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On Wednesday, JMP Securities maintained a positive stance on Kura Oncology (NASDAQ:KURA), with analyst Reni J. Benjamin reiterating a Market Outperform rating and a price target of $28.00. The stock, currently trading at $5.62, is near its 52-week low of $5.41, having declined about 73% over the past year. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $10 to $40. The reaffirmation of the rating follows Kura's announcement of the timely submission of a New Drug Application (NDA) for their drug candidate, ziftomenib (zifto), aimed at treating relapsed/refractory NPM1-mutated acute myeloid leukemia (AML).
The NDA submission is a significant milestone for Kura, as zifto has received Breakthrough Therapy Designation (BTD) from the FDA. This designation accelerates the development and review process for drugs intended to treat serious or life-threatening conditions. The FDA now has a 60-day period, ending in late May, to decide whether the NDA submission is complete. Kura is also seeking a priority review, which could lead to a potential approval date by late November or early December of this year.
Benjamin's comments underscored confidence in Kura's operational capabilities and the anticipated revenue generation by late 2025 or early 2026. The analyst highlighted the company's solid financial position, with a cash reserve of $727.4 million. This includes the $420 million in remaining milestone payments, with an expectation of $240 million to be recognized in 2025. InvestingPro analysis reveals strong financial health indicators, including a robust current ratio of 9.46 and minimal debt-to-equity ratio of 0.04, suggesting excellent liquidity and balance sheet strength.
The analyst pointed out the value proposition of Kura's shares, noting that they are currently trading at an enterprise value of approximately negative $270 million. This valuation, combined with the progress of zifto and its funding for a first-line AML treatment, positions Kura Oncology as an attractive investment opportunity, according to JMP Securities. The potential approval of zifto by the year's end could be a pivotal event for the company. InvestingPro analysis indicates the stock is currently undervalued, with multiple ProTips highlighting strong free cash flow yield and oversold conditions. For deeper insights into Kura's valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Kura Oncology reported a stronger-than-expected earnings performance for the fourth quarter of 2024. The company achieved an earnings per share (EPS) of -$0.22, significantly surpassing the forecast of -$0.57. This was accompanied by a notable increase in collaboration revenue, which reached $53.9 million compared to none in the same quarter the previous year. Kura Oncology continues to make progress with its drug pipeline, including the potential submission of a New Drug Application for its AML treatment, ziftomenib, expected in the second quarter of 2025.
In addition to financial results, Kura Oncology is advancing its clinical trials, with plans to present preclinical data on KO-2806 at the American Association for Cancer Research Annual Meeting. The company is also conducting trials for its other drug candidates, including ziftomenib and tipifarnib, in various cancer indications. Furthermore, Kura has completed enrollment in a Phase 2 trial for ziftomenib and is preparing for a Phase 1/2 trial of tipifarnib in combination with alpelisib.
The company’s strategic focus includes collaboration with Kyowa Kirin Co., Ltd., which supports the development and potential commercialization of ziftomenib. Kura Oncology's initiatives align with its strategy to expand its presence in the oncology market, and the company remains well-capitalized to support its ongoing research and development efforts.
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