Eleven Biotherapeutics Inc (NASDAQ:EBIO)’s Stock Price on the Wane after Acquisition


The enthusiastic surge in the shares of Eleven Biotherapeutics Inc (NASDAQ:EBIO) after its September acquisition of Viventia Bio Inc. appears to be wearing off. Eleven’s shares fell sharply by nearly 15% on Monday and closed at $1.76.

No news or announcement came from Eleven Bio that would explain the sudden decline in its share price.

What is of concern, however, is that the price is now well below the 200-day moving average, and there appears to be no letup in selling momentum.

On August 16 Eleven Bio touched a high of $5.97, and is now off 70% from that level.

That high was touched off when the company announced that its exclusive licensing deal with Roche for IL-6 inhibitor EBI-031 had been completed and become effective. Eleven stands to receive up to $262.5 million if certain regulatory, development and commercialization milestones are met as specified in the agreement.

That news also proved to be fodder for the bears in the stock, considering the precipitous decline after that date.

Eleven Biotherapeutics Inc (NASDAQ:EBIO) in the second quarter

During the second quarter, net loss was $6.5 million, or $0.33 per share, for the three months ended June 30, 2016, compared to net loss applicable to common stockholders of $6.9 million, or $0.36 per share, for the same period in 2015.

Cash and cash equivalents were $8.5 million as of June 30, 2016. The company said this amount taken with the milestone payment of $30 million receivable from Roche, would be adequate to fund operations into 2017.

Eleven Biotherapeutics Inc (NASDAQ:EBIO) to get Viventia’s lead product candidates

Vicinium and Proxinium are Viventia’s lead products that will now find a place in Eleven’s product pipeline.

Vicinium is in Phase III trial for treatment of high-grade non-muscle invasive bladder cancer (NMIBC).

Phase II trials of Proxinium, intended for treating late-stage squamous cell carcinoma of the head and neck, are expected to start early next year.

With EBI-031 licensed out for development by Roche, Eleven Bio now has its own sights focused on oncology using targeted protein therapeutics (TPT) therapies.

It is likely that most of the development costs of the oncology pipeline will be funded from the milestones received under the partnership with Roche.


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