Shares of Erytech Pharma ERYP fell 19.6% on Aug 25 after management announced that it would no longer pursue the development of Graspa (asparaginase), its most advanced pipeline candidate, in hypersensitive acute lymphoblastic leukemia (ALL).
This decision by ERYP’s management is based on recently received feedback from the FDA last month. After carefully evaluating the feedback, management decided to halt its plans to pursue the development of Graspa in ALL. This decision was made after taking into account the dynamics in the competitive landscape for treating hypersensitive ALL and additional data requested by FDA, which if taken into consideration, will require Erytech Pharma to incur significant cash resources. Based on these points, management decided to focus on preclinical candidates and seek strategic partnerships to expand its pipeline development.
Since last year, the company has been engaged in discussions with the regulatory authority seeking to file a biologic license application (BLA) for Graspa in hypersensitive ALL. At the time, the FDA advised the company to submit additional data alongside the BLA application as well as an agreement on an Initial Pediatric Study Plan (iPSP).
Shares of Erytech Pharma have plunged 57.6% in the year so far compared with the industry’s 21.4% fall.
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Apart from ALL, Erytech is also evaluating Graspa in separate clinical studies for metastatic triple-negative breast cancer (TNBC) and pancreatic cancer indications.
Alongside the decision to stop developing Graspa for Erytech also announced that it will also pursue strategic partnership options by utilizing ERYCAPS, its proprietary technology platform. The company is currently in the process of reviewing these options and will provide updates on the same in fourth-quarter 2022.
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Zacks Rank & Stocks to Consider
Erytech Pharma currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector include Assertio ASRT, Morphic MORF and Sesen Bio SESN. While Morphic and Sesen Bio sport a Zacks Rank #1 (Strong Buy) at present, Assertio carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Sesen Bio’s 2023 bottom line have narrowed from 27 cents to 1 cent in the past 30 days. Share prices of Sesen Bio have fallen 19.4% in the year-to-date period.
Earnings of Sesen Bio beat estimates in each of the last four quarters, the average surprise being 89.49%. In the last reported quarter, Sesen Bio delivered an earnings surprise of 61.54%.
In the past 30 days, estimates for Morphic’s 2022 loss per share have narrowed from $3.38 to $1.75. Loss estimates for 2023 have narrowed from $3.91 to $3.77 during the same period. Shares of Morphic have lost 33.9% in the year-to-date period.
Earnings of Morphic beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 48.29%, on average. In the last reported quarter, MORF delivered an earnings surprise of 183.95%.
In the past 30 days, estimates for Assertio’s 2022 earnings per share have risen from 40 cents to 47 cents. Shares of Assertio have risen 32.6% in the year-to-date period.
Earnings of Assertio beat estimates in three of the last four quarters and missed the mark just once, witnessing a surprise of 126.39%, on average. In the last reported quarter, ASRT delivered an earnings surprise of 100.00%.
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