Pyxis Oncology Obtains $8 Million Payment for the Sale of Royalty Rights
Pyxis Oncology, Inc. (PYXS) secures non-dilutive funding through the sale of rights to royalties for Beovu® and another asset to Novartis for $8 million. The company retains rights to three other antibodies in development by Apexigen's licensees. This funding will support the development of their lead Antibody-Drug Conjugate (ADC) asset, PYX-201.
The transaction between Pyxis Oncology and Novartis involving the sale of royalty rights for an $8 million one-time cash payment can have a notable fiscal impact on Pyxis Oncology's liquidity and cash flow position. This influx of non-dilutive capital strengthens the company's balance sheet, which is particularly advantageous for a clinical-stage company. Such companies typically face cash constraints due to high R&D expenses and lack of revenue streams. The deal allows Pyxis to fund its operations, especially the development of its lead ADC asset, PYX-201, without diluting existing shareholders' equity.
Investors might view this as a positive signal, reflecting the management's confidence in retaining significant value within their pipeline, as they have not sold the company or its remaining assets. This strategic move also implies that Pyxis Oncology is prioritizing its resource allocation towards the most promising assets. However, the $8 million figure should be contextualized within the company's overall cash burn rate and compared against the potential future value of the royalties sold to assess the long-term financial prudence of this transaction.
The sale of royalty rights by Pyxis Oncology to Novartis indicates a strategic pivot focusing resources on developing their lead ADC asset, PYX-201. ADCs, or Antibody-Drug Conjugates, are a significant advancement in targeted cancer therapy, combining the specificity of monoclonal antibodies with potent cytotoxic drugs. This approach allows for direct delivery of chemotherapy to cancer cells, potentially reducing systemic toxicity and improving therapeutic efficacy.
Pyxis Oncology's decision to retain rights to three other antibodies suggests a calculated risk in their portfolio management, balancing immediate financial needs with long-term growth prospects. The PYX-201, being a first-in-concept, represents a significant scientific and commercial undertaking. If successful, it can be transformative for cancer patients with limited treatment options, while also providing substantial returns to the company. However, the ADC market is highly competitive and complex, with challenges in clinical development, manufacturing and regulatory approval. Stakeholders should monitor the progress of PYX-201 closely as it will be a critical determinant of Pyxis Oncology's future.
Pyxis Oncology's strategic sale of certain royalty rights to Novartis for $8 million is an insightful move within the biotechnology industry, where funding and capital allocation are critical for sustained R&D and eventual product commercialization. The transaction reflects a trend where biotech companies leverage non-dilutive financing to extend their runway and focus on core assets. It's important to note that the ADC market is experiencing growth, driven by a robust pipeline and increasing FDA approvals. Pyxis's focus on their lead ADC asset aligns with this trend.
From a market perspective, the deal is indicative of Pyxis Oncology's ability to monetize non-core assets and generate capital, which may be viewed favorably by investors and analysts. This could potentially lead to a positive impact on the company's stock valuation in the short term. However, relinquishing future royalty streams can also be seen as trading long-term potential for short-term stability, a decision that must be weighed against the opportunity cost of funding current pipeline assets.
03/27/2024 - 07:30 AM
Non-dilutive funding to support development of first-in-concept lead Antibody-Drug Conjugate (ADC) asset, PYX-201
Pyxis Oncology retains rights to three other antibodies in development by Apexigen’s licensees discovered through the APXiMAB platform
BOSTON, March 27, 2024 (GLOBE NEWSWIRE) -- Pyxis Oncology, Inc. (Nasdaq: PYXS), a clinical stage company focused on developing next generation therapeutics to target difficult-to-treat cancers, announced today that it has completed the sale of its rights to royalties from the commercialization of Beovu® $8 million .
As part of Pyxis Oncology's acquisition of Apexigen, Inc., in August 2023, the Company gained rights to royalties on Beovu and another asset discovered using APXiMAB, Apexigen's proprietary antibody discovery platform.
Under the agreement with Novartis, Pyxis Oncology will receive an $8 million payment from Novartis. Royalties previously received by Apexigen and Pyxis Oncology will be free from any reclaim rights.
Pyxis Oncology will record the $8 million payment in Q1 2024. Pyxis Oncology retains rights to three other antibodies in development by Apexigen's licensees, which were also discovered leveraging the APXiMAB platform. Pyxis Oncology believes that it has the potential to earn future payments associated with those programs.
"We are pleased to obtain this meaningful non-dilutive capital, which will support the continued development of our promising lead ADC asset, PYX-201,” said Lara S. Sullivan, M.D., President and CEO of Pyxis Oncology.
About Pyxis Oncology, Inc. www.pyxisoncology.com or follow us on Twitter and LinkedIn .
Forward-Looking Statements This press release contains forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements are often identified by the use of words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “to be,” “will,” “would,” or the negative or plural of these words, or similar expressions or variations, although not all forward-looking statements contain these words. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur and actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled “Risk Factors” set forth in Part II, Item 1A. of the Company’s Annual Report on Form 10-K filed with SEC on March 21, 2024, and our other filings, each of which is on file with the Securities and Exchange Commission. These risks are not exhaustive. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date hereof and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Pyxis Oncology Contact ir@pyxisoncology.com
What funding did Pyxis Oncology secure through the sale of rights to royalties?
Pyxis Oncology secured non-dilutive funding through the sale of rights to royalties for Beovu® and another asset to Novartis for $8 million.
What asset will the funding support the development of?
The funding will support the development of Pyxis Oncology's lead Antibody-Drug Conjugate (ADC) asset, PYX-201.
What rights does Pyxis Oncology retain after the sale?
Pyxis Oncology retains rights to three other antibodies in development by Apexigen's licensees.
Who is the President and CEO of Pyxis Oncology?
Lara S. Sullivan, M.D. is the President and CEO of Pyxis Oncology.
