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Investing.com - Citizens JMP raised its price target on Ideaya Biosciences (NASDAQ:IDYA) to $45.00 from $41.00 on Monday, maintaining a Market Outperform rating on the stock. The company, currently valued at $2.38 billion, has shown strong momentum with a 10.63% return over the past week. According to InvestingPro data, analyst targets for IDYA range from $25 to $74.
The price target increase follows strong Phase 1 clinical data from Ideaya’s partner Hengrui for the DLL3-ADC IDE849 (SHR4849) drug candidate in Chinese patients, which Citizens JMP noted "cleared the hurdle with more room than anticipated." The company maintains a strong financial position, with more cash than debt on its balance sheet and a healthy current ratio of 12.39.
Citizens JMP highlighted that IDE849 demonstrated "best-in-class efficacy as well as duration compared to the competitive landscape," stating that the drug candidate "checked all the boxes" in the updated data.
The firm increased its probability of success estimate for IDE849 to 25% from the previous 15%, which contributed to the higher price target derived from its discounted cash flow model.
Ideaya Biosciences held an R&D day on Monday morning, which Citizens JMP expected would provide more details on the IDE849 data and potentially drive a positive stock reaction of approximately 10%.
In other recent news, Ideaya Biosciences Inc . and Hengrui Pharma presented promising data from a Phase 1 trial of their cancer drug IDE849 at the World Conference on Lung Cancer. The drug, targeting DLL3 in small cell lung cancer, demonstrated a 77.1% overall response rate and a 60% confirmed response rate in second-line patients. Additionally, Ideaya has enrolled its first non-small cell lung cancer patient in a Phase 1/2 trial combining its MAT2a inhibitor IDE397 with Gilead’s Trodelvy, expanding the study beyond urothelial cancer. Barclays initiated coverage on Ideaya Biosciences with an Overweight rating and a $40.00 price target, citing anticipated Phase 1 data for IDE849. Citizens JMP also started coverage with a Market Outperform rating and a $41.00 price target. Furthermore, JPMorgan raised its price target on Ideaya to $74.00, maintaining an Overweight rating, and highlighted the de-risked status of darovasertib in metastatic uveal melanoma. These developments underscore the ongoing progress and interest in Ideaya’s oncology therapies.
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