Nurix Therapeutics Reports Fourth Quarter and Fiscal Year 2023 Financial Results and Provides a Corporate Update
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Insights
The Fast Track designation by the FDA for NX-5948 is a pivotal milestone for Nurix Therapeutics, potentially expediting the drug's development timeline and enhancing its marketability. The designation often leads to a higher probability of regulatory success and can positively influence investor sentiment. Moreover, the collaboration with industry giants like Gilead and Pfizer not only validates Nurix's technology but also provides substantial non-dilutive funding, which is reflected in the reported $100 million capital raised in 2023. This strategic funding reduces the financial risk and extends the company's cash runway, allowing for a focus on R&D without the immediate need for dilutive financing.
However, the net loss reported, although reduced from the previous year, still indicates significant cash burn, which is typical for clinical-stage biopharmaceutical companies. Investors should consider the company's cash position of $295.3 million in relation to its burn rate. While the reported increase in revenue and decreased net loss suggest operational efficiency, the long-term financial health will heavily depend on the successful development and commercialization of its drug candidates.
Nurix's focus on targeted protein modulation drugs, particularly BTK degraders like NX-5948 and NX-2127, addresses a significant unmet need in B-cell malignancies. The positive clinical trial results and the Fast Track designation for NX-5948 indicate a promising therapeutic profile, especially for patients with relapsed or refractory chronic lymphocytic leukemia (CLL). The clinical benefit observed in the early trials, along with the ability of NX-2127 to overcome resistance mutations, showcases the potential of these degraders to improve treatment outcomes and expand the therapeutic window beyond current BTK inhibitors.
It is also noteworthy that the scientific publications in reputable journals provide a strong validation of the underlying science, potentially increasing the credibility and visibility of Nurix's drug candidates in the scientific community. This could lead to increased interest from potential partners or acquirers, especially if the drugs continue to demonstrate efficacy in later-stage trials.
The strategic collaborations with pharmaceutical companies like Seagen (now Pfizer), Gilead and Sanofi are indicative of the industry's interest in protein degradation as a therapeutic approach. Nurix's DELigase platform and its pipeline, including NX-1607 and the IRAK4 degrader NX-0479/GS-6791, are expanding the company's reach beyond oncology into inflammatory diseases, which could significantly broaden the market potential. The company's ability to attract $100 million in non-dilutive capital from these partnerships in 2023 is a testament to the platform's versatility and potential for generating multiple revenue streams through milestone payments and royalties on future drug sales.
Furthermore, the company's robust cash position enables it to advance its pipeline aggressively without immediate fundraising concerns. This financial stability, combined with a diversified and promising pipeline, positions Nurix favorably in the competitive landscape of targeted cancer therapies and immunomodulatory drugs.
NX-5948 received Fast Track designation from the FDA
NX-5948 showed positive results in Phase 1 clinical trial establishing a robust foundation for advancement in CLL
Licensed to Gilead a new development candidate, NX-0479/GS-6791, a targeted protein degrader of IRAK-4 for rheumatoid arthritis
Formed strategic collaboration with Seagen (now Pfizer) to advance a portfolio of degrader-antibody conjugates based on our industry-leading DELigase platform
Achieved
Maintained strong financial position with cash and investments of
SAN FRANCISCO, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Nurix Therapeutics, Inc. (Nasdaq: NRIX), a clinical-stage biopharmaceutical company developing targeted protein modulation drugs designed to treat patients with cancer and inflammatory diseases, today reported financial results for the fiscal quarter and fiscal year ended November 30, 2023, and provided a corporate update.
“Building on a very successful 2023, marked by impressive clinical data for both NX-5948 and NX-2127, Nurix has hit the ground running in 2024, with plans to accelerate enrollment in the NX-5948 leukemia and lymphoma program and enable development in inflammatory diseases,” said Arthur T. Sands, M.D., Ph.D., president and chief executive officer of Nurix. “2023 was also a great year for our partnerships, generating significant non-dilutive funding and expanding our pipeline in both oncology and inflammation with our IRAK-4 degrader. We anticipate continued success with our partners Gilead, Sanofi, and Pfizer in the coming year.”
Recent Business Highlights
- Nurix presented clinical data for Bruton’s tyrosine kinase (BTK) degrader NX-5948 at the American Society of Hematology (ASH) Annual Meeting: In December 2023, Nurix reported data from the dose escalation stage of the Phase 1 trial demonstrating dose-dependent pharmacokinetics (PK), resulting in rapid, robust, and sustained BTK degradation in all patients treated. NX-5948 was well-tolerated across all doses. Preliminary efficacy data demonstrated clinical benefit in six of seven patients with chronic lymphocytic leukemia (CLL). Durable responses were seen across indications in non-Hodgkin lymphoma (NHL) patients, with almost half the patients continuing to receive treatment as of the data cut-off date. Dose escalation in the NX-5948 trial continues across all indications and the study is actively enrolling patients in the United States, the United Kingdom, and the Netherlands.
