Core Viewpoint - AC Immune (ACIU) has experienced significant selling pressure, resulting in a 9.7% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - ACIU's current RSI reading of 22.69 suggests that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium [5] Group 2: Fundamental Analysis - There has been a consensus among sell-side analysts to raise earnings estimates for ACIU, with a 16.7% increase in the consensus EPS estimate over the last 30 days [6] - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [6] Group 3: Analyst Ratings - ACIU holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [7]

Financial Performance - Total revenue for the three months ended September 30, 2024, was CHF 25,485, compared to CHF 26,172 for the nine months ended September 30, 2023[2] - Operating income for the three months ended September 30, 2024, was CHF 7,269, a significant improvement from a loss of CHF 15,466 in the same period last year[2] - The company reported a net income of CHF 5,503 for the three months ended September 30, 2024, compared to a net loss of CHF 15,143 in the prior year[3] - Basic earnings per share for the three months ended September 30, 2024, was CHF 0.06, compared to a loss of CHF 0.18 in the same period last year[2] - The company reported a total comprehensive income of CHF 5,514 for the three months ended September 30, 2024, compared to a loss of CHF 15,132 in the prior year[3] - The company reported a loss for the period of CHF 35.1 million for the three months ended September 30, 2024, an improvement from a loss of CHF 49.5 million in the same period last year[5] - The company reported a net loss attributable to equity holders of CHF 35.1 million for the nine months ended September 30, 2024, compared to a loss of CHF 49.5 million in the same period of 2023[40] Revenue Sources - For the three months ended September 30, 2024, AC Immune generated CHF 25.5 million in contract revenues, compared to no contract revenue in the prior comparable period[21] - For the nine months ended September 30, 2024, total contract revenues reached CHF 26.2 million, with significant contributions from Janssen (CHF 24.6 million) and Takeda (CHF 1.6 million)[22] - The company recorded contract revenue of CHF 0.9 million and CHF 1.6 million for the three and nine months ended September 30, 2024, respectively[32] - The company recognized a milestone payment of CHF 24.6 million under its agreement with Janssen, triggered by the Phase 2b ReTain trial[36] - As of September 30, 2024, the company reported CHF 90.7 million in deferred contract revenue related to unsatisfied performance obligations under the agreement with Takeda[32] Expenses and Liabilities - Research and development expenses increased to CHF 14,482 for the three months ended September 30, 2024, from CHF 12,407 in the same period last year[2] - Total liabilities increased to CHF 114,083 as of September 30, 2024, compared to CHF 22,171 as of December 31, 2023[1] - The company has accrued expenses totaling CHF 12.9 million as of September 30, 2024, an increase from CHF 11.1 million as of December 31, 2023[48] Cash Flow and Assets - The company reported a net cash flow from operating activities of CHF 59.9 million for the three months ended September 30, 2024, a significant improvement from a cash outflow of CHF 44.2 million in the same period last year[5] - The company has a strong cash position with CHF 32.4 million in cash and short-term financial assets of CHF 125.5 million as of September 30, 2024, supporting its operations for at least the next 12 months[18] - The company’s cash and cash equivalents decreased to CHF 32,417 as of September 30, 2024, from CHF 78,494 as of December 31, 2023[1] - Cash and cash equivalents at September 30, 2024, were CHF 32.4 million, down from CHF 31.9 million at the end of the previous year[5] - Short-term financial assets increased significantly to CHF 125.5 million as of September 30, 2024, compared to CHF 24.6 million as of December 31, 2023[52] - The net investments associated with short-term financial assets for the nine months ended September 30, 2024, amounted to CHF 100.9 million, up from CHF 43.0 million in the prior comparable period[52] Shareholder Information - Shareholders' equity decreased to CHF 130,165 as of September 30, 2024, from CHF 160,643 as of December 31, 2023[1] - The company has 3,109,214 share options issued and outstanding as of September 30, 2024[42] - As of September 30, 2024, the company had 10,899,773 treasury shares remaining, an increase from 5,243,958 as of December 31, 2023[58] - In Q2 2024, AC Immune issued 5,700,000 registered shares, which were subsequently repurchased to be held as treasury shares[55] Strategic Focus - The company is focused on developing novel medicines and diagnostics for neurodegenerative diseases, leveraging proprietary technology platforms[7] - AC Immune's strategy includes targeting Alzheimer's disease and other neurodegenerative diseases, with a focus on diagnostics and collaborations with pharmaceutical partners[7] - The company allocated USD 87.4 million to the license option and USD 12.6 million to development, CMC, and regulatory activities from the initial transaction price of USD 100 million[30] Other Financial Metrics - The total cash outflow for leases for the nine months ended September 30, 2024, was CHF 1.15 million, compared to CHF 1.075 million in 2023[46] - The IPR&D asset, valued at CHF 50.4 million, was determined not to be impaired as of December 31, 2023, and no triggering events for impairment were identified as of September 30, 2024[50] - Prepaid expenses included CHF 3.4 million in prepaid R&D costs and CHF 6.4 million in administrative costs as of September 30, 2024[51] - The balance of accounts receivable included a CHF 24.6 million milestone payment due under the Janssen Agreement, received in October 2024[54] - For the three months ended September 30, 2024, the net finance result was a loss of CHF 1.8 million, compared to a gain of CHF 0.3 million in the same period of 2023[59] - The company has recognized less than CHF 0.1 million in grant income for the three months ended September 30, 2024, compared to CHF 0.3 million in 2023[39] Agreements and Collaborations - AC Immune entered into a worldwide option and license agreement with Takeda Pharmaceuticals, receiving an upfront payment of CHF 92.3 million and potential milestones of up to approximately CHF 1.8 billion[25]

