On Friday, H.C. Wainwright maintained a Buy rating on Kura Oncology (NASDAQ:KURA) shares with a price target of $32.00. The firm's analyst highlighted the potential of Kura's menin inhibitor, ziftomenib, in treating advanced gastrointestinal stromal tumors (GIST).
Recent preclinical data presented at the 2024 EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics showed promising results for ziftomenib in this application.
Kura Oncology is advancing towards a Phase 1 clinical trial, set to commence in the first half of 2025, which will evaluate ziftomenib in combination with imatinib, a KIT inhibitor, for patients with advanced GIST. This follows the recent clearance of an Investigational New Drug (IND) application, signaling regulatory approval to proceed with human trials.
The current standard of care for frontline GIST includes imatinib. However, many patients eventually develop resistance through secondary KIT mutations. While other tyrosine kinase inhibitors like sunitinib can target these imatinib-resistant genotypes, they often provide limited response rates and unsatisfactory long-term outcomes, underlining the need for new treatments.
Preclinical studies have shown that the combination of ziftomenib and imatinib significantly reduced KIT protein expression in GIST xenograft models, inhibited oncogenic signaling pathways, and induced apoptosis after only five days of treatment. These effects were observed to deepen with an extended treatment period of eight days.
H.C. Wainwright's reiteration of the Buy rating and $32 price target for Kura Oncology reflects the firm's confidence in ziftomenib's therapeutic potential and its role in addressing the unmet medical needs in GIST treatment.
In other recent news, Kura Oncology, a biopharmaceutical company, has been the subject of several significant developments. UBS initiated coverage on Kura Oncology with a Buy rating, expressing optimism about the company's lead drug program, ziftomenib, targeting acute myeloid leukemia (AML).
However, Stifel downgraded Kura Oncology's stock from Buy to Hold due to anticipated challenges for ziftomenib in gaining market share against competitors.
Kura Oncology recently welcomed Michael J. Vasconcelles, M.D., to its board, who brings over 25 years of oncology drug development experience. The company reported a net loss of $50.8 million for the quarter due to increased research and development expenses, but its strong cash position of $491.5 million is expected to fund operations into 2027.
In terms of future developments, Kura Oncology plans to present updated data from the KOMET-007 trial, report topline data from the ziftomenib registration-directed trial, and initiate a proof-of-concept study for ziftomenib and imatinib in advanced GIST. These recent developments underscore Kura Oncology's commitment to advancing its oncology pipeline.
InvestingPro Insights
Kura Oncology's innovative approach to treating gastrointestinal stromal tumors (GIST) with ziftomenib is reflected in its market performance and financial metrics. According to InvestingPro data, the company has seen a remarkable 131.81% price total return over the past year, indicating strong investor confidence in its pipeline and potential. This aligns with the positive outlook from H.C. Wainwright's Buy rating and $32 price target.
However, it is important to note that Kura Oncology is still in the development stage, which is typical for biotech companies with promising but yet-to-be-commercialized treatments. InvestingPro Tips reveal that the company is not profitable over the last twelve months and net income is expected to drop this year.
This is consistent with the significant investment required for clinical trials and drug development, as evidenced by the adjusted operating income of -$200.09 million in the last twelve months.
On a positive note, Kura Oncology holds more cash than debt on its balance sheet, which is crucial for funding ongoing research and upcoming clinical trials, including the Phase 1 trial for ziftomenib scheduled for 2025. Moreover, the company's liquid assets exceed short-term obligations, providing financial flexibility as it advances its pipeline.
For investors interested in a deeper analysis, InvestingPro offers 7 additional tips for Kura Oncology, providing a more comprehensive view of the company's financial health and market position.
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