On Monday, BTIG reaffirmed its Buy rating on shares of Ideaya Biosciences (NASDAQ:IDYA) with a steady price target of $62.00. The firm's statement highlighted the updated trial data for darovasertib in treating uveal melanoma, noting the drug's potential to significantly impact treatment by preserving patients' eyesight in up to 61% of cases. The analyst pointed out that the market's reaction was muted due to uncertainties regarding the approval timeline and the absence of a clear accelerated approval from the FDA.
Ideaya Biosciences has shared new data from a trial co-sponsored by the company, which could mark darovasertib as a pivotal drug in the neoadjuvant treatment of uveal melanoma. The key opinion leader (KOL) during the investor call suggested that the drug would see widespread use upon approval, indicating its potential influence on future treatment standards.
The analyst commented on the market's reaction, which was subdued on the day of the announcement. The reasons were attributed to confusion over the timeline for receiving approval and the lack of an explicit green light for accelerated approval from the regulatory body.
Despite this, the firm maintains a positive outlook, with the agreed-upon Phase 3 plan offering a path to full approval around the year 2028, which is slightly later than the mid-to-late 2027 expectation based on objective response rate (ORR) as a primary endpoint under accelerated approval.
In other recent news, IDEAYA Biosciences (NASDAQ:IDYA) reported promising results from its Phase 2 trial for darovasertib, a treatment for neoadjuvant uveal melanoma. The trial revealed significant tumor shrinkage and eye preservation, prompting plans for a Phase 3 trial. The company also recently completed a public offering, raising approximately $283.8 million, which has strengthened its financial position.
Financial services firms have adjusted their outlook on IDEAYA Biosciences in light of these developments. Stifel raised its stock price target for the company, citing optimism about the potential of the company's drug combination involving IDE397 and AMG193. Goldman Sachs also increased the price target for IDEAYA Biosciences following the presentation of promising clinical data regarding IDE397.
On the other hand, Oppenheimer reduced its price target but maintained an Outperform rating on the company's stock, following updates on their drug candidate IDE397 and a new licensing deal for a B7-H3 antibody-drug conjugate. Meanwhile, Mizuho increased its price target for IDEAYA Biosciences based on the promising interim Phase 2 data.
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