Company Performance - AC Immune reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of $0.42, and compared to a loss of $0.22 per share a year ago, indicating a significant earnings surprise of -159.52% [1] - The company generated revenues of $0.76 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 99.17%, and this is an increase from zero revenues a year ago [1] - Over the last four quarters, AC Immune has only surpassed consensus EPS estimates once [1] Stock Performance - AC Immune shares have declined approximately 30.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.22 on $1 million in revenues, and for the current fiscal year, it is -$0.20 on $99.11 million in revenues [4] - The estimate revisions trend for AC Immune is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Industry Context - The Medical - Biomedical and Genetics industry, to which AC Immune belongs, is currently in the top 37% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [5] - Another company in the same industry, Agenus, is expected to report a quarterly loss of $1.33 per share, reflecting a year-over-year change of +66.8%, with revenues anticipated to be $64.73 million, up 155.8% from the year-ago quarter [5][6]

Core Insights - AC Immune has reported strong financial results for Q2 2024, highlighting a partnership with Takeda for ACI-24.060, which includes an upfront payment of $100 million and potential milestones totaling approximately $2.1 billion [1][3][6] - The company is advancing its clinical trials, with the ABATE Phase 2 trial for ACI-24.060 in Alzheimer's disease on track and the VacSYn Phase 2 trial for ACI-7104.056 in Parkinson's disease expected to provide interim data in H2 2024 [1][5][6] - AC Immune's cash position is robust, with a balance of CHF 175.2 million, providing sufficient runway for three years of operations [1][6] Financial Highlights - The company recorded CHF 0.7 million in contract revenues for Q2 2024, a significant increase from nil in the prior period, primarily due to the agreement with Takeda [6][13] - Research and development expenses rose to CHF 17.1 million in Q2 2024 from CHF 13.7 million in the same period of 2023, driven by increased clinical activities [6][14] - The net loss for the period was CHF 22.8 million, compared to a net loss of CHF 16.8 million in Q2 2023, reflecting higher operating expenses [6][15] Clinical Development Updates - Enrollment in the ACI-24.060 ABATE Phase 2 trial for Alzheimer's disease is progressing as planned [2][3] - The company has completed regulatory toxicology studies for its anti-TDP-43 monoclonal antibody candidate, enabling the IND filing [3] - ACI-19764, a potent NLRP3 inhibitor, has shown promising preclinical results and is expected to file an IND soon [3][4] Strategic Partnerships and Innovations - The partnership with Takeda is expected to enhance AC Immune's capabilities in developing best-in-class immunotherapies targeting Abeta [2][3] - The morADC platform, combining SupraAntigen® and Morphomer® technologies, is showing promise in preclinical models for neurodegenerative diseases [2][3] - The company is also developing a first-in-class TDP-43 PET tracer, [18F]ACI-19626, for monitoring TDP-43 aggregates [4]

