Prelude Therapeutics shifts focus to JAK2 and KAT6A programs

WILMINGTON, Del. - Prelude Therapeutics (NASDAQ:PRLD) announced Tuesday it will prioritize development of its mutant selective JAK2V617F JH2 inhibitor and KAT6A selective degrader programs while pausing clinical development of its SMARCA2 selective degrader programs. The company's stock has surged dramatically, with a 348.5% price return over the past six months, and is currently trading near its 52-week high of $4.22.

The precision oncology company recently executed an option agreement with Incyte Corporation for its JAK2V617F mutant selective inhibitor program targeting myeloproliferative neoplasms. The agreement includes a $35 million upfront payment, a $25 million equity investment, and potential $100 million if Incyte exercises its option. This deal comes as InvestingPro data shows Prelude's market capitalization stands at approximately $303 million, with analysts anticipating sales growth in the current year.

Prelude will continue developing its KAT6A degrader for ER+ breast cancer, with plans to advance it into clinical trials in 2026. The company believes selective degradation of KAT6A offers potential advantages over non-selective KAT6A/B inhibitors currently in clinical development.

"Our research team made significant breakthroughs in discovering highly differentiated molecules targeting clinically validated mechanisms that are positioned to enter the clinic in 2026," said Kris Vaddi, CEO of Prelude Therapeutics.

The company cited resource allocation considerations in its decision to pause SMARCA2 development, noting the complex biology and disease aggressiveness in patients with SMARCA4 deletions would require early intervention strategies beyond current resources.

Prelude also announced the departure of President and Chief Medical Officer Jane Huang. Victor Sandor, a current board member and former Chief Medical Officer of Array BioPharma, will oversee clinical development as the company advances its prioritized programs.

As of October 31, Prelude had approximately $52 million in cash, cash equivalents and marketable securities. With the additional $60 million from Incyte's upfront payment and equity investment, the company expects its cash runway to extend into 2027, potentially into the third quarter of 2028 if Incyte exercises its option. This cash position is significant as InvestingPro data reveals Prelude holds more cash than debt on its balance sheet, with a strong current ratio of 3.68, indicating liquid assets exceed short-term obligations by a healthy margin. Despite these strengths, the company appears overvalued according to InvestingPro's Fair Value assessment.

The company will release third quarter financial results on November 12.

The announcement was based on a company press release.

In other recent news, Prelude Therapeutics announced the appointment of Katina Dorton to its Board of Directors, where she will also serve as Audit Committee Chair. Dorton, with over 30 years of experience in healthcare and life sciences, previously held the position of Chief Financial Officer at NodThera and was instrumental in preparing Repare Therapeutics for its IPO. Furthermore, H.C. Wainwright has reiterated its Buy rating on Prelude Therapeutics, maintaining a price target of $5.00, citing anticipated catalysts by the end of 2025. These include the presentation of final results from a Phase 1 trial for PRT3789 in SMARCA4-mutated cancers and initial interim data from a Phase 1 trial of PRT7732. Additionally, Prelude Therapeutics has regained compliance with the Nasdaq's minimum bid price requirement, confirmed through a letter from Nasdaq on September 18, 2025. This follows a previous notification of non-compliance in March 2025. These developments mark significant progress for the company in its ongoing operations.

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