Mirati shares-‘dead shares’
2022.12.08 08:27
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Mirati shares-‘dead shares’
Budrigannews.com – (NASDAQ) Mirati Therapeutics after investors were dissatisfied with the company’s lung cancer treatment, Adagrasib, yesterday, the stock dropped over 30%.
Yesterday, Mirati held an Investor Event to inform investors of the ESMO Immuno-Oncology Annual Congress data.
Because the MRTX story is “far from crystal clear,” BMO analysts lowered the rating to Market Perform from Outperform.
“The story gets more difficult the more you have to explain it. Although adagrasib and pembrolizumab may have additive efficacy when used together, we anticipate a challenging, time-consuming, and costly path to Phase 3 data. In a client note, the analysts stated, “We think MRTX is likely dead money until we get Phase 3 data (could be years) and the possibility of an acquisition is likely off the table for the time being (an acquirer would have to spend a significant sum to run these trials).”
After taking in the news from yesterday, JPMorgan analysts changed their rating from Overweight to Neutral and took the stock off the broker’s Analyst Focus List (AFL).
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In a note, the analysts stated, “We see a challenging outlook for adagrasib as a combo partner to pembrolizumab in the TPS>1% segment of NSCLC.”
“Reduced peak sales forecasts in 1L/2L NSCLC and for sitravatinib, as well as POS assumptions for the PD-1 combination therapy with adagrasib” prompted them to lower the price target from $94 to $65 per share.
After a sharp decline yesterday, Mirati Therapeutics is up nearly 2% in pre-market trading on Thursday.
