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On Monday, Mizuho Securities revised its stock price target for Nkarta Inc. (NASDAQ:NKTX) shares, reducing it to $20 from the previous $25, while continuing to recommend the stock as Outperform. The adjustment follows new timelines for clinical data and a reassessment of the drug candidate's probability of success.
The firm's decision is primarily influenced by a change in the expected success rate of NKX019, Nkarta's therapy for large B-cell malignancies. The probability of success (PoS) for NKX019 has been reduced to 10% from the earlier estimate of 20%. This revision comes after the company announced that results from a specific dosing cohort study in B-cell lymphoma are now anticipated in late 2024, a delay from the initially projected mid-2024.
Nkarta's press release indicates that the future development of NKX019 in non-Hodgkin lymphoma (NHL) hinges on the outcomes from seven patients currently being treated in the new cohort. Given that the study is open-label, the company receives data periodically.
Mizuho underscored that, despite the shift in expectations for NKX019, Nkarta is still viewed as having potential in the autoimmune sector with additional prospects in oncology. The company has several upcoming milestones, including the initiation of enrollment for the Ntrust-2 trial by the end of 2024. This study will investigate NKX019 in various autoimmune conditions such as systemic sclerosis, myositis, and vasculitis.
Furthermore, Nkarta is expected to release preliminary clinical data from two significant trials, Ntrust-1 and Ntrust-2, in 2025. Ntrust-1 is focusing on NKX019's efficacy in treating lupus nephritis, a serious complication of lupus.
In other recent news, biopharmaceutical company Nkarta Inc. has seen various significant developments. The company announced its second-quarter financial results for 2024, which led H.C. Wainwright to adjust its stock price target for Nkarta, reducing it to $22 from $23, while maintaining a Buy rating.
Furthermore, Raymond James upgraded Nkarta's stock from Outperform to Strong Buy, maintaining its $16.00 price target, citing the company's strong cash runway extending into late 2027 and the potential of its product, NKX019. The company has also launched a new trial for NKX019 in collaboration with Columbia University Irving Medical Center, targeting systemic lupus erythematosus.
In a strategic move to accelerate NKX019 therapy development, Nkarta announced the appointment of Nadir Mahmood as President and the promotion of David R. Shook to Chief Medical Officer, Head of Research & Development. Lastly, Nkarta received FDA clearance for Ntrust-2, another trial for NKX019, targeting systemic sclerosis, myositis, and vasculitis. These are some of the recent developments at Nkarta.
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