Atea Pharmaceuticals Inc. (AVIR) falls a further 11.44% aftermarket to reach $10.06 at a volume of 453.11K, while it closed at $11.36 on November 16. During market hours, the stock lost 1.22% at an active trading volume of 1.67 million. AVIR traded as high as $94.17 and as low as $10.28 in the previous 52 weeks. The current fall broke the stock’s 52-week low as it went below $10.28 in the after hours. AVIR has lost 65.94% year to date while gaining only a small 4.03% over the last five days. The continued downfall in the stock on November 16 can be attributed to Atea’s negative update on its partnership with Roche.
Atea Pharmaceuticals Inc. (AVIR) is a clinical-stage biopharmaceutical company. It is focused on discovering, developing, and commercializing therapies for patients with life-threatening viral diseases.
AVIR’s Update on Roche Partnership
On November 16, AVIR provided an update on its collaboration with Roche. According to the update, the strategic collaboration under which both the companies were jointly developing AT-527 for the treatment of Covid-19 will be terminated. Hence, upon termination in February, the rights and licenses will return to Atea.
AT-527 is an oral antiviral understudy for its potential to protect against the progression of Covid-19 into long Covid.
While Atea still believes in the potential of the drug, Roche ended the partnership as, according to them, the drug failed to help patients. In October, the companies said that the drug did not show clear effects on the SARS-CoV-2 virus in patients with mild-to-moderate Covid-19.
Furthermore, AVIR commented that they have the financial and talent resources to independently drive the drug to its next stage. The company is still committed to the development and commercialization of AR-527 for the treatment needs of patients with Covid-19.
Q3 Finances
On November 12, Atea Pharmaceuticals Inc. (AVIR) reported its third-quarter 2021 financial results. As per the quarter ended September 30, 2021, Atea had a collaboration revenue of $32.8 million against $0 million in Q3 of 2020. The collaboration revenue came from the Roche License Agreement.
Moreover, the net loss for Q3 2021 was $28.2 million, showing an increase of $10.6 million from the net loss of $17.6 million in Q3 2020. Accordingly, the net loss per basic and diluted share was $0.34, while the same for Q3 202 was $1.74.
