Why Is Cancer Focused Nurix Therapeutics Stock Trading Higher Today?

Nurix Therapeutics Inc NRIX has entered into a multi-year, multi-target strategic collaboration agreement with Seagen Inc SGEN to advance a new class of medicines called Degrader-Antibody Conjugates (DACs) for use in cancer. 

The collaboration between the two companies will focus on an innovative approach to combine antibody-drug conjugation (ADC) and targeted protein degradation (TPD)—to create drugs with new mechanisms of action and improved specificity and anti-cancer activity.

Under the terms of the agreement, Nurix will receive an upfront payment of $60 million and can receive up to approximately $3.4 billion in research, development, regulatory, and commercial milestone payments across multiple programs. 

In addition, Nurix will be eligible for mid-single to low double-digit tiered royalties on future sales. Nurix retains an option for U.S. profit sharing and co-promotion on two products arising from the collaboration. 

As part of the multi-year collaboration, Nurix will use its proprietary DELigase platform to develop a suite of targeted protein degraders against multiple targets nominated by Seagen that are suitable for antibody conjugation. 

Seagen will be responsible for conjugating these degraders to antibodies to make DACs and advancing these DAC drug candidates through preclinical and clinical development and commercialization. 

With the receipt of the $60 million upfront payment, Nurix expects that its existing cash, cash equivalents and marketable securities, excluding any future potential milestones from collaborations, will be sufficient to fund its operating activities into Q2 of 2025.

Price Action: NRIX shares are up 9.77% at $9.10 on the last check Thursday.