Mirati surges after upsized equity raise, CEO departure, lung cancer drug update

Mirati Therapeutics

09/08/2023 18:03

** Shares of Mirati Therapeutics  MRTX.O  surge 30.0% to
$36.14 on Weds after follow-on prices, co announces CEO
departure and Q2 results
    ** MRTX on course for biggest one-day pct advance since Jun
2022
    ** Mirati early Weds sold ~10.8 mln shares, including ~1.1
mln pre-funded warrants, at $27.80 for $300 mln raise
    ** Offering size boosted from $250 mln targeted upon launch
late Tues
    ** After the bell Tues, Mirati said David Meek and it agreed
for Meek to step down from CEO role and remain as consultant to
co through Oct 15
    ** Former CEO, founder Charles Baum acting as interim chief
as co conducts search for permanent CEO
    ** In addition, co reported Q2 sales of $13.4 mln for
Krazati, its oral drug to treat non-small cell lung cancer
patients
    ** TD Cowen in note said Krazati sales were above consensus
view of $10.7 mln, adding that q/q growth (from $6.3 mln in Q1)
in line with co's expectations for a more linear early launch
    ** Avg rating among 20 analysts covering MRTX is "buy" and
median PT is $51, per Refinitiv data
    ** With move on the session, MRTX cuts YTD loss to ~20%

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))