Genfit S.A. (GNFT) stock gained a further 7.86% in the after-hours, while it gained a humungous 54.24% in regular trading. On December 17, the company announced a long-term global partnership along with the acquisition of rights to the novel asset. Following the announcements, GNFT stock rallied big during regular trading and continued to gain in the after-hours as well.
GNFT closed the regular session at $5.09, with a gain of $1.77 at 37.91 million shares. In the after-hours, the stock added a further $0.40 at 399.19K shares.
What is Going on?
On Friday, the company gave two good news to the people, particularly investors. Firstly, GNFT entered into a long-term global partnership with Ipsen. Secondly, GNFT also acquired exclusive rights to GNS561 from Genoscience Pharma. Hence, this news led the stock to rally big on Friday.
The stock reached a high of $5.75 on December 17, after almost 10 months. Moreover, the current rally in the stock has made its five-day gains reach over 66.8%. While the stock gained big in regular trading, it traded on a much calmer note after hours. Hence, there is a definite chance that it will fall under corrections soon.
Currently, the company has a market capitalization of $217.45 million for its 45.83 million outstanding shares.
GNFT and Ipsen
According to the agreement between both companies, Ipsen will have an exclusive license for the development and commercialization elafibranor, worldwide. Moreover, Ipsen will also have access to the company’s future clinical programs. In order to underscore the commitment, through an investment of 28M euros, Ipsen will buy newly issues GNFT equity (representing 8% after issuance). Hence, Ipsen will become one of the largest shareholders of the company.
Elafibranor is GNFT’s investigational treatment for Primary Biliary Cholangitis (PBC) patients. Currently, the treatment is under evaluation for safety and efficacy in Phase III global trial. Previously, the FDA granted Breakthrough Therapy Designation to the elafibranor. Moreover, it was also granted Orphan Drug Designation by the U.S. FDA and European Medicines Agency.
Rights to GNS561
On Friday, GNFT also announced the acquisition of exclusive rights to GNS561 from Genoscience Pharma. According to the secured rights, GNFT will develop and commercialize the investigational treatment in the U.S., Canada, and Europe. Moreover, GNFT will take a 3-million-euro equity stake in Genoscience. Further, Genoscience will receive regulatory milestone payments and tiered royalties.
GNS561 is a clinical-stage autophagy/PPT1 inhibitor for the orphan disease cholangiocarcinoma.
