and 14.8% for 2023 in the past 60 days.

Earnings of ORIC Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ORIC delivered an earnings surprise of 8.85%, on average.




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Horizon Therapeutics Public Limited Company (HZNP): Free Stock Analysis Report
 
Atara Biotherapeutics, Inc. (ATRA): Free Stock Analysis Report
 
Oric Pharmaceuticals, Inc. (ORIC): Free Stock Analysis Report
 
Achilles Therapeutics PLC Sponsored ADR (ACHL): Free Stock Analysis Report
 
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