Key Highlights

  • Nurix shares were trading down 36.91% at $16.29, against a prior close of $25.82.
  • Sanofi discontinued the Phase 1 trial of the STAT6 degrader SAR448272.
  • The move removes about $455 million in potential milestones plus royalties.
  • Cash of $1.1 billion funds operations into the second half of 2029.
  • Needham called the stock oversold, while Jefferies cut its target to $36.

Sanofi Ends the STAT6 Program on Preclinical Findings

Nurix (NASDAQ:NRIX) shares were trading down 36.91% at $16.29 on Wednesday, on Volume far above average, even as health stocks rallied broadly after the midterms. Sanofi told the company it would stop the Phase 1 first-in-human trial of SAR448272, an oral STAT6 degrader, and end the program. Analysts at Truist and Leerink read the decision as specific to the molecule rather than the target, based on emerging preclinical findings in atopic dermatitis.

Nurix said it no longer expects milestones or royalties on that asset, which removes roughly $455 million in potential payments.

Management Points to Cash and Three Clinical Programs

The company said its cash runway is unchanged, with $1.1 billion at the end of August funding operations into the second half of 2029. Chief Executive Arthur Sands called the news disappointing but said Nurix has three clinical-stage programs and a deep preclinical pipeline.

The lead program, bexobrutideg, a BTK degrader partnered with Roche, is in a Phase 3 trial in chronic lymphocytic leukemia. NX-1607, a CBL-B inhibitor, is in Phase 1b cohorts across several tumor types, and an IRAK4 degrader is in Phase 1 with Gilead.

Analysts Split on Whether the Drop Is Overdone

Needham kept a Buy rating with a $34 target and called the stock oversold. Jefferies cut its target to $36 from $45, and Wells Fargo cut to $20 and stayed on the sidelines. Sanofi also holds Options on another licensed program, and Nurix remains eligible for payments on those if Sanofi advances them.

Valuation and What Comes Next

The 52-week range runs from $11.67 to $28.23, so the shares now sit closer to the low than the high. The key swing factors are the Phase 3 progress for bexobrutideg and any further partner decisions.