- NX-5948 received U.S. FDA Fast Track designation: In January 2024, the FDA granted Fast Track designation for NX-5948 for the treatment of adult patients with relapsed or refractory CLL or small lymphocytic lymphoma after at least two lines of therapy, including a BTK inhibitor (BTKi) and a B-cell lymphoma 2 (BCL2) inhibitor. The FDA’s Fast Track designation is intended to facilitate and expedite the development and review of drug candidates to treat serious conditions and fulfill an unmet medical need. A therapeutic candidate that receives Fast Track designation may be eligible for more frequent interactions with the FDA to discuss the candidate’s development plan and, if relevant criteria are met, eligibility for Accelerated Approval and Priority Review.
- Nurix presented clinical data for NX-2127, a dual BTK and IKZF1/3 degrader, at the ASH Annual Meeting: In December 2023, Nurix reported data from its Phase 1a dose escalation and Phase 1b dose expansion cohorts in CLL, mantle cell lymphoma (MCL) and diffuse large B-cell lymphoma (DLBCL). NX-2127 exhibited dose-dependent PK, leading to robust and sustained degradation of BTK and biologically relevant degradation of IKZF1 (Ikaros). Treatment with NX-2127 resulted in encouraging rapid and durable responses in the heavily pre-treated patient population including patients with BTK inhibitor resistance mutations. Durable complete responses were reported in two patients with MCL and DLBCL which remained ongoing for over one year. NX-2127 had a manageable safety profile that was consistent with previous reports for BTK-targeted and immunomodulatory therapies.
- High profile publications provide scientific basis for BTK scaffold function and degrader mechanism: In February 2024, Nurix announced the publication of a manuscript in the journal Science titled: “Kinase Impaired BTK Mutations Are Susceptible to Clinical Stage BTK and IKZF1/3 Degrader NX-2127” that elucidates a previously unappreciated oncogenic scaffold function of BTK responsible for clinical resistance to enzymatic inhibitors and shows that NX-2127 can overcome this resistance across a broad range of acquired mutations. A second manuscript was published contemporaneously in The Journal of Medicinal Chemistry entitled “Discovery and Preclinical Pharmacology of NX-2127, an Orally Bioavailable Degrader of Bruton’s Tyrosine Kinase with Immunomodulatory Activity for the Treatment of Patients with B Cell Malignancies,” which details the discovery and optimization of NX-2127.
Upcoming Program Highlights*
- NX-5948: NX-5948 is an investigational, orally bioavailable, small molecule degrader of BTK. NX-5948 is currently being evaluated in a Phase 1a/b clinical trial in adults with relapsed or refractory B-cell malignancies. In 2024, Nurix expects to define doses for Phase 1b cohort expansion in CLL and NHL and accelerate Phase 1 clinical trial enrollment to enable pivotal trials. Nurix plans to present additional clinical data with higher dose levels and longer treatment duration in mid-2024. In addition, Nurix expects to complete ongoing preclinical studies that can enable an investigational new drug (IND) application for NX-5948 in autoimmune indications. Additional information on the clinical trial can be accessed at www.clinicaltrials.gov (NCT05131022).
- NX-2127: NX-2127 is an orally bioavailable degrader of BTK with immunomodulatory activity for the treatment of patients with relapsed or refractory B-cell malignancies. Nurix is conducting a Phase 1a/b clinical trial of NX-2127, which includes three Phase 1b expansion cohorts in patients with DLBCL, MCL and CLL. Screening and enrollment of new study participants have been paused due to a partial clinical hold placed on the study by the FDA. Patients currently enrolled in the clinical study who are deriving clinical benefit may continue to receive treatment in accordance with the ongoing study protocol. In 2024, Nurix expects to resolve the partial clinical hold to enable the introduction of newly manufactured drug product into the ongoing Phase 1 clinical trial. Additional information on the clinical trial can be accessed at www.clinicaltrials.gov (NCT04830137).
