Shares of the VYNE Therapeutics Inc. (VYNE) stock were green in the current market trading session today on January 13, 2022. VYNE stock price saw a push of 1.90% to reach $1.02 a share at the time of this writing. The stock was gloomy in the previous trading session and went down by 3.85% at closing. Let’s deep dive to explore more of it.
What’s Happening?
VYNE stock happened to be green after the company announced that it has sold its Molecule Stabilizing Technology (MST™) franchise, to Journey Medical Corporation. AMZEEQ® topical foam, 4%, and ZILXI® topical foam, 1.5% are included in this sale. The company is focusing to use its resources in the development of its pipeline of proprietary, differentiated medicines for conditions related to immune-inflammatory.
According to the definitive asset purchase agreement, VYNE Therapeutics will receive $20.0 million in an upfront payment from Journey. Moreover, the company will also receive an additional payment of $5.0 million on the first anniversary of closing. The agreement also states that the VYNE is eligible to receive sales milestone payments of up to $450.0 million in the aggregate if it achieves a specified level of net sales. The company is also eligible to get payments in case of licensing or sublicensing of assets by Journey outside of the U.S.
Financial View of VYNE stock
The company on November 10, 2021, did announce third-quarter 2021 financial results according to which
- The company generated $4.1 million in the three months ended September 30, 2021. In the same quarter of the previous year, the company generated $3.3 million in revenue. The revenue comprised $4.0 million of product sales and $0.1 million of royalty.
- The cost of goods sold for the VYNE stock was $1.0 million in the third quarter of 2021 as compared to $0.4 million in the same tenure of the previous year. The increase in the sales volumes is mainly attributable to this rise.
- The gross margin percentage for the recently reported quarter was 73% for the VYNE stock. The gross margin percentage was 87% in the same quarter of last year.
- The company spent $7.0 million in research and development expenses in the third quarter of 2021. The selling, general and administrative expenses of the company were $13.8 million in the last reported quarter.
Wrap Up
Investors are responding positively to the recent news of the VYNE stock, resulting in the rise of stock today. However, in the past six months, this stock has lost approximately 64%.
