Clinical-stage oncology company Oric Pharmaceuticals (NASDAQ:ORIC) has entered into a collaboration for a potential Phase 2 study of its multiple myeloma candidate ORIC-533 with pharma giant Pfizer (NYSE:PFE). Furthermore, the deal involves the purchase of 5,376,344 ORIC shares by Pfizer at $4.65 per share, resulting in proceeds of about $25 million. ORIC stock rallied over 42% in Thursday’s pre-market trading session.
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Oric intends to use the proceeds from Pfizer’s equity investment to fund current and planned clinical trials, and for working capital and general corporate purposes. With the inclusion of Pfizer’s $25 million equity investment, ORIC now expects its cash runway (indicates the time period for which a business can stay afloat without raising additional capital) to extend into the first half of 2025.
The two companies plan to leverage this collaboration to potentially advance ORIC-533 into a Phase 2 combination study with Pfizer’s investigational cancer immunotherapy elranatamab. Pfizer’s elranatamab is an “investigational B-cell maturation antigen (BCMA) CD3-targeted bispecific antibody in development for the treatment of multiple myeloma.” It is notable that Oric will retain complete economic ownership and control of ORIC-533.
Is Oric Pharmaceuticals a Buy?
Oric Pharmaceuticals stock earns the Street’s Moderate Buy consensus rating based on two unanimous Buys. The average ORIC stock price target of $15.50 suggests nearly 417% upside potential. ORIC stock has plunged over 81% year-to-date.
