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NEW YORK (TheStreet) -- Idera Pharmaceuticals (IDRA) - Get Free Reportstock is rising by 8.78% to $3.47 in late afternoon trading on Monday, after the company announced a partnership with GlaxoSmithKline (GSK) to develop treatments for renal diseases.

The clinical-stage bio-pharmaceutical company, which focuses its research on rare diseases, will team up with GSK to research, develop and commercialize treatments of renal disease, which affects the kidneys, according to a statement on Monday. 

Idera is eligible to receive about $100 million in development and regulatory payments. The company is also eligible to receive royalties on all sales of the product.

"Through such collaborations we have the opportunity to strengthen our balance sheet to enable us to further our own clinical development and commercial aspirations," said Clayton Fletcher, Idera's senior VP of business development, in a statement.

Separately, TheStreet Ratings team rates IDERA PHARMACEUTICALS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate IDERA PHARMACEUTICALS INC (IDRA) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 20.2% when compared to the same quarter one year ago, dropping from -$9.46 million to -$11.37 million.
  • Net operating cash flow has decreased to -$11.76 million or 46.04% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, IDERA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 13.4%. Since the same quarter one year prior, revenues fell by 33.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • IDRA's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 11.57, which clearly demonstrates the ability to cover short-term cash needs.
  • You can view the full analysis from the report here: IDRA

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.