Rallybio (RLYB) stock rallied on Tuesday after the clinical-stage biotechnology company reached an agreement with Recursion Pharmaceuticals (RXRX). This saw Recursion Pharmaceuticals agree to acquire full interest in the two companies’ joint ENPP1 inhibitor program, REV102, as well as a connected backup molecule.
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REV102 is a program designed to treat hypophosphatasia (HPP). This is a rare and debilitating genetic disorder that causes metabolic bone disease due to mutations in the ALPL gene. The issue results in a lack of alkaline phosphatase enzyme, which is needed for proper bone and tooth mineralization.
Recursion Pharmaceuticals has agreed to an upfront payment of $7.5 million in equity to Rallybio, a contingent equity payment of $12.5 million when preclinical studies start, and a $5 million milestone payment when a Phase 1 trial begins. Rallybio will also receive low single-digit royalties on all future net sales by Recursion and potential payments if Recursion Pharmaceuticals sells REV102.
Rallybio Stock Movement Today
Rallybio stock was up 26.65% during pre-market trading on Tuesday, following a 2.31% rally yesterday. Even so, the shares have fallen 65.54% year-to-date and 73.61% over the past 12 months. Today’s rally came with heavy trading, as some 34 million shares changed hands, compared to a three-month daily average of roughly 241,000 units.
Is Rallybio Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Rallybio is Hold, based on three Hold ratings over the past three months. With that comes an average RLYB stock price target of $7, representing a potential 1,956.4% upside for the shares.
