Akebia Therapeutics, Inc. (NASDAQ:AKBA) has announced an extension of its supply agreement with STA Pharmaceutical Hong Kong Limited, as per the recent 8-K filing with the Securities and Exchange Commission. The amendment, signed on Tuesday, prolongs the duration of the original contract until January 1, 2032.
The Cambridge, Massachusetts-based biopharmaceutical company initially entered into the agreement with STA on February 10, 2021, for the manufacturing of vadadustat, a drug product developed by Akebia. Vadadustat is an investigational treatment for anemia due to chronic kidney disease.
Under the terms of the newly amended agreement, the companies have revised the volume-based pricing structure along with certain other provisions related to the product. These changes are expected to be detailed in the company's forthcoming Quarterly Report on Form 10-Q for the quarter ending September 30, 2024.
The extension of this agreement signifies Akebia's ongoing commitment to the development and potential commercialization of vadadustat. The financial terms and specifics of the revised pricing structure have not been disclosed in the filing. However, the company plans to file a copy of the amendment as an exhibit to its upcoming quarterly report.
This strategic move comes as part of Akebia's efforts to secure the long-term supply of vadadustat, which is currently under clinical investigation.
The information disclosed is based on a press release statement.
In other recent news, Akebia Therapeutics has made significant strides in the commercialization of its anemia drug, Vafseo. The Center for Medicare & Medicaid Services approved additional reimbursement for Vafseo to dialysis organizations, a move that is expected to support the adoption of the drug within these practices.
Furthermore, Akebia has signed a substantial commercial supply agreement with U.S. Renal Care for Vafseo, which is set to be available in January 2025.
Akebia has also initiated a clinical trial, known as the VOICE trial, in collaboration with U.S. Renal Care to evaluate Vafseo's effects on dialysis patients. In a strategic shift, Akebia ended its collaboration with CSL (OTC:CSLLY) Vifor and amended loan terms with Kreos Capital VII, managed by BlackRock Inc (NYSE:BLK), thus regaining full sales rights to Vafseo in the United States.
H.C. Wainwright has reiterated a Buy rating for Akebia, reflecting confidence in the company's commercial strategy and the potential market penetration of Vafseo.
Financially, Akebia reported an improvement in Q1 2024 revenues, totaling $32.6 million, despite a net loss of $18 million. The company remains well-capitalized with $42 million in cash and equivalents.
As part of the executive team changes, Akebia appointed Erik Ostrowski as Senior Vice President, Chief Financial Officer, Chief Business Officer, Treasurer, and Principal Financial (NASDAQ:PFG) Officer.
InvestingPro Insights
To provide additional context to Akebia Therapeutics' (NASDAQ:AKBA) recent supply agreement extension, let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Akebia's market capitalization stands at $275.48 million. The company's revenue for the last twelve months as of Q2 2024 was $174.5 million, with a revenue growth of -13.13% over the same period. This decline in revenue aligns with the company's focus on securing long-term partnerships, such as the extended agreement with STA Pharmaceutical Hong Kong Limited, which may help stabilize future revenue streams.
InvestingPro Tips highlight that Akebia is not currently profitable, with a negative P/E ratio of -7.17 for the last twelve months as of Q2 2024. This underscores the importance of the company's efforts to optimize its supply chain and potentially reduce costs through volume-based pricing adjustments mentioned in the article.
Despite the challenges, there are positive signals. An InvestingPro Tip notes that two analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about Akebia's future performance. This could be related to the company's strategic moves, including the extended supply agreement for vadadustat.
It's worth noting that InvestingPro offers 13 additional tips for Akebia Therapeutics, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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