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      Why Strongbridge Biopharma plc (SBBP) stock faced headwinds in the after-hours on Friday? - Stocks Telegraph

      By Asim Kamal

      Published on

      July 12, 2021

      5:59 AM UTC

      Why Strongbridge Biopharma plc (SBBP) stock faced headwinds in the after-hours on Friday? - Stocks Telegraph

      Strongbridge Biopharma plc (SBBP) shares declined 6.54% in after-hours on Friday, July 9, 2021, closed the week at $2.86 per share. Earlier in the morning session of Friday, SBBP’s stock gained 0.33% to close Friday’s session at $3.06. SBBP shares have fallen 16.39% over the last 12 months, and they have moved up 2.68% in the past week. Over the past three months, the stock has gained 16.35%, while over the past six months, it has lost 9.29%.

      Let’s have a look at its recent news and developments.

      Patent issued for RECORLEV®

      On June 03, 2021, the United States Patent and Trademark Office (USPTO)  issued U.S. Patent No. 11,020,393 entitled, “Methods of Treating Disease with Levoketoconazole” which covers a method of treating Cushing’s syndrome patients with RECORLEV® (levoketoconazole) who also take metformin for Type 2 diabetes. The term of the U.S. patent will expire on March 2, 2040.

      RECORLEV is an adrenal steroidogenesis inhibitor with a New Drug Application by Strongbridge Biopharma plc that is currently under review by the U.S. Food and Drug Administration for the treatment of endogenous Cushing’s syndrome.

      Xeris Pharmaceuticals acquired Strongbridge Biopharma plc

      On May 24, 2021, Xeris Pharmaceuticals, Inc and Strongbridge Biopharma plc (Nasdaq: SBBP entered into a definitive agreement under which Xeris will acquire Strongbridge for stock and contingent value rights (CVRs). The agreement, including the maximum aggregate amount payable under the CVRs, values Strongbridge at approximately $267 million based on the closing price of Xeris Shares of $3.47 on May 21, 2021, and Strongbridge’s fully diluted share capital.

      The businesses of Xeris and Strongbridge will be combined under a new entity to be called Xeris Biopharma Holdings, Inc. 

      Recent financial results announcement

      On May 12, 2021, Strongbridge Biopharma plc released its financial results for the first quarter of 2021, which ended March 31, 2020.

      Q1 2021 financial highlights

      • Strongbridge Biopharma reported net revenue of $8.4 million for Q1 2021, compared to $6.7 million for the three months ended March 31, 2020.
      • The cost of sales was $0.4 million for Q1 2021 compared to $1.0 million in Q1 2020.
      • The total expenses were $18.5 million for Q1 2021 compared to $20.18 million in Q1 2020.
      • The company suffered a basic GAAP net loss of $11.8 million or $0.18 per share in Q1 2021 compared to a basic net loss of $12.7 million, or $0.23 per share in Q1 2020.
      • For Q1 2021 Non-GAAP basic net loss was ($7.2 million or $0.11 per share compared to a non-GAAP basic net loss of $10.3 million, or $0.19 per share, for the same period in 2020.

      Conclusion

      The SBBP is facing some legal actions against its merger with Xeris Pharmaceuticals which may or may not be the reason behind its loss in the after-hours on Friday. we have no other recent news which we could link with its after-hours bashing.

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