Goldman Sachs has increased the price target for Ideaya Biosciences (NASDAQ: IDYA) to $47.00, up from $44.00, while maintaining a Buy rating on the stock.
The adjustment follows recent clinical data presented by the company regarding IDE397, a first-in-class MAT2A inhibitor aimed at treating MTAP deletion (MTAPdel) tumors.
IDE397 is currently being evaluated in MTAPdel tumors, such as lung and bladder cancer, in both monotherapy and combination therapy settings. The company has shown initial clinical activity at a Ph2 expansion dose of 30 mg once daily, which has been promising. Ideaya Biosciences is looking to establish a registrational path for monotherapy in 2025.
In addition to monotherapy, IDE397 is also being studied in combination with other drugs. It is being evaluated alongside AMGN's PRMT5 inhibitor AMG193 in MTAPdel non-small cell lung cancer (NSCLC) and GILD's Trop2-directed antibody-drug conjugate (ADC) Trodelvy in MTAPdel urothelial cancer. These combination studies are considered a priority for the company.
Initial results have shown that IDE397 monotherapy exhibits promising anti-tumor activity in MTAPdel NSCLC and urothelial cancer. However, Goldman Sachs notes that further clinical results are anticipated as the Phase 2 data matures and enrollment for the combination studies continues.
Following the recent data, Goldman Sachs has updated its model for IDE397, now estimating unadjusted peak sales of $2.3 billion, a significant increase from the previous estimate of $1.25 billion.
Ideaya recently completed a public offering, raising approximately $283.8 million, a move expected to support its ongoing pharmaceutical research and operations. This development follows the company's announcement of a robust financial position with approximately $952.7 million in cash, cash equivalents, and marketable securities as of June 30, 2024.
In terms of research, Ideaya Biosciences has made significant progress in its Phase 2 study of IDE397, a treatment for MTAP-deleted non-small cell lung cancer and urothelial cancer. Both Mizuho and RBC Capital have raised their price targets for Ideaya Biosciences shares based on the promising interim data. Oppenheimer also maintained an Outperform rating on the company's stock, despite reducing the price target to $53 from the previous $60.
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