BREAKING: Stocks Fall; Oil Prices Slide
Mirati Therapeutics (MRTX) said almost half of patients responded to its lung cancer regimen, but MRTX stock crashed Tuesday as investors questioned whether it could take on traditional chemotherapy.
The biotech company tested its drug, adagrasib, in combination with Merck‘s (MRK) Keytruda in patients with non small-cell lung cancer. Across all patients, 49% responded. In comparison, the standard combo of Keytruda plus chemo leads to a 48% overall response rate, SVB Securities analyst Andrew Berens said in a report to clients.
“Ultimately, we think the data will continue to fuel speculation on whether (adagrasib) can successfully achieve a place in the (previously untreated) treatment paradigm commercially,” he said.
In midday trades on today’s stock market, MRTX stock plummeted 18.5% near 75.60.
Mirati’s adagrasib works by blocking a mutated form of the KRAS protein. The mutation is known as G12C. The KRAS protein is notably tied to lung, colon and pancreatic cancers. If approved, it would rival Amgen‘s (AMGN) Lumakras. But Lumakras can’t be combined with Keytruda due to safety concerns.
Among 53 patients who had at least one scan following treatment, 49% responded. Another six patients showed a response after a second scan.
The company also provided data for seven patients who began treatment an average of 19.3 months ago. That group had a response rate of 57%. They continued to respond to the regimen for over nine months. Of that group, two are still receiving treatment and are still responding after 18 months.
Berens kept his outperform rating on MRTX stock.
He noted the regimen appeared relatively safe. That question tends to be tricky for combination approaches when one drug might complicate another, leading to unintended side effects — a problem faced by the Lumakras/Keytruda regimen. In Mirati’s study, most of the side effects were mild to moderate. Just 4% of patients had serious side effects.
“We think the combination appears viable in the (previously untreated) setting from a safety/tolerability perspective, although the (effectiveness) appears modest at this juncture,” Berens said.
He sees peak sales of $1.7 billion for adagrasib in previously untreated patients. This is tied to about 23 per share of MRTX stock.
The news sent MRTX stock into a steep dive. Shares recently broke out of a cup base with a buy point at 95.79, according to MarketSmith.com. But shares have already triggered a sell rule. Investors should cut their losses when a stock falls 7%-8% below its entry.
Still, MRTX stock has a strong Relative Strength Rating of 95, according to IBD Digital. This puts shares in the top 5% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
YOU MAY ALSO LIKE:
Verve Therapeutics Crashes On The FDA’s Long List Of Gene-Editing Concerns
Horizon Topples After J&J Pulls Out Of Bidding War, Leaving Amgen, Sanofi
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Find The Best Long-Term Investments With IBD Long-Term Leaders
11/24/2022 Mirati Therapeutics sees its Relative Strength Rating reach the elite 90-plus level.
11/24/2022 Mirati Therapeutics sees its Relative Strength Rating reach the elite…
TikTok, the unit of Chinese tech company ByteDance with roots in short viral videos, is finding that its brand of social media can open prospects in music streaming, e-commerce, news content, games and more. (© Chris Gash)
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2022 Investor’s Business Daily, LLC. All rights reserved
