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Investing.com - Goldman Sachs resumed coverage on Ideaya Biosciences (NASDAQ:IDYA), currently trading at $22.97 with a market capitalization of $2 billion, with a Neutral rating and a price target of $25.00 on Thursday. InvestingPro data shows the company maintains strong financial health with more cash than debt on its balance sheet.
The investment bank’s rating is based on a discounted cash flow analysis using a 14% discount rate and 3% terminal growth rate, which it considers appropriate given Ideaya’s late-stage, clinically de-risked lead asset and early-stage pipeline. The company maintains a healthy current ratio of 13.92, indicating strong liquidity to fund its operations.
Goldman Sachs identified several potential upside risks for Ideaya, including better-than-expected efficacy for darovarsertib in Phase 2 median overall survival data and Phase 2/3 progression-free survival data.
Additional upside factors include a clear path to registration for darovasertib in the adjuvant uveal melanoma setting and the potential for best-in-class efficacy and safety data for pipeline products.
Downside risks highlighted in the coverage include negative clinical updates for darovasertib, slower-than-expected development of pipeline assets, and failure to execute on business development initiatives.
In other recent news, IDEAYA Biosciences has received FDA clearance for a Phase 1 trial of its investigational drug IDE849, targeting several solid tumors. This marks a significant step in the company’s oncology pipeline, which includes promising preliminary results from ongoing trials. Additionally, IDEAYA is advancing its Phase 3 trial for darovasertib as a neoadjuvant therapy for primary uveal melanoma, following successful discussions with the FDA. This trial will assess the drug’s safety and efficacy, focusing on eye preservation and visual acuity maintenance. Wells Fargo (NYSE:WFC) has initiated coverage of IDEAYA with an overweight rating, setting a price target of $44, citing potential opportunities not reflected in the current stock price. Meanwhile, RBC Capital has lowered its price target for IDEAYA to $30 but maintained an Outperform rating, highlighting a major Phase III readout expected in 2025. IDEAYA shareholders recently elected directors and approved auditors at the annual meeting. These developments reflect the company’s ongoing efforts in drug development and clinical trials, with multiple catalysts anticipated in the coming months.
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