Kura slides as licensing deal seen as reducing chances of buyout

Kura Sushi

21/11/2024 15:23

(Updates)
    ** Kura Oncology's  KURA.O  shares slide 36.8% to $10.03,
hit more than 11-month low of $9.68 earlier in the session
        ** Shares set to log worst single-day percentage decline
if losses hold
  
    ** Co said late on Wednesday it will collaborate with
Japan's Kyowa Kirin  4151.T  to develop and commercialize blood
cancer therapy drug ziftomenib
    ** The collaboration "likely detracts from the near-term
potential takeout narrative, which certainly has been something
some investors had been articulating," Mizuho analysts say 
    ** Kura will lead the development of the drug, being
evaluated for treating acute myeloid leukemia, a blood and bone
marrow cancer 
    ** Cos will jointly undertake commercialization and will
equally share potential profits and losses, Kura said
    ** Kura to get upfront payment of $330 mln and up to $1.2
bln in total milestone payments as part of deal
    ** At least 4 brokerages cut PT 
    ** Including session's move, stock down 30.5% YTD


 (Reporting by Sukriti Gupta in Bengaluru)
 ((Sukriti.Gupta@thomsonreuters.com;))