- NX-1607: Nurix’s lead drug candidate from its targeted protein elevation portfolio, NX-1607, is an orally bioavailable inhibitor of the E3 ligase Casitas B-lineage lymphoma proto-oncogene B (CBL-B) for immuno-oncology indications including a range of solid tumor types and lymphoma. Nurix is evaluating NX-1607 in an ongoing, Phase 1 trial in monotherapy and in a combination cohort utilizing paclitaxel in adults in a range of oncology indications. In 2024, Nurix expects to present data from the Phase 1a dose-escalation portion of the trial of NX-1607 and to define dose(s) to enable Phase 1b cohort expansion. Additional information on the clinical trial can be accessed at www.clinicaltrials.gov (NCT05107674).
- NX-0479/GS-6791: GS-6791 (previously NX-0479) is a potent, selective, oral IRAK4 degrader. Degradation of IRAK4 by GS-6791 has potential applications in the treatment of rheumatoid arthritis and other inflammatory diseases. Nurix’s partner, Gilead, is responsible for conducting IND-enabling studies and advancing this program to clinical development.
- Selection of new drug candidate: Nurix expects to select a new targeted protein degrader development candidate in 2024.
- Continued pipeline advancement of strategic collaborations with Gilead, Sanofi and Pfizer: Nurix expects to continue to achieve substantial research collaboration milestones throughout the terms of its collaborations with Gilead, Sanofi and Pfizer.
* Expected timing of events throughout this press release is based on calendar year quarters.
Fiscal Fourth Quarter and Full Year 2023 Financial Results
Revenue for the three months and twelve months ended November 30, 2023, was
Research and development expenses for the three months and twelve months ended November 30, 2023, were
General and administrative expenses for the three months and twelve months ended November 30, 2023, were
Net loss for the three months and twelve months ended November 30, 2023, was
Cash, cash equivalents and marketable securities was
About Nurix Therapeutics, Inc.
Nurix Therapeutics is a clinical stage biopharmaceutical company focused on the discovery, development and commercialization of innovative small molecules and antibody therapies based on the modulation of cellular protein levels as a novel treatment approach for cancer, inflammatory conditions, and other challenging diseases. Leveraging extensive expertise in E3 ligases together with proprietary DNA-encoded libraries, Nurix has built DELigase, an integrated discovery platform, to identify and advance novel drug candidates targeting E3 ligases, a broad class of enzymes that can modulate proteins within the cell. Nurix’s drug discovery approach is to either harness or inhibit the natural function of E3 ligases within the ubiquitin-proteasome system to selectively decrease or increase cellular protein levels. Nurix’s wholly owned, clinical stage pipeline includes targeted protein degraders of Bruton’s tyrosine kinase, a B-cell signaling protein, and inhibitors of Casitas B-lineage lymphoma proto-oncogene B, an E3 ligase that regulates activation of multiple immune cell types including T cell and NK cells. Nurix is headquartered in San Francisco, California. For additional information visit http://www.nurixtx.com.
Forward-Looking Statements
This press release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When or if used in this press release, the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “should,” “will,” and similar expressions and their variants, as they relate to Nurix, may identify forward-looking statements. All statements that reflect Nurix’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding: Nurix’s future financial or business performance; Nurix’s future plans, prospects and strategies; Nurix’s plans and expectations with respect to its current and prospective drug candidates, including its plans to accelerate enrollment in the NX-5948 clinical trial and its expectations with respect to the partial clinical hold on the NX-2127 clinical trial; the tolerability, safety profile, therapeutic potential and other advantages of Nurix’s drug candidates, including their potential to address a range of acquired mutations; the planned timing and conduct of Nurix’s clinical trials; the planned timing for the provision of updates and findings from Nurix’s preclinical studies and clinical trials; the potential benefits of and Nurix’s expectations with respect to its strategic collaborations, including the achievement of research milestones; the potential advantages of Nurix’s scientific approach and DELigase™ platform; and the potential benefits of Fast Track designation. Forward-looking statements reflect Nurix’s current beliefs, expectations, and assumptions regarding the future of Nurix’s business, its future plans and strategies, its development plans, its preclinical and clinical results, future conditions and other factors Nurix believes are appropriate in the circumstances. Although Nurix believes the expectations and assumptions reflected in such forward-looking statements are reasonable, Nurix can give no assurance that they will prove to be correct. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause Nurix’s actual activities and results to differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to: (i) whether Nurix will be able to advance its drug candidates, obtain regulatory approval of and ultimately commercialize its drug candidates; (ii) uncertainties related to the timing and results of preclinical studies and clinical trials; (iii) whether Nurix will be able to fund development activities and achieve development goals; (iv) uncertainties related to the timing and receipt of payments from Nurix’s collaboration partners, including milestone payments and royalties on future product sales; (v) the impact of global business, political and macroeconomic conditions, cybersecurity events, instability in the banking system, and global events, including regional conflicts around the world, on Nurix’s business, clinical trials, financial condition, liquidity and results of operations; (vi) whether Nurix will be able to protect intellectual property and (vii) other risks and uncertainties described under the heading “Risk Factors” in Nurix’s Annual Report on Form 10-K for the fiscal year ended November 30, 2023, and other SEC filings. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. The statements in this press release speak only as of the date of this press release, even if subsequently made available by Nurix on its website or otherwise. Nurix disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Contacts:
Investors
Jason Kantor, Ph.D.
