Oppenheimer cut its price target to $28 from $30 but kept a bullish view, citing FDA discussions and investor confidence in its Bexo program.
Nurix Therapeutics shares fell more than 6% in after-hours trading on Thursday after the biotech firm reported a wider quarterly loss and lower revenue, reflecting higher research spending and changes in collaborations.
In the third fiscal quarter ended Aug. 31, the San Francisco–based company posted a net loss of $86.4 million, or $1.03 a share, versus a loss of $49 million, or $0.67 a share, a year earlier.
Revenue dropped to $7.9 million from $12.6 million, with income from its collaboration with Sanofi down following the expiration of the initial research period for certain targets. The decrease was partly offset by a higher percentage of completion of performance obligations related to its partnership with Pfizer.
Research and development costs increased to $86.1 million from $55.5 million a year ago, mainly due to higher clinical, manufacturing and consulting costs related to increased enrollment in ongoing studies and preparation for late-stage trials.
Nurix said it plans to launch pivotal trials next year for its BTK degrader bexobrutideg in patients with relapsed or refractory chronic lymphocytic leukemia (CLL). The program will include a single-arm study for potential accelerated approval and a randomized Phase 3 trial for full approval.
The company reported $428.8 million in cash and marketable securities at the end of the quarter and said it had enough capital to continue funding its programs and development partnerships with Gilead, Sanofi and Pfizer.
Oppenheimer maintained an ‘Outperform’ rating on Nurix Therapeutics after lowering its price target to $28 from $30 following its results. The brokerage said shares have rebounded as investors become more comfortable with the regulatory strategy for bexobrutideg, particularly its prospects for accelerated approval.
Oppenheimer noted that Nurix has been having ongoing discussions with the FDA under the drug’s Fast Track designation, and while management has continued to say publicly that accelerated approval will be a review issue, changes in the company’s latest corporate presentation suggest the FDA is on board with the plan, the firm added.
One user noted that research and development spending had “gone way up,” suggesting it could shorten the company’s cash runway, but added there was still time to buy before shares begin to move higher ahead of pivotal bexobrutideg data.
Another user said they had increased their position in Nurix, adding that they plan to keep buying as long as the stock remains below $10, and argued that bexobrutideg alone justifies the company’s roughly $685 million market capitalization.
Nurix’s stock has declined 42% so far in 2025.
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