A bunch of Big Pharma followers might be looking to buy Mirati therapy (MRTX), according to reports sending MRTX stock close to a breakout level on Wednesday.
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Bloomberg reported on Tuesday that Mirati has attracted takeover interest ahead of a key data reading next month. Potential buyers include Pfizer (PFE), Merck (A), Bristol Myers Squibb (BMY) and AstraZeneca (AZN).
Mirati is working on several cancer treatments. But the investor’s main concern is efforts to treat non-small cell lung cancer. The company is working on a treatment for patients with the KRAS gene mutation.
Above stock market today, MRTX stock rose 11.3% to 95.85. That followed a 15.5% gain on Tuesday. Stocks almost broke out of a cup base with one buy points at 95.79, according to MarketSmith.com.
MRTX Securities: Rivals to Amgen . Approved Drugs
Mirati is working on preparing to launch adagrasib, its potential lung cancer treatment. The FDA is expected to decide whether to approve