ESSA Pharma Inc. (EPIX) stock prices plummeted by 31.46% shortly after market trading commenced on August 16th, 2021. This brought the price per share down to USD$8.17 early on in the trading day.
EPIX Stock’s Collaboration
April 28th 2021 saw EPIX stock announce its clinical collaboration with Bayer. The partnership is aimed at evaluating EPI-7386 in combination with Bayer’s androgen receptor inhibitor darolutamide. The study was conducted in patients with metastatic castration-resistant prostate cancer. As per the agreement, the partnering company may sponsor and conduct a Phase 1/2 EPI-7386 and darolutamide in mCRPC patients. EPIX stock will supply EPI-7386 for the trial, while retaining all rights to the treatment.
EPIX Stock’s EPI-7386
April 10th 2021 saw the company report new preclinical data on EPI-7386 at the 2021 American Association of Cancer Research Annual meeting. The presentation demonstrated that in vitro EPI-7386 can prevent the androgen receptor from binding to genomic DNA. The treatment was also demonstrated to inhibit AR related transcription in prostate cancer cell lines expressing androgen receptor (AR) splice variants, including the AR-v567es variant.
Net Loss Reports
Net loss for the second quarter of fiscal 2021 came in at USD$8.8 million. This represented a net loss of USD$0.21 per common share, on the basis of 31,018,024 weighted average common shares outstanding. This is comparable to the net loss of USD$4.9 million reported in the prior year quarter. This represented a net loss of USD$0.24 per common share, on the basis of 20,824,568 weighted average common shares outstanding. Reports for the 2021 quarter include non-cash share-based payments of USD$2.8 million, as compared for the USD$1.5 million reported in the prior year quarter. These payments were recognized for stock options granted and vesting.
Strong Liquidity Position
EPIX stock reported a strong liquidity position as of June 30th 2021, with cash reserves and short-term investments in the amount of USD$202.26 million. This reflects the generation of gross proceeds in February 2021 in the amount of USD$150 million. The raising of USD$48.9 in financing during July 2020 also contributed to this liquidity position, as did reduced operating expenses in the intervening period.
Future Outlook for EPIX Stock
EPIX stock reported a strong second quarter of fiscal 2021, with the company keen to leverage its cumulative resources resulting from its collaboration with Bayer. The company is taking steps to ensure the continuation of its trajectory of success. Investors are hoping for a recovery in shareholder value, followed by unprecedented and organic growth over the long term.
