Kinnate Biopharma slumps on stopping development of lead drug as solo cancer therapy

Kinnate Biopharma

19/09/2023 13:34

** Shares of Kinnate Biopharma  KNTE.O  fall 12.4% to $1.49
premarket
    ** KNTE late on Monday said it will stop further clinical
development of lead cancer drug exarafenib without any
combination treatment after it showed limited anti-tumor
activity against some type of solid tumors
    ** But company sees promise in use of exarafenib in
combination with other drugs
    ** Kinnate to also reduce workforce by ~70% to cut operating
expenses and save cash reserves, which stood at ~$204.3 mln as
of June-end
    ** Jefferies says "expectation will be extremely low from
here", and that any news on partnerships and trial data in
coming months could support upside potential; slashes PT to $2
from $31
    ** 3 of 7 brokerages rate stock "strong buy", 4 "hold";
median PT is $4 - LSEG data
    ** Up to Monday's close, stock down 72% YTD

 (Reporting by Leroy Leo in Bengaluru)
 ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))