On Wednesday, Mizuho Securities maintained its Outperform rating on Ideaya Biosciences (NASDAQ:IDYA) shares with a price target of $55.00. The affirmation follows recent updates from the company regarding its lead drug candidate, darovasertib, in the treatment of neoadjuvant uveal melanoma (nUM). The updates included new Phase 2 data and a summary of a Type C meeting with the U.S. Food and Drug Administration (FDA) concerning the pivotal study design for darovasertib in nUM.
Ideaya Biosciences experienced a stock price decline of 4% on Tuesday, contrasting with a 2% drop in the broader biotech index. Despite this, Mizuho expressed optimism about the company's progress, particularly highlighting the FDA's regulatory update as a near best-case scenario. According to the firm, the update from the FDA provides a clear pathway to potentially pivotal top-line data in 2028.
The analyst at Mizuho has adjusted the probability of success (POS) assumption for darovasertib in nUM from 50% to 60%, reflecting increased confidence in the drug's prospects. However, the anticipated timeline for a potential U.S. launch of the drug has been revised from 2027 to 2029. This change is attributed to the latest regulatory discussions and data evaluations.
Despite the timeline adjustment, Mizuho's stance on Ideaya Biosciences remains positive. The firm's analysis suggests that the potential benefits and risks are favorably balanced. Mizuho continues to recommend Ideaya Biosciences as a strong player in the oncology sector, maintaining the Outperform rating on the company's stock.
In other recent news, Ideaya Biosciences has been the subject of multiple financial firm analyses following the announcement of positive interim results from its Phase 2 trial for darolutamide (daro), a treatment for neoadjuvant uveal melanoma.
The data showed significant tumor shrinkage and eye preservation, leading the company to plan a Phase 3 trial. RBC Capital maintained its Outperform rating and $61.00 price target for shares of Ideaya Biosciences, expressing confidence in the drug's commercial potential.
Citi also maintained its Buy rating with a steady price target of $58, while Goldman Sachs increased its price target to $48 and Stifel adjusted its price target to $66. Lastly, BTIG reaffirmed its Buy rating with a steady price target of $62. These recent developments are part of a broader pattern of financial firms adjusting their outlook on Ideaya Biosciences due to its promising clinical data.
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