The shares of Atea Pharmaceuticals, Inc. (AVIR) stock saw a decline in the after-hours. The stock declined by 11.44% to reach $10.06. The trading volume of the shares in the market was 7.25 Million. In the previous trading session the stock closed at $11.36. The reason of this decline could be linked to the canceling of the partnership by Roche with Atea to develop Covid-19 antiviral pill.
Reasons of Roche Holding AG (ROG) walking away from partnership with Atea Pharmaceuticals, Inc. (AVIR):
On November 16, 2021 Roche Holdings AG announced that they are cancelling the partnership with Atea Pharmaceuticals after they joined last year together to develop an oral pill named AT-527 for which Atea received an upfront cash of $350 million.
But after continuous efforts by Atea the treatment did not show as promising result as it should have in the reduction of viral disease in the all categories of patients with mild or moderate Covid-19 in the month of October.
However the rights of AT-527 will be returned to the company Atea as the joint venture ends in the month of February 2022. The Atea said they will continue their efforts in regards to the dvelopement of the treatment.
Financial highlights of Atea Pharmaceuticals:
The company also announced their financial report of third quarter. Here is the overview of their 3rd quarter financials:
- Collaboration revenue for the 3rd quarter was $38.2 million. All the collaboration revenue came from the Roche agreement which started in October 2020.
- R&D expenses were $43 million. This increased from $13.6 million by $29.4 million for the quarter ended in September 2021.
- Net loss for the 3rd quarter of 2021 was $28.2 million. Last year the loss in the same quarter was $17.6 million. It increased by $10.6 million.
Conclusion:
Atea Pharmaceuticals, Inc. (AVIR)says that the company will continue the development on their own. They have enough financial resources to carry out the process on their own. They say Atea have cash and cash substitutes that are equivalent to $839.7 million as of 30 September 2021. They will forward the development on AT-527 until they reach to some productive conclusion.
