Buy NLTX: Another Biotech Liquidation

Neoleukin Therapeutics (NLTX)

March 29, 2023

Market Cap: $35.4MM

Enterprise Value: -$42MM

Stock Price: $0.64

Target Price: $0.84

Upside: +31%


NLTX is trading at a market cap of $35MM and an enterprise value of negative $42MM. It has announced it is laying off 82% of its workforce including its president and CEO. The company is undergoing a strategy review to “maximize shareholder value.” While the company hasn’t formally announced a liquidation, I believe that is the most likely outcome. With conservative cash burn assumptions, I see 38% upside. I would buy up to a price of $0.69.


Last NLTX Slide