Barclays initiates Ideaya Biosciences stock with Overweight rating

Published 04/09/2025, 09:42
Barclays initiates Ideaya Biosciences stock with Overweight rating

Investing.com - Barclays initiated coverage on Ideaya Biosciences (NASDAQ:IDYA) with an Overweight rating and a $40.00 price target on Thursday. The company, currently trading at $25.76, has shown strong momentum with a 37% gain over the past six months. According to InvestingPro data, analysts are highly bullish on the stock, with price targets ranging from $25 to $74.

The research firm highlighted the upcoming Phase 1 data expected in the third quarter of 2025 for IDE849, a DLL3 antibody-drug conjugate (ADC) targeting small cell lung cancer (SCLC).

Barclays noted that while previous DLL3 programs failed, recent validation from competitors like Amgen and Zai Lab, along with early signals from IDE849, suggest an improved probability of success for Ideaya’s approach.

The firm established clear benchmarks for success, including an objective response rate above 50%, median progression-free survival exceeding 6 months, and a discontinuation rate below 10%.

Based on analysis of Zai Lab’s durability data, Barclays projects probability-adjusted peak sales of approximately $600 million by 2035 for Ideaya’s DLL3 program in SCLC, representing $9 of their $40 price target.

In other recent news, Ideaya Biosciences has been in the spotlight with several key developments. The company announced a $210 million exclusive licensing agreement with Servier for its eye cancer treatment, darovasertib. Under this deal, Servier gains regulatory and commercial rights outside the United States, while Ideaya retains U.S. rights and could earn up to an additional $320 million in milestone payments. Additionally, Ideaya submitted an investigational new drug application to the U.S. FDA for IDE892, targeting MTAP-deleted cancers, with plans for a Phase 1 trial in late 2025. On the analyst front, Citizens JMP initiated coverage of Ideaya with a Market Outperform rating, setting a price target of $41. Meanwhile, JPMorgan raised its price target to $74, maintaining an Overweight rating, citing de-risking of darovasertib. The company also announced the agenda for its upcoming R&D Day, featuring presentations on several oncology programs. These recent updates highlight Ideaya’s ongoing strategic and clinical advancements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.