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On Wednesday, Evercore ISI initiated coverage on OnKure Therapeutics Inc. (NASDAQ: OKUR), assigning the stock an Outperform rating. The research firm’s analyst, Jonathan Miller, provided insights into the company’s position in the market, particularly in the context of its work on PI3K inhibitors for metastatic breast cancer (mBC). According to InvestingPro data, OnKure currently maintains a strong liquidity position with more cash than debt on its balance sheet, though the company is quickly burning through its reserves.
Miller highlighted that PI3K is a well-validated target in mBC, but noted that even selective inhibitors have a substantial toxicity burden. He pointed out that next-generation inhibitors are showing promise in changing this dynamic. The analyst referenced Eli Lilly (NYSE:LLY)’s recent acquisition of Scorpion Therapeutics for $2.5 billion as an indication of the pharmaceutical industry’s investment in this mechanism’s role in breast cancer treatment. With a current market capitalization of just $34 million and trading near its 52-week low, OnKure represents a significantly smaller player in this space.
The field, however, is described as relatively crowded, with multiple strategies aiming to deliver strong efficacy and an improved safety profile, especially for use in first-line (1L) combination therapies. OnKure Therapeutics, although a smaller entity with limited data available, is seen as having a differentiated mechanism of action (MoA) from other active next-generation programs. The data available suggests that OnKure may also have a differentiated safety profile, which could be an advantage in this complex landscape.
Miller’s commentary underscores the potential of OnKure’s approach, while also recognizing the competitive environment and the need for further data to fully understand the company’s positioning. His analysis suggests a cautiously optimistic outlook for OnKure as it progresses with its therapeutic developments.
OnKure Therapeutics Inc. has not released any further statements regarding the initiation of coverage by Evercore ISI. The market will continue to monitor the company’s progress and the emerging data on its PI3K inhibitor program, which could potentially lead to a new treatment option for mBC with a favorable safety profile.
In other recent news, OnKure Therapeutics has seen adjustments in market expectations following an analyst update from H.C. Wainwright. The analyst, Robert Burns, has lowered the company’s price target to $34, down from the previous $40, while maintaining a Buy rating on the stock. This adjustment comes after OnKure presented initial results for its lead candidate, OKI-219, which is in Phase 1 trials for solid tumors. The data showed that OKI-219, at a 900mg dosage administered twice daily, achieved steady-state exposure levels with significant antitumor activity in preclinical models. Despite no objective responses in patients treated at this dose level, the drug was well-tolerated, with only mild adverse events reported. No dose interruptions or discontinuations were due to adverse events, signaling a positive safety profile. Burns anticipates further updates from OnKure, including results for OKI-219 monotherapy and its combination with FASLODEX, expected in the second half of 2025. The continued Buy rating reflects confidence in OnKure’s research efforts, despite the lowered price target.
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