Assembly Biosciences has never turned a profit and is still at least four years from launching its first product. But investors have become so bullish on its prospects that they’ve pushed its stock market value to nearly $1 billion.
In recent months, the 5-year-old Carmel biotech has won plenty of attention from Wall Street and has secured more than $100 million through licensing deals and a stock offering to help fund expensive clinical trials.
In January, the company raised $50 million in a licensing deal with pharmaceutical giant Allergan Plc, which bought the rights to develop Assembly Biosciences’ early-stage compounds for severe gastrointestinal disorders, such as ulcerative colitis, Crohn’s disease, irritable bowel syndrome and related conditions. The first drug could enter the clinic for testing next year, analysts said.
And in November, the company raised another $60 million in a secondary stock offering.
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