Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Thursday, BTIG analyst Justin Zelin downgraded Kura Oncology stock (NASDAQ:KURA) from Buy to Neutral. Zelin cited concerns over the recent KOMET-001 study results for the company’s drug, ziftomenib. The downgrade was driven by the lack of clear competitive differentiation and safety and efficacy data, which has led to uncertainty about the drug’s potential. According to InvestingPro data, KURA shares have fallen over 50% in the past six months, though they’ve shown a notable 12.7% recovery in the past week.
Kura Oncology’s shares are facing challenges in the near term, according to the BTIG analyst. The company’s recent profit-sharing agreement with Kyowa Kirin for the U.S. market and its position as a second-to-market player contribute to the limited upside for the stock. Additionally, the unclear differentiation of ziftomenib compared to Syndax’s revumenib, which is already FDA approved and has a Buy rating from BTIG with a $43 price target, further complicates Kura’s position in the market. InvestingPro data shows analyst targets ranging from $10 to $40, with a notably bullish consensus recommendation of 1.44 (where 1 is Strong Buy).
The analyst remains optimistic about the menin inhibitor class of drugs as a whole, expressing a belief that investors will recognize drugs that can establish themselves as either first-in-class or best-in-class. However, BTIG has decided to step back from Kura Oncology’s stock until there is more clarity regarding ziftomenib’s ability to demonstrate a distinct and meaningful profile. While the company maintains strong liquidity with a current ratio of 11.47 and holds more cash than debt, InvestingPro analysis indicates the company is quickly burning through its cash reserves.
The statement from BTIG highlights that the firm does not issue price targets for stocks that are rated Neutral. This policy reflects the firm’s stance of neutrality and the need for further information before making a more definitive judgment on Kura Oncology’s stock potential. The downgrade comes as a response to the recent developments and data presented in the KOMET-001 study readout. Based on InvestingPro’s Fair Value analysis, KURA is currently fairly valued. Subscribers to InvestingPro can access 12 additional ProTips and a comprehensive Pro Research Report that provides deeper insights into the company’s financial health and market position.
In other recent news, Kura Oncology has been the subject of several notable developments. H.C. Wainwright has maintained a Buy rating on Kura Oncology, raising the stock target to $40. This follows Kura’s disclosure of positive topline results from the Phase 2 KOMET-001 clinical trial. The trial, evaluating ziftomenib monotherapy in patients with relapsed/refractory NPM1-mutated AML, met its primary complete response endpoint with statistical significance.
In terms of infrastructure, Kura Oncology has secured a new headquarters in San Diego, California. The lease agreement, signed with HCP Life Science REIT, Inc., secures approximately 32,512 square feet for Kura’s principal executive offices and research and development facilities.
Kura Oncology has also seen changes in its executive team, with the departure of Chief Medical (TASE:PMCN) Officer Stephen Dale due to health challenges. The company has appointed Mollie Leoni as the new Chief Medical Officer and Francis Burrows as the Chief Scientific Officer. Dr. Leoni and Dr. Burrows have been instrumental in the development of ziftomenib and other cancer therapies.
Furthermore, Kura Oncology has expanded its stock option plan, reserving an additional 1.9 million shares of common stock for the 2023 Inducement Option Plan. This move is aimed at attracting new employees to contribute to the company’s growth and success in the pharmaceutical industry.
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