AC Immune (ACIU) Stock: Why The Price Increased Today

By Amit Chowdhry ● Nov 8, 2021
  • The stock price of AC Immune SA (NASDAQ: ACIU) increased over 9% pre-market today. This is why it happened.

The stock price of AC Immune SA (NASDAQ: ACIU) – a clinical-stage biopharmaceutical company pioneering precision medicine for neurodegenerative diseases – increased over 9% pre-market today. Investors are responding positively to the company reporting its financial results for the quarter ended September 30, 2021.

Here is an analysis of financial statements for the quarter ended September 30, 2021

— The company had a total cash balance of CHF 188.6 million, composed of CHF 93.6 million in cash and cash equivalents and CHF 95.0 million in short-term financial assets. This compares to a total cash balance of CHF 225.9 million as of December 31, 2020. And the company’s cash balance provides enough capital resources to progress through at least Q1 2024 without consideration of potential incoming milestone payments.

— The company did not record contract revenues for the three months ended September 30, 2021, a decrease of CHF 1.1 million from the comparable period in 2020. The overall decrease is predominantly related to CHF 1.1 million of contract revenue associated with R&D activities in our agreement with Lilly that were recognized in 2020 and did not repeat in the current period.

— R&D expenses decreased by CHF 0.4 million for the three months ended September 30, 2021, to CHF 15.1 million.

— The company decreased expenditures across a variety of its discovery and preclinical programs. And this was predominantly led by a decrease in investment for the research of alpha-synuclein antibodies and other discovery programs.

— The company increased expenditures across multiple clinical programs, predominantly for ACI-35-030 driven by R&D cost sharing and increased patient enrollments into the Phase 1b/2a study. This increase was offset as the company incurred less expense for ACI-24 for AD as the prior six-month safety period completed.

— The company’s salary- and benefit-related costs increased primarily due to the internal reallocation of certain employees’ salaries and the annualization of 2020 hires.

— For the 3 months ended September 30, 2021, G&A increased by CHF 0.5 million to CHF 5.4 million. And this increase is predominantly related to transaction costs incurred to complete the asset acquisition for Affiris’ alpha-synuclein portfolio as well as other administrative items.

— The company recognized CHF 0.3 million in grant income for R&D activities performed under our Michael J. Fox Foundation for Parkinson’s Research (MJFF) and Target ALS grants, a decrease of CHF 0.2 million compared to the prior period.

— The company reported a net loss after taxes of CHF 15.9 million for the 3 months ended September 30, 2021, compared with a net loss of CHF 19.0 million for the comparable period in 2020.

KEY QUOTE:

“AC Immune concluded an exceptional third quarter, highlighted by the acquisition of a clinical α-syn vaccine candidate in Parkinson’s disease and topline Phase 2 Lauriet data showing that semorinemab was the first Tau antibody candidate to significantly slow cognitive decline in mild-to-moderate Alzheimer’s disease patients. Our partner Genentech, a member of the Roche Group, will present the topline Lauriet data, later this week at the CTAD 2021 conference, where we will present new clinical data on our p-Tau and Abeta vaccine candidates, ACI-35 and ACI-24, respectively. These achievements show the commitment, progress and breadth of our leadership in discovering and developing impactful therapeutics for neurodegenerative diseases.”

— Prof. Andrea Pfeifer, CEO of AC Immune SA

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.