Mirati slips as brokerages bearish on experimental cancer drug data

Mirati Therapeutics

08/12/2022 15:32

** Shares of cancer drug developer Mirati Therapeutics Inc
 MRTX.O  fall 9.6% to $44.8
    ** Multiple brokerages slash PT on Mirati after co late on
Monday reported data on experimental drug adagrasib, which was
used in combination with Merck & Co Inc's  MRK.N  immunotherapy
Keytruda's in treating a type of lung cancer 
    ** BMO Capital downgrades MRTX to "market perform" from
"outperform", says the combination therapy might have improved
efficacy but path towards late-stage trials is long, expensive
and challenging 
    ** MRTX is likely dead money until late-stage data is out
and possibility for an acquisition is likely off the table for
now, BMO says and halves co's PT to $59 
    ** MRTX was recently attracting fresh takeover interest from
a large pharma co's ahead of updates to its drug pipeline
    ** Piper Sandler downgrades PT to $84 from $110; says co's
trials safety remains solid but efficacy benefit still debatable
    ** SVB Securities cuts PT to $85 from $102
    ** BofA Global Research sees trial data to not help derisk
the combination therapy for future late-stage lung cancer trial
registration  requirements, cuts co's PT to $61 from $100
    ** Including session's fall, MRTX down ~69% YTD
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))