Shares of the Genfit SA (GNFT) stock soared in the current market today on December 17, 2021. The stock became bullish after a couple of announcements by the company. GNFT stock price saw a surge of 39.92% to reach $4.61 a share at the time of this writing. The trading volume was 9,622,731, far higher than the average trading volume. Let’s understand the reason behind this rise.
License Agreement between GNFT and Ipsen:
The first news of the GNFT stock in today’s date is the announcement of a long-term strategic partnership between Genfit and Ipsen. The partnership represents the global collaboration between the companies. According to the agreement, Ipsen got an exclusive worldwide license for the development, manufacturing, and commercialization of investigational treatment of Genfit, elafibranor. This treatment is for those people who are suffering from Primary Biliary Cholangitis (PBC). Ipsen would also get benefit from the future clinical programs of Genfit along with scientific capabilities proprietary technologies in liver disease. Ipsen will become one of the largest shareholders of the GNFT stock through €28m investment in it.
Second News of GNFT stock:
Genfit SA acquired the exclusive rights from Genoscience Pharma for the development and commercialization of GNS561, a novel clinical-stage autophagy/PPT1 inhibitor. GNS561 is intended to treat cholangiocarcinoma, which is a special type of cancer that occurs in the slender tubes. Genfit will develop and commercialize this treatment in the United States, Canada, and Europe. This announcement came after the company announced its long-term strategic partnership with Ipsen. Genfit is now eligible for clinical and regulatory milestone payments and tiered royalties.
Financial View of GNFT stock:
In the first nine months of 2021, Genfit generated €20 thousand in revenue as compared to €350 thousand in the same period of the previous year. Non-recurring services have mainly contributed to the revenues. A portion of the revenues came from the collaboration agreements with Labcorp and Terns Pharmaceuticals.
The company had €91.5 million in cash and cash equivalents as of September 30, 2021. As of September 30, 2020, Genfit had €199.3 million in cash and cash equivalents. By the end of the first half of 2021, the company had €104.4 million in cash and cash equivalents.
Wrap Up:
The sentiment is positive for GNFT stock after a couple of announcements by the company. From the investment perspective, it is better to do deep research before making any decision.