Nurix Therapeutics, Inc.
ir@nurixtx.com
Elizabeth Wolffe, Ph.D.
Wheelhouse Life Science Advisors
lwolffe@wheelhouselsa.com
Media
Aljanae Reynolds
Wheelhouse Life Science Advisors
areynolds@wheelhouselsa.com
| Nurix Therapeutics, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) | |||||||||||||||
| Three Months Ended November 30, | Year Ended November 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue: | |||||||||||||||
| Collaboration revenue | $ | 15,159 | $ | 6,783 | $ | 56,987 | $ | 38,627 | |||||||
| License revenue | — | — | 20,000 | — | |||||||||||
| Total revenue | 15,159 | 6,783 | 76,987 | 38,627 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 49,713 | 46,106 | 189,148 | 184,497 | |||||||||||
| General and administrative | 10,780 | 9,367 | 42,902 | 37,997 | |||||||||||
| Total operating expenses | 60,493 | 55,473 | 232,050 | 222,494 | |||||||||||
| Loss from operations | (45,334 | ) | (48,690 | ) | (155,063 | ) | (183,867 | ) | |||||||
| Interest and other income, net | 3,378 | 1,973 | 11,115 | 3,507 | |||||||||||
| Net loss | $ | (41,956 | ) | $ | (46,717 | ) | $ | (143,948 | ) | $ | (180,360 | ) | |||
| Net loss per share, basic and diluted | $ | (0.77 | ) | $ | (0.87 | ) | $ | (2.65 | ) | $ | (3.71 | ) | |||
| Weighted-average number of shares outstanding, basic and diluted | 54,670,342 | 53,944,109 | 54,337,901 | 48,607,990 | |||||||||||
| Nurix Therapeutics, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||||
| November 30, | |||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 54,627 | $ | 64,474 | |||
| Marketable securities, current | 233,281 | 244,667 | |||||
| Prepaid expenses and other current assets | 7,595 | 9,308 | |||||
| Total current assets | 295,503 | 318,449 | |||||
| Marketable securities, non-current | 7,421 | 63,879 | |||||
| Operating lease right-of-use assets | 31,142 | 12,345 | |||||
| Property and equipment, net | 16,808 | 17,163 | |||||
| Restricted cash | 901 | 901 | |||||
| Other assets | 3,823 | 4,022 | |||||
| Total assets | $ | 355,598 | $ | 416,759 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 6,401 | $ | 5,064 | |||
| Accrued expenses and other current liabilities | 24,970 | 22,428 | |||||
| Operating lease liabilities, current | 7,489 | 5,530 | |||||
| Deferred revenue, current | 48,098 | 37,633 | |||||
| Total current liabilities | 86,958 | 70,655 | |||||
| Operating lease liabilities, net of current portion | 23,125 | 6,434 | |||||
| Deferred revenue, net of current portion | 45,022 | 35,974 | |||||
| Total liabilities | 155,105 | 113,063 | |||||
| Stockholders’ equity: | |||||||
| Common stock | 49 | 47 | |||||
| Additional paid-in-capital | 746,299 | 709,220 | |||||
| Accumulated other comprehensive loss | (655 | ) | (4,319 | ) | |||
| Accumulated deficit | (545,200 | ) | (401,252 | ) | |||
| Total stockholders’ equity | 200,493 | 303,696 | |||||
| Total liabilities and stockholders’ equity | $ | 355,598 | $ | 416,759 | |||
FAQ
What is the FDA designation received by Nurix Therapeutics for NX-5948?
What were the positive results shown by NX-5948 in the Phase 1 clinical trial?
Which company licensed a new development candidate, NX-0479/GS-6791, from Nurix for rheumatoid arthritis?
With which company did Nurix form a strategic collaboration to advance a portfolio of degrader-antibody conjugates?
How much non-dilutive capital did Nurix secure from partners in 2023?
What was Nurix's cash and investments position as of November 30, 2023?
