On Monday, BTIG analyst reaffirmed a Buy rating on Ideaya Biosciences shares with a price target of $62.00, aligning with the broader Wall Street sentiment. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $27 to $65. The endorsement follows Ideaya’s recent announcement of a licensing agreement with Jiangsu Hengrui Pharma for a novel cancer treatment drug.
Ideaya Biosciences, traded on NASDAQ:IDYA with a market capitalization of $2.17 billion, disclosed on Sunday an exclusive license agreement with Jiangsu Hengrui Pharma, listed as SHA:6000276. The agreement pertains to SHR-4849, an innovative drug designed to target DLL3 in the treatment of small cell lung cancer (SCLC) and neuroendocrine solid tumors. InvestingPro analysis indicates the company maintains a Fair financial health rating, supported by strong balance sheet metrics.
Under the terms of the agreement, Ideaya will be responsible for the development and commercialization of SHR-4849 outside the Greater China region. Jiangsu Hengrui Pharma is set to receive upfront and milestone payments that could total up to $1.045 billion, in addition to royalties on net sales generated outside Greater China.
DLL3 is a recognized target that is highly expressed in approximately 85% of SCLC cases, a cancer with an estimated 33,000 patients annually in the United States alone. The licensing deal is seen as a strategic move that aligns with Ideaya’s approach to develop novel drugs. Specifically, Ideaya aims to combine topo-I ADCs with their PARG inhibitor IDE161, which may result in synergistic activity and improved efficacy.
Ideaya Biosciences plans to file a US Investigational New Drug (IND) application for SHR-4849 in the first half of 2025, as they continue to advance their oncology pipeline. The company has indicated that the financial terms of the deal with Hengrui will not significantly affect their current cash runway, which is expected to last into 2028. This outlook is supported by InvestingPro data showing the company’s impressive current ratio of 22.93 and minimal debt-to-equity ratio of 0.02, indicating strong financial flexibility. Get access to 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
In other recent news, Ideaya Biosciences has made significant strides in precision medicine with numerous advancements. The company’s robust pipeline was highlighted by RBC Capital, which reaffirmed its Outperform rating, emphasizing the company’s financial strength and ambitious development programs. Furthermore, Ideaya has nominated IDE251, a potential first-in-class dual inhibitor for cancer treatment, with plans to submit an Investigational New Drug application to the U.S. Food and Drug Administration in 2025.
Ideaya has also initiated a Phase 1 clinical trial for IDE161 in combination with Merck (NS:)’s KEYTRUDA for patients with endometrial cancer. The promising interim Phase 1 expansion data for IDE397, targeting MTAP-deletion urothelial cancer and non-small cell lung cancer, demonstrated a high disease control rate of 93%. However, Leerink Partners downgraded Ideaya’s stock from Outperform to Market Perform due to uncertainties in key programs.
Analysts from UBS, Cantor Fitzgerald, and Goldman Sachs have been optimistic about Ideaya’s drug candidates. UBS initiated coverage with a Buy rating, highlighting the potential of darovasertib. Goldman Sachs reaffirmed their Buy rating, estimating peak sales for darovasertib to reach $3.0 billion. Cantor Fitzgerald initiated coverage with an Overweight rating, emphasizing the potential of the company’s leading drug candidates in targeted oncology.
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