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Investing.com - UBS maintained its Buy rating and $50.00 price target on Ideaya Biosciences (NASDAQ:IDYA) in a research note released Tuesday. According to InvestingPro data, the stock has shown remarkable momentum with a 41% gain over the past six months, while maintaining a strong financial position with more cash than debt on its balance sheet.
UBS analyst David Dai identified Ideaya Biosciences as a top pick in SMID Biotechnology, highlighting the company’s lead asset darovasertib (daro) as a potentially transformative therapy for uveal melanoma that remains underappreciated by the market. With a market capitalization of $2.26 billion and analyst targets ranging from $27 to $74, InvestingPro subscribers can access 10+ additional exclusive insights about IDYA’s growth potential.
The firm estimates darovasertib could reach $1.3 billion in peak sales potential, significantly higher than the $800 million peak sales currently priced into the stock. UBS cited the drug’s clinical efficacy, safety profile, and convenient oral dosing as advantages over current standard treatments in front-line and neoadjuvant uveal melanoma.
Several near-term catalysts over the next six months could drive significant upside for the stock, according to UBS. These include a Phase 2 readout in neoadjuvant enucleation cohort at the ESMO medical conference (October 17-21) and overall survival data in first-line metastatic uveal melanoma at the SMR medical conference (October 25-28).
The firm also highlighted pivotal Phase 3 data in first-line metastatic uveal melanoma (HLA-A2-) expected in Q4 2025 to Q1 2026 as another potential catalyst for the stock.
In other recent news, Ideaya Biosciences announced promising results from its Phase 1/2 trial for urothelial cancer treatment. The trial, which combines IDE397 with Gilead’s Trodelvy, reported a 57% overall response rate at the higher dose and 33% at the lower dose. Additionally, initial data from an early-stage trial of IDE849 for small cell lung cancer showed an 80% overall response rate, with a 70% confirmed response rate. Analysts have responded positively to these developments; Mizuho reiterated an Outperform rating with a $44 price target, while RBC Capital raised its target from $36 to $38, maintaining an Outperform rating. JMP Securities also reiterated its Market Outperform rating with a $45 price target, citing encouraging data from various clinical programs. These updates followed Ideaya’s recent R&D Day, where the company shared positive clinical updates across multiple programs. Despite this, the company’s stock experienced a decline earlier in the week, even as analysts remained optimistic about its future prospects.
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