Nurix Therapeutics (NRIX) Could Be 55% Undervalued After Sanofi Ends Phase 1 Program

Nurix Therapeutics (NRIX) shares are in focus after Sanofi ended its Phase 1 trial for SAR448272, which cuts off potential milestones and royalties tied to that candidate within their broader collaboration.

The Sanofi setback landed on a stock that has already seen momentum cool, with a 30 day share price return down 34.6% and a 90 day share price return down 42.8%. Even so, Nurix Therapeutics still shows a 1 year total shareholder return of 20.9% and a roughly 2.5x total shareholder return over three years, which points to a longer term story that markets are now reassessing in light of recent news and leadership changes.

Spot under-pressure biotechs like Nurix Therapeutics and compare them with 20 high quality undiscovered gems that the market may not be fully pricing in yet.

The share price reset leaves Nurix Therapeutics trading far below the average analyst target, with a wide gap between recent quotes and published fair value ranges. How much of that spread really reflects the Sanofi hit versus broader execution risk?

Most Popular Narrative: 55% Undervalued

On the analyst consensus Narrative on Simply Wall St, Nurix Therapeutics screens as materially undervalued, with a fair value of $34.50 against the last close of $15.48. This comparison puts recent volatility around NRIX into a different context for investors weighing the risk and reward trade off.

The global bexobrutideg collaboration with Roche, which includes a US$700 million upfront payment, up to US$2.3b in potential milestones, a 50-50 U.S. cost and profit share, and ex U.S. royalties under a 40% Nurix Therapeutics and 60% Roche cost split, sets up a future stream of collaboration revenue and potential profit share that can support earnings beyond current reported results.

See why 3 investors see Nurix Therapeutics as 55% undervalued.

Result: Fair Value of $34.50 (UNDERVALUED)

Still, the narrative around Nurix Therapeutics can break if key clinical trials disappoint or if heavy R&D spending keeps losses wide without steadier collaboration inflows.

Find out about the key risks to this Nurix Therapeutics narrative.

Next Steps

Mixed messages around Nurix Therapeutics can feel confusing, so move quickly and weigh the trade off for yourself using the 3 key rewards and 2 important warning signs.

Looking for more Nurix Therapeutics style ideas?

If Nurix Therapeutics has your attention, do not stop here. The next profitable insight often comes from comparing it with fresh, high quality watchlist candidates.

• Target stronger balance sheets by scanning a list of solid balance sheet and fundamentals (24 results) that can handle tougher conditions without constant refinancing risk.
• Hunt for mispriced quality by reviewing a curated 32 high quality undervalued stocks set where fundamentals and current prices look out of sync.
• Prioritise staying power by checking a 31 resilient stocks with low risk scores group built around resilient financial profiles and lower overall risk scores.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com