Atreca (BCEL) Suspends Lead Drug Evaluation, Stock Falls 37%
Atreca, Inc.’s BCEL shares plunged about 37% on Aug 11, 2023, after the company reported structural changes in its business in the second-quarter earnings release, which failed to meet investors’ expectations. The company stated expenses reduction to extend cash runway as the reason for these structural changes.
As part of its restructuring efforts, Atreca announced suspending the developmental activities of ATRC-101, which was being evaluated for several cancer indications. ATRC-101, a monoclonal antibody being developed as a non-antibody drug conjugate (ADC), was the company’s only pipeline candidate in the clinical development phase.
In the absence of a marketed product, the discontinuation of the only clinical phase candidate is a major setback for the company as all other candidates currently under development are in the pre-clinical phase. BCEL reported looking for partnership opportunities to out-license the development of ATRC-101.
The company further announced reducing its workforce by approximately 40% as part of its cost-cutting efforts, amidst a cash crunch.
Year to date, shares of Atreca have fallen 30.3% compared with the industry’s 12.3% decline.
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BCEL will now be refocusing its resources on advancing current preclinical ADC candidates, including APN-497444, while preserving core discovery capabilities. APN-497444, a novel, tumor-specific glycan, is now the lead ADC candidate of the company, which is under preclinical development for gastrointestinal cancer indications. In addition to APN-497444, the company has two more ADC candidates, APN-987481 and APN-685612, which are also in preclinical study.
Atreca anticipates nominating a clinical candidate from its ADC program in 2023 and is expecting to complete an investigational new drug (IND) application in late 2024 or early 2025.
In the earnings release, BCEL also reported FDA clearance of its IND application for MAM01/ATRC-501, being developed in partnership with Gates Medical Research Institute (Gates MRI). A phase I study on the candidate is expected to be initiated by Gates MRI in the United States to evaluate the candidate in the treatment of malaria prophylaxis for travelers.
Per the terms of the partnership agreement, Atreca retains commercial rights to ATRC-501 in the United States, EU and parts of Asia along with potential product development opportunities in those regions, including prophylaxis for those traveling to malaria-endemic regions.
Atreca reported a loss of 49 cents per share in the second quarter of 2023, which is narrower than the Zacks Consensus Estimate of a loss of 56 cents per share. In the year-ago quarter, the company had incurred a loss of 72 cents per share.
Atreca, Inc. Price, Consensus and EPS Surprise
Atreca, Inc. price-consensus-eps-surprise-chart | Atreca, Inc. Quote
Zacks Rank and Stocks to Consider
Atreca currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall medical sector are J&J JNJ, ADC Therapeutics ADCT and ADMA Biologics, Inc. ADMA, each 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 Zacks Consensus Estimate for J&J’s 2023 earnings per share has increased from $10.67 to $10.75. During the same period, the estimate for JNJ’s 2024 earnings per share has increased from $11.01 to $11.29. Year to date, shares of JNJ have gained 4.7%.
JNJ beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 5.58%.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics’ 2023 loss per share has narrowed from $2.77 to $2.70. During the same period, the estimate for ADC Therapeutics’ 2024 loss per share narrowed from $2.56 to $2.48. Year to date, shares of ADCT have plunged 82.1%.
ADCT beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative earnings surprise of 3.25%.
In the past 90 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 9 cents. The consensus estimate for 2024 earnings is currently pegged at 8 cents per share. Year to date, shares of ADMA have gained 85.9%.
ADMA beat estimates in three of the trailing four quarters, matching estimates on one occasion, delivering an average earnings surprise of 13.57%.
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Atreca, Inc. (BCEL) : Free Stock Analysis Report
