News of C4X Discovery Holdings PLC (AIM:C4XD)’s latest payment from AstraZeneca PLC (LSE:AZN) solidifies and validates the company’s place as a skilled drug developer, analysts have said.
Following the firm’s update that US$11 million had been received under a deal worth up to US$400 million with AstraZeneca for the NRF2 activator programme, Shore Capital analysts backed aim-listed C4X.
“We see this as an important value inflection which should reinvigorate sentiment in the share,” the bank said in a note.
“Moreover, this serves as a timely reminder that C4XD has licensing deals in place with some of the leading developers for its programmes.”
The deal included an initial upfront payment of US$2 million to C4X and consisted of a series of developmental and commercial milestones.
Under this, C4X’s NRF2 activator programme has been out-licensed to AstraZeneca with the goal of creating an oral therapy for inflammatory and respiratory diseases.
ShoreCap added that its model for C4X suggests fair value of 52p per share, marking a prospective 480% increase on Tuesday’s closing price of 8.7p.
“These agreements serve as strong validation of C4XD’s prowess in drug discovery and demonstrate its ability to distil value from assets early in the development process,” the bank said.
Indeed, the market reacted positively to the news, with shares in C4X climbing 37% to 11.98p following the news on Wednesday morning.