On Thursday, RBC Capital adjusted its price target for Ideaya Biosciences (NASDAQ: IDYA) shares, increasing it to $61 from the previous target of $53, while maintaining an Outperform rating on the stock.
This change follows Ideaya's recent clinical update on its IDE397 treatment, which has shown promising results in monotherapy efficacy and safety for MTAP-deletion solid tumors, including non-small cell lung cancer (NSCLC) and urothelial carcinoma (UC).
The clinical update on Monday revealed a 39% objective response rate (ORR) for IDE397, a MAT2A inhibitor, which RBC Capital believes stands out favorably against competing drugs, such as PRMT5 inhibitors.
The data reinforce the potential for IDE397 to be used in combination with other treatments, which could enhance the antitumor activity of AMG 193, Trodelvy, and other Ideaya-owned MTAP candidates.
RBC Capital's increased price target reflects their confidence in IDE397's ability to differentiate Ideaya's MTAP strategy. The firm anticipates that these positive developments will support Ideaya's plan to advance IDE397 towards registrational development by 2025.
The analyst from RBC Capital expressed greater conviction in the drug's prospects after a review of the clinical data and feedback from a one-on-one meeting with Ideaya's management. The firm reiterated its Outperform rating, while also acknowledging the speculative risk associated with the biopharmaceutical company's stock.
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