Kura to partner with Kyowa Kirin for blood cancer drug; shares fall

Kura Sushi

21/11/2024 12:31

** Kura Oncology's  KURA.O  shares slide 17% to $13.20
premarket 
    ** Co said on Wednesday it will collaborate with Japan's
Kyowa Kirin  4151.T  to develop and commercialize blood cancer
therapy drug ziftomenib
    ** 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 
    ** Jefferies cuts PT to $28 from $32
    ** Views deal as strategically favorable for KURA
    ** "While the stock M&A premium will decrease in the
near-term, the fundamental value is higher," brokerage says
    ** Avg rating of 15 brokerages is "buy"; median PT is $32 -
LSEG data
    ** As of last close, stock up 10.6% YTD


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