Eliem (ELYM) to Explore Strategic Options, Stock Rises 6%
Eliem Therapeutics ELYM announced that it has completed a review of its business encompassing the status of its programs, resources and capabilities as part of its reorganization efforts. To this extent, the company has decided to halt its Kv7 development program in treating pain, epilepsy and depression.
Per Eliem, the potential strategic alternatives may include, but are not limited to, an acquisition, merger, business combination or other transaction under its evaluation process. In the event of Eliem pursuing a transaction, the company refrained from giving its shareholders any assurance that such a transaction will be completed on attractive terms.
ELYM has not provided any anticipated date of completion of its evaluation process. Additionally, the company is reluctant to disclose further developments unless and until it is determined that further disclosure is appropriate or necessary.
The stock of the company gained about 6% on Thursday, in response to the news. Year to date, shares of Eliem have lost 18.8% compared with the industry’s 1% decline.
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We would like to remind the investors that in February 2023, the company announced pausing further development of ETX-155, a novel GABAA receptor, positive allosteric modulator neuroactive steroid. This pausing of the ETX-155 program was intended to re-prioritize Eliem’s pipeline to focus on its high-potential preclinical Kv7 program, which has now been halted as well.
Eliem has completed phase I studies on ETX-155 in the treatment of major depressive disorder (MDD), with the potential to also pursue development in epilepsy. ETX-155 is currently phase II ready for MDD. During the early-stage study, it was observed that the 60 mg dose strength of ETX-155 demonstrated an encouraging pharmacokinetic, safety and tolerability profile. However, the board of the company decided to discontinue further investment in the MDD program stating that the current market conditions are not in favor of the company or its stockholders at the time.
ELYM had also announced cutting its workforce by around 55% in the first half of 2023, as part of the reorganization process.
Eliem Therapeutics, Inc. Price and Consensus
Eliem Therapeutics, Inc. price-consensus-chart | Eliem Therapeutics, Inc. Quote
Zacks Rank and Stocks to Consider
Eliem currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same industry are EQRx EQRX, FibroGen FGEN and AlloVir ALVR, 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 EQRx’s 2023 loss per share has narrowed from 58 cents to 56 cents. During the same period, the estimate for EQRx’s 2024 loss per share has remained unchanged at 65 cents. Year to date, shares of the company have lost 21.2%.
EQRX beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average earnings surprise of 16.58%.
In the past 90 days, the Zacks Consensus Estimate for FibroGen’s 2023 loss per share has narrowed from $2.75 to $2.59. During the same period, the estimate for FibroGen’s 2024 loss per share has narrowed from $2.16 to $1.82. Year to date, shares of the company have plunged 86.1%.
FGEN beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average earnings surprise of 4.67%.
In the past 90 days, the Zacks Consensus Estimate for AlloVir’s 2023 loss per share has narrowed from $1.90 to $1.80. During the same period, the estimate for ALVR’s 2024 loss per share has narrowed from $1.98 to $1.89. Year to date, shares of the company have declined 35.5%.
ALVR beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 9.78%.
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