Regenxbio Has Risen 121.35% Year-to-Date

Regenxbio’s growth trends

Regenxbio (RGNX) has risen 121.35% YTD (year-to-date). Wall Street analysts expect it to report revenues of $194.55 million in 2018, which is a YoY (year-over-year) rise of 1,772.47%. Regenxbio expects license revenues in the second half of 2018 to be much lower than the first half of 2018 due to the non-recurring nature of those revenues.

In Q2 2018, the company reported revenues of $40 million, which is a YoY rise of 506.1%.

On January 8, Regenxbio entered into an agreement with AveXis, which amended the worldwide licensing agreement the companies entered into in March 2014 related to the development and commercialization of SMA (spinal muscular atrophy) drugs. According to the amendment, the company has received $100 million of accelerated payments from Novartis after the latter completed the acquisition of AveXis.

Regenxbio has received a total consideration of $180 million based on this amended agreement. Regenxbio is also eligible to receive commercial milestone payments of $80 million and milestone payments and royalties on sales of SMA drugs developed by Novartis using Adeno-associated virus (or AAV) vector technology.

Regenxbio Has Risen 121.35% Year-to-Date

Analyst recommendations for Regenxbio

The consensus recommendation for Regenxbio over the next 12 months is a “buy.” Of the six analysts covering Regenxbio in September, four have recommended a “buy,” and two have recommended a “hold.”

Wall Street analysts have projected a 12-month consensus target price for Regenxbio of $87.58, which would be a rise of 18.99% over its closing price on September 13.

Cash projections

At end of June, Regenxbio had $306.3 million of cash on its balance sheet, which was significantly higher than $176.4 million at the end of December 2017. It has projected cash, marketable securities, and cash equivalents on its balance sheet of $250 million–$260 million at the end of December 2018. However, the company has projected cash burn in 2018 of $90 million–$100 million, which is higher than the previous estimate of $85 million–$95 million.

In the next part, we’ll look at the growth trends for Crispr Therapeutics.