Core Viewpoint - AC Immune SA has introduced a novel class of drug candidates called morADC (Morphomer® Antibody Drug Conjugate) aimed at improving efficacy in treating neurodegenerative diseases, as presented at the AAIC 2024 conference [1][2][3] Group 1: Technology Overview - morADC technology combines proprietary brain-penetrant small molecules (Morphomers®) with monoclonal antibodies (SupraAntigen®), targeting toxic proteins in the central nervous system (CNS) [1][2] - The morADC platform allows for single or dual-targeting strategies, enhancing therapeutic efficacy by delivering combination therapy in a single agent [2][5] - Significant synergies were observed with morADC, leading to increased blood-brain barrier penetration and enhanced potency against protein aggregation compared to using antibodies or small molecules alone [1][2][5] Group 2: Clinical Implications - The morADC technology is designed to address critical targets such as Abeta, Tau, and a-synuclein, which are associated with neurodegenerative diseases [2] - Single-targeting morADC demonstrated significant anti-aggregation effects, while dual-targeting morADC showed even greater efficacy [2][5] - The technology aims to overcome challenges faced by existing treatment modalities, potentially improving clinical outcomes for patients suffering from neurodegenerative diseases [5] Group 3: Company Background - AC Immune SA is a clinical-stage biopharmaceutical company focused on precision medicine for neurodegenerative diseases, with a diverse pipeline that includes sixteen therapeutic and diagnostic programs [6] - The company has a strong history of strategic partnerships with leading pharmaceutical companies, resulting in substantial non-dilutive funding and milestone payments [6]

Core Viewpoint - AC Immune SA is advancing its active immunotherapy candidates ACI-24.060 for Alzheimer's Disease (AD) and ACI-7104.056 for early Parkinson's Disease (PD), with significant upcoming catalysts and a partnership with Takeda Pharmaceuticals that enhances its financial position and development prospects [1][4][14]. Group 1: ACI-24.060 Development - ACI-24.060 is currently being tested in the phase 2 ABATE trial, targeting both AD patients and non-demented adults with Down Syndrome (DS) [1][6]. - Two key catalysts are anticipated: updated guidance on interim results from the ABATE trial expected in the second half of 2024, and interim safety and immunogenicity data for DS patients with AD [2][7]. - The partnership with Takeda includes an upfront payment of $100 million and potential milestone payments up to $2.1 billion, which will support further pipeline development [2][9]. Group 2: Market Opportunity - The global Alzheimer's therapeutics market is projected to exceed $8.18 billion by 2032, with a significant portion of the patient population being those with Down Syndrome, where approximately 30% are expected to develop AD [5][15]. - The global Parkinson's Disease drugs market is expected to reach $6.69 billion by 2029, providing another substantial opportunity for AC Immune with its ACI-7104.056 candidate [15][16]. Group 3: Financial Position - As of March 31, 2024, AC Immune reported total cash of $118.7 million, sufficient to fund operations for at least three years, largely due to partnership agreements [10]. - The company incurred R&D expenses of $17.4 million and G&A expenses of $5.6 million for the three months ending March 31, 2024, resulting in a total cash burn of $23 million per quarter [10].

Company Overview - AC Immune SA is a clinical-stage biopharmaceutical company specializing in precision medicine for neurodegenerative diseases, including Alzheimer's disease, Parkinson's disease, and NeuroOrphan indications driven by misfolded proteins [3] - The company has two clinically validated technology platforms, SupraAntigen® and Morphomer®, which support a diversified pipeline of 16 therapeutic and diagnostic programs, with five in Phase 2 clinical trials and one in Phase 3 [3] - AC Immune has a strong track record of securing strategic partnerships with leading global pharmaceutical companies, resulting in substantial non-dilutive funding through milestone payments and royalties [3] AAIC 2024 Presentations - AC Immune will present three oral presentations at the Alzheimer's Association International Conference (AAIC 2024) in Philadelphia, PA, from July 28 to August 1, 2024 [1] - The presentations will cover the discovery and preclinical development of [18F]ACI-19626, a first-in-class TDP-43-PET tracer, on July 29, 2024 [2] - Another presentation will discuss ACI-24.060, an active immunotherapy that induces anti-Abeta antibodies with binding profiles mirroring clinically validated monoclonal antibodies, on July 30, 2024 [2] - The third presentation will introduce morADC (Morphomer®-Antibody Drug Conjugates), a new class of neurodegenerative disease-fighting drugs, on July 31, 2024 [2] Technology Platforms - SupraAntigen® is a registered trademark of AC Immune SA in multiple territories, including AU, EU, CH, GB, JP, RU, SG, and USA [4] - Morphomer® is also a registered trademark of AC Immune SA in CN, CH, GB, JP, KR, NO, and RU [4]

Core Insights - AC Immune SA is participating in the Jefferies 2024 Global Healthcare Conference on June 5-6, 2024, in New York, with a fireside chat scheduled for June 5 at 3:30 PM (ET) [1] - The company is focused on precision medicine for neurodegenerative diseases, including Alzheimer's and Parkinson's, and has a diversified pipeline with 16 therapeutic and diagnostic programs [3] Company Overview - AC Immune SA is a clinical-stage biopharmaceutical company recognized as a leader in precision prevention for neurodegenerative diseases driven by misfolded proteins [3] - The company has two clinically validated technology platforms, SupraAntigen® and Morphomer®, which support its pipeline [3] - AC Immune has secured strategic partnerships with leading pharmaceutical companies, resulting in over $4.5 billion in potential milestone payments and royalties [3]

Core Insights - AC Immune's stock is experiencing an increase following the release of its Q1 2024 earnings report, which includes a significant operational update [1] - The company has entered into a collaboration agreement with Takeda Pharmaceutical, involving a licensing agreement for AC Immune's ACI-24.060, which includes an upfront payment of $100 million and potential payments of up to $2.1 billion [1] Financial Highlights - The collaboration with Takeda Pharmaceutical includes an upfront payment of $100 million to AC Immune [1] - Potential future payments from the agreement could reach up to $2.1 billion, contingent on option exercise and milestones [1] Market Performance - AC Immune's stock has risen by 45% as of Monday morning, with over 6.6 million shares traded, significantly exceeding the average daily trading volume of approximately 185,000 shares [2] - The company is expected to report initial results from its ongoing Phase 2 clinical trial of ACI-24.060 this month, with further data anticipated in the second half of 2024 [2]

Financial Performance - The company reported a net loss of CHF 17,862 thousand for the three months ended March 31, 2024, compared to a net loss of CHF 17,513 thousand for the same period in 2023, indicating a slight increase in losses[7]. - Total comprehensive loss for the period was CHF 17,846 thousand, slightly better than the CHF 17,521 thousand reported in the previous year[7]. - For the three months ended March 31, 2024, the net loss attributable to equity holders was CHF 17,862 thousand, compared to a loss of CHF 17,513 thousand for the same period in 2023[32]. - The diluted loss per share for the period was CHF (0.18), compared to CHF (0.21) for the same period last year, showing an improvement in loss per share[5]. - The basic and diluted loss per share for the period was CHF (0.18), an improvement from CHF (0.21) in the prior year[32]. Assets and Liabilities - Total assets decreased from CHF 182,814 thousand as of December 31, 2023, to CHF 167,281 thousand as of March 31, 2024, representing a decline of approximately 8.5%[2]. - Shareholders' equity decreased from CHF 160,643 thousand to CHF 144,681 thousand, a reduction of about 9.9%[2]. - Cash and cash equivalents decreased from CHF 78,494 thousand to CHF 57,009 thousand, a decline of approximately 27.4%[2]. - Total current liabilities increased from CHF 13,576 thousand to CHF 14,124 thousand, an increase of about 4%[2]. - As of March 31, 2024, cash and cash equivalents totaled CHF 57,009 thousand, down from CHF 57,434 thousand at the end of March 2023[1]. - AC Immune's accrued expenses totaled CHF 10.5 million as of March 31, 2024, down from CHF 11.1 million as of December 31, 2023, reflecting a decrease of 4.9%[43]. Cash Flow and Investments - Cash provided by operating activities was CHF 704 thousand, a significant recovery from a cash used of CHF (16,769) thousand in the same period last year[1]. - The company reported net cash flows used in investing activities of CHF (23,561) thousand, compared to cash provided of CHF 42,800 thousand in the prior year[1]. - The company invested CHF 0.2 million in laboratory equipment during the first quarter of 2024, representing a 1.6% increase from the beginning of the year[36]. - The total cash outflow for leases was CHF 391,000 for the three months ended March 31, 2024, compared to CHF 458,000 in the prior year[40]. Financial Position - The company has a cash position of CHF 57.0 million and short-term financial assets of CHF 47.8 million as of March 31, 2024, indicating a stable financial outlook[27]. - Short-term financial assets increased significantly to CHF 47.8 million as of March 31, 2024, compared to CHF 24.6 million as of December 31, 2023, marking an increase of 94.5%[49]. - The company recorded a net financial gain of CHF 2.2 million for the three months ended March 31, 2024, compared to CHF 0.1 million in the same period of 2023, indicating a substantial improvement[52]. Revenue and Grants - The company recognized less than CHF 0.1 million in grant income for the three months ended March 31, 2024, down from CHF 0.4 million in the same period of 2023[31]. - The company has not generated any contract revenues for the three months ended March 31, 2024 and 2023[29]. Collaborations and Agreements - The company announced it will regain all global rights to the anti-amyloid beta antibody crenezumab and the anti-Tau antibody semorinemab following the termination of collaboration agreements with Genentech and Roche[30]. - The company received a CHF 14.8 million milestone payment from Janssen, resulting in a nil balance for accounts receivable as of March 31, 2024[50]. - On May 11, 2024, AC Immune entered into a licensing agreement with Takeda Pharmaceuticals, which includes an upfront payment of USD 100 million (CHF 91 million) and potential total payments of approximately USD 2.1 billion (CHF 1.9 billion)[54].