Is Neoleukin Therapeutics Stock Halal?

May 10, 2022

Table of Contents

Key Points

After examining Neoleukin’s source of revenue, ratio of interest expense to total operating expense, and ESG impact we are comfortable investing in Neoleukin from a Halal perspective.

Company Overview

Neoleukin Therapeutics develops immunotherapies for cancer, inflammation, and autoimmune disorders using a proprietary protein design technology. All Neoleukin product candidates are in early clinical or preclinical development.

How much of Neoleukin Therapeutics Inc.’s revenue comes from haram?

The company has not generated product revenue or achieved profitability since its inception in 2003 and expects to continue to incur net losses for the foreseeable future. Neoleukin funds its operation through public or private equity or debt financings. As of December 31, 2021, the company had approximately $142.5 million in cash and cash equivalents, sufficient to sustain the company’s operation until the second half of 2023. Neoleukin expects a significant portion of its future revenue and cash resources from collaboration or similar agreements.

Practical Islamic finance concludes

Neoleukin Therapeutics has no revenue source yet, and its business model is not inherently haram.

Does Neoleukin Therapeutics Inc. rely on interest to operate?

	Fiscal Year ended 12/31/2021	Fiscal Year ended 12/31/2020	Fiscal Year ended 12/31/2019
Interest Expense	0	0	0
Total Operating Expense	60,698	33,728	70,959
Interest Expense / Total Operating Expense	0.00%	0.00%	0.00%

*Numbers in thousands, of U.S. dollars

Practical Islamic finance concludes:

Riba is not used in Neoleukin Therapeutics Inc.’s operations.

What is Neoleukin Therapeutics Inc.’s Environmental, Social, and Governance (ESG) impact?

Environment

Neoleukin uses sustainable building materials, implements energy-saving utility practices, and applies waste reduction measures in its laboratories and office facilities.

Social

Neoleukin Therapeutics has a Glassdoor rating of 4.5 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.