Mural Oncology halts nemvaleukin trials, seeks strategic options

Published 15/04/2025, 13:10
Mural Oncology halts nemvaleukin trials, seeks strategic options

WALTHAM, Mass. - Mural Oncology plc (NASDAQ:MURA), a biotech company specializing in immuno-oncology, announced it will cease all clinical development of its drug candidate nemvaleukin alfa, following a review of phase 2 and phase 3 trial data. The announcement sent the stock to $1.03, marking a 75% decline over the past year and currently trading near its 52-week low of $0.95, according to InvestingPro data. The decision comes after the phase 2 ARTISTRY-6 trial in melanoma and the phase 3 ARTISTRY-7 trial in platinum-resistant ovarian cancer did not meet primary endpoints.

The company reported having $144.4 million in cash and equivalents as of December 31, 2024, and is now initiating a search for strategic alternatives to maximize shareholder value. InvestingPro analysis shows Mural maintains a strong current ratio of 5.84 and minimal debt of just $8.02 million, though the company is quickly burning through its cash reserves. Mural has appointed Lucid Capital Markets, LLC as its financial advisor for this process. Concurrently, Mural plans a significant reduction in its workforce by approximately 90%.

The ARTISTRY-6 trial evaluated nemvaleukin as a monotherapy in patients with mucosal melanoma. However, the trial did not achieve its primary endpoint, leading to the discontinuation of the drug’s development. Preliminary data from another cohort of the same trial, which tested less-frequent dosing in cutaneous melanoma patients, also failed to show sufficient activity to warrant continuation.

This announcement follows interim overall survival results from the ARTISTRY-7 trial, released on March 25, 2025, which also contributed to the decision to halt development. Mural is now considering various strategic options, including but not limited to, a sale, merger, business combination, or other transactions. There is no set timetable for completion of this strategic review, and no assurance can be given that this process will result in a transaction or on what terms any transaction may occur.

Mural is subject to the Irish Takeover Rules, which have certain implications for the strategic alternatives being explored. The company is not in active discussions with any potential offeror at this time.

Mural Oncology is known for its protein engineering platform used to develop cytokine-based therapies aimed at treating cancer. The company has its registered office in Dublin, Ireland, and primary facilities in Waltham, Massachusetts.

This move marks a significant shift for Mural, which will now focus on identifying the best path forward amid the discontinuation of its leading clinical program. The information for this article is based on a press release statement.

In other recent news, Mural Oncology has announced the discontinuation of its drug candidate nemvaleukin alfa for the treatment of platinum-resistant ovarian cancer (PROC) following an interim analysis that showed no statistically significant improvement in overall survival. The Phase 3 ARTISTRY-7 trial results revealed a median overall survival of 10.1 months for the nemvaleukin-pembrolizumab combination, compared to 9.8 months for chemotherapy alone. Despite this setback, Mural Oncology continues to focus on its upcoming ARTISTRY-6 trial, which is evaluating nemvaleukin in mucosal melanoma, with top-line results expected in the second quarter of 2025.

Analysts have adjusted their outlooks in light of these developments. H.C. Wainwright cut its price target for Mural Oncology shares to $6 from $18 but maintained a Buy rating, expressing cautious optimism about the drug’s potential in melanoma. Raymond James downgraded the stock from a ’Strong Buy’ to ’Outperform’ and also reduced its price target to $6. Morgan Stanley shifted its rating to ’Equal-weight’ from ’Overweight’, setting a new valuation range of $1 to $3, reflecting a recalibrated outlook on nemvaleukin’s future.

Jones Trading also downgraded Mural Oncology from Buy to Hold, advising investors to wait for the stock to stabilize after the PROC program setback. Despite these changes, Mural Oncology’s financial position remains solid, with $144.4 million in cash, cash equivalents, and marketable securities reported at the end of the previous year. Investors are now keenly watching the upcoming clinical trial results in mucosal melanoma as a potential catalyst for the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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