RBC Capital maintained its Outperform rating and $61.00 price target for shares of Ideaya Biosciences (NASDAQ:IDYA). The firm's stance comes after reviewing the company's recent updates on the regulatory path for its drug candidate, darolutamide (daro), particularly in light of the positive phase II data and the FDA's agreement on the design and endpoints for a registrational trial.
Ideaya's conference call today provided a clearer strategy for daro's regulatory journey. While acknowledging the uncertainties regarding the timing and possibility of early approval due to daro's novel status, RBC Capital expressed confidence in the drug's commercial potential for neoadjuvant uveal melanoma (UM).
The developments today have, according to the firm, significantly reduced the commercial risks associated with the drug.
The firm's analysis is buoyed by expert opinions suggesting that daro could significantly impact the treatment landscape for UM. As a result, RBC Capital has increased the probability of success (PoS) for the neoadjuvant program, factoring in sufficient time for the trial to unfold and the opportunity it presents for patients at various stages of UM.
RBC Capital's rating also takes into account the speculative nature of the investment, reflecting the inherent risks in drug development. Nonetheless, the firm stands by its $61 price target, indicating a belief in the strong potential for Ideaya Biosciences' daro in the market.
In summary, RBC Capital's reiteration of its rating and price target on Ideaya Biosciences hinges on the recent positive clinical developments and regulatory discussions for daro, with an optimistic outlook on its market potential in treating uveal melanoma.
Ideaya Biosciences has announced encouraging interim results from its ongoing Phase 2 trial for darovasertib, a treatment for neoadjuvant uveal melanoma. The data shows significant tumor shrinkage and eye preservation, leading the company to plan a Phase 3 trial.
The promising results have prompted several financial firms to adjust their outlook on Ideaya Biosciences. Citi maintained its Buy rating with a steady price target of $58, reflecting optimism about the drug's efficacy and potential for regulatory success.
Meanwhile, Goldman Sachs updated its outlook, increasing the price target to $48 and maintaining a Buy rating. Stifel also adjusted its price target to $66, despite a potential delay in the drug development process, while BTIG reaffirmed its Buy rating with a steady price target of $62.
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