Shares of Aclaris Therapeutics ACRS rallied 53.2% on Monday and gained another 8.9% during the after-market hours following the signing of an exclusive license agreement with Biosion for global rights (excluding Greater China) to two of the latter’s pipeline candidates, BSI-045B and BSI-502.

Biosion’s BSI-045B, a novel anti-TSLP monoclonal antibody, is currently in clinical development in the United States for treating moderate-to-severe atopic dermatitis. Results from a completed phase IIa proof-of-concept study by Biosion demonstrated that BSI-045B has a pharmacodynamic, safety and efficacy profile indicative of its potential as a best-in-class therapy.

Several mid-stage studies of the candidate are ongoing in China for severe asthma and chronic rhinosinusitis with nasal polyps, aiming to accelerate potential proof-of-concept demonstrations for additional indications. The other investigational candidate, per the terms of the licensing deal, is BSI-502, a potential best-in-class, novel bispecific antibody that is directed against both TSLP and IL4R, which is currently in the preclinical stage. However, both candidates are yet to be evaluated by regulatory authorities.

Year to date, shares of Aclaris have skyrocketed 199% against the industry’s 6% decline.

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Per management, the licensing deal with Biosion concludes Aclaris’ strategic review process to maximize shareholders’ value. The addition of these two potentially transformative treatments is expected to complement Aclaris’ existing ITK inhibitor portfolio, resulting in a pipeline of differentiated assets that target multiple high-value immunologic and respiratory indications.

Aclaris’ pipeline currently comprises several candidates undergoing clinical development across various stages for skin disease and cancer indications.

Cash Consideration for the Deal Between ACRS and Biosion

Per the terms of the licensing agreement, Aclaris is liable to make a $30 million upfront payment to Biosion for the transfer of global rights to BSI-045B and BSI-502. Biosion is also entitled to receive $4.5 million for certain development costs and $6.2 million for certain development and drug product reimbursement from Aclaris.

Moreover, Aclaris is liable to make additional payments of up to $125 million upon the achievement of specified regulatory milestones and up to $795 million upon the achievement of specified sales milestones. Biosion also remains eligible to receive a tiered low-to-mid single-digit royalty based upon a percentage of annual net sales from Aclaris.

In a separate press release, ACRS announced a private offering for gross proceeds of approximately $80 million, which is expected to close on or about Nov. 19, 2024, subject to the satisfaction of customary closing conditions. The company intends to use the proceeds from this transaction to fund the research and development of its pipeline and for general corporate purposes.

Management believes that this private placement will strengthen Aclaris’ balance sheet and provide enough flexibility to support its strategic growth while maintaining its cash runway into 2028.

Aclaris Therapeutics, Inc. Price and Consensus

Aclaris Therapeutics, Inc. price-consensus-chart | Aclaris Therapeutics, Inc. Quote

ACRS’ Zacks Rank and Stocks to Consider

Aclaris currently carries a Zacks Rank #3 (Hold).

Some better-ranked pharma stocks are Allogene Therapeutics ALLO, Pfizer PFE and Gilead Sciences GILD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past 60 days, Allogene Therapeutics’ estimates for loss per share have narrowed from $1.40 to $1.35 for 2024, and that for 2025 has narrowed from $1.46 to $1.34. ALLO shares have lost 33% year to date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 9.42%.

Over the past 60 days, Pfizer’s earnings estimates have risen from $2.62 to $2.88 per share for 2024, while that for 2025 has increased from $2.85 to $2.92. PFE shares have lost 13.6% year to date.

Pfizer’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 74.50%.

Over the past 60 days, Gilead Sciences’ earnings estimates have risen from $3.79 to $4.28 per share for 2024 while that for 2025 has increased from $7.24 to $7.40. GILD shares have risen 9.2% year to date.

Gilead Sciences’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 15.46%.

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