ROCKVILLE, Md. - Biotechnology firm REGENXBIO Inc. (NASDAQ:RGNX) on Wednesday announced a leadership transition, with Curran Simpson stepping into the role of President and Chief Executive Officer starting July 1, 2024. Simpson, who has been with the company since 2015 and served as its Chief Operating Officer since January 2023, will succeed co-founder Kenneth T. Mills. Mills, after 15 years at the helm, will assume the position of Chairman of the Board.
The company also confirmed Daniel Tassé as the new Lead Independent Director. The current Chairman, Allan Fox, along with Jerry Karabelas, Ph.D., will continue their tenure on the Board.
Simpson brings over three decades of experience in the biopharmaceutical industry. Before his tenure at REGENXBIO, he held significant roles at GlaxoSmithKline (NYSE:GSK) and served as interim CEO at Human Genome Sciences, leading its integration into GSK (LON:GSK).
In a statement, Simpson expressed his commitment to advancing the company's pipeline and driving the commercialization and scale of the business. Mills reflected on his time as CEO, emphasizing the progress of the company's gene therapy medicines and expressing confidence in Simpson's ability to lead the company forward.
REGENXBIO reiterated its financial guidance, projecting its balance in cash, cash equivalents, and marketable securities to fund operations into 2026. This forecast does not account for potential milestone payments from its collaboration with AbbVie (NYSE:ABBV) or the possible monetization of a priority review voucher.
The company's AAV Therapeutics platform remains a focal point, with several products advancing through late-stage developments. REGENXBIO's collaboration with AbbVie on ABBV-RGX-314 for the treatment of wet AMD (NASDAQ:AMD) and diabetic retinopathy is among the notable projects in its pipeline.
In other recent news, Regenxbio Inc. reported a productive first quarter with total revenue of $15.6 million and a net loss of $63.3 million, a decrease from the estimated $70.7 million loss. The company also saw an increase in its financial position, from $314 million at the end of 2023 to $381 million, which is expected to fund operations into 2026. H.C. Wainwright, an analyst firm, recently reaffirmed a Buy rating on Regenxbio's stock and increased the price target to $38.00 from the previous $36.00.
Regenxbio's CAMPSIITE trial successfully met its primary endpoint, leading to a significant reduction in cerebrospinal fluid levels of D2S6 at 16 weeks with RGX-121 treatment. This treatment is aimed at treating mucopolysaccharidosis type II (MPS II) and its Biologics License Application (BLA) is anticipated to be filed in 2024 under the accelerated approval pathway.
The successful trial outcomes suggest that Regenxbio could receive a Priority Review Voucher upon potential approval of RGX-121, which is currently valued at approximately $100 million in the market.
In addition, Regenxbio is making progress with its gene therapy pipeline, including treatments for Duchenne muscular dystrophy and eye diseases such as wet age-related macular degeneration and diabetic retinopathy. The company's R&D expenses decreased to $55 million, compared to $59 million in the same period last year.
InvestingPro Insights
As REGENXBIO Inc. (NASDAQ:RGNX) embraces a new chapter with Curran Simpson at the helm, the company's financial health and market performance are critical for stakeholders tracking its growth trajectory. InvestingPro data underscores several aspects of the company's current financial position. With a market capitalization of $668.9 million, REGENXBIO's valuation reflects investor sentiment amidst the biotech industry's volatile market conditions. The company's Price to Book (P/B) ratio, as of the last twelve months leading up to Q1 2024, stands at 1.71, suggesting that the market values the company at a slight premium over its book value.
An InvestingPro Tip that resonates with the company's financial guidance is that REGENXBIO holds more cash than debt on its balance sheet, which aligns with its projection to fund operations into 2026. This liquidity position is further reinforced by the fact that the company's liquid assets exceed its short-term obligations, providing financial flexibility as it advances its AAV Therapeutics platform and collaborations.
However, the company is not without its challenges. InvestingPro Tips indicate that analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year. Moreover, REGENXBIO's revenue has seen a decline of 20.9% over the last twelve months as of Q1 2024, which could be a concern for investors looking for growth.
For investors seeking a deeper dive into REGENXBIO's financials and future prospects, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available, which provide a comprehensive analysis of the company's financial health and market potential. Readers can explore these tips by visiting https://www.investing.com/pro/RGNX and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The leadership transition, coupled with a robust product pipeline, positions REGENXBIO to potentially capitalize on the gene therapy sector's opportunities. As the company navigates through its strategic plans, these financial metrics and insights will be pivotal for investors monitoring REGENXBIO's progress under its new leadership.
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