Cancer Focused Micro-Cap Xilio Therapeutics Stock Doubles In One Session - Here's Why
Portfolio Pulse from Vandana Singh
Xilio Therapeutics Inc (XLO) stock doubled after announcing an exclusive license agreement with Gilead Sciences Inc (GILD) for the development and commercialization of Xilio's Phase 1 tumor-activated IL-12 program, XTX301. Xilio will receive $43.5 million in upfront payments and is eligible for up to $604.0 million in additional payments, plus royalties. Gilead's 2024 EPS is expected to decrease by $0.03-$0.04 due to this transaction. Xilio also raised $11.3 million through a private placement.
March 28, 2024 | 4:39 pm
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NEGATIVE IMPACT
Gilead Sciences enters into a licensing agreement with Xilio Therapeutics for XTX301, expecting a slight decrease in its 2024 EPS by $0.03-$0.04.
The expected decrease in Gilead's EPS for 2024 due to the transaction costs associated with the licensing agreement may concern investors, potentially putting short-term pressure on the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Xilio Therapeutics' stock doubled following the announcement of a significant licensing agreement with Gilead Sciences for its Phase 1 cancer treatment, XTX301, and a $11.3 million capital raise.
The substantial upfront payment and potential for future earnings from the deal with Gilead, coupled with a successful capital raise, significantly boosts Xilio's financial position and investor confidence, driving the stock price up.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100