• Credit Suisse has raised the price target on Kura Oncology Inc KURA to $29 from $27.
  • The analysts say that evidence of an effective and tolerable agent and a clear recommended phase 2 dose for ziftomenib should support an upside of ~$8-10/share to their NPV. A topline update from Phase 1b study is expected in Q3 and detailed data in Q4.
  • Downside scenarios include an incomplete/inconclusive update that may disappoint expectations, though the scenario is unlikely.
  • Fully de-risked, Credit Suisse believes the relapsed or refractory setting might be worth ~$18/share, with expansion into the frontline setting taking the total asset value to ~$40-45/share. 
  • The analysts view ziftomenib as best-in-class potential among the menin inhibitors, as it may differentiate on tolerability/safety and allow for a more comprehensive combo strategy. 
  • With initial approval in 2025, peak sales can potentially be over $1 billion, assuming successful frontline expansion. 
  • Kura’s management has consistently said that a 20-30% CR/CRh rate with mDOR 4-6 months would likely be an approvable profile, consistent with the company’s survey/KOLs.
  • Price Action: KURA shares are up 6.15% at $19.04 during the market session on the last check Wednesday.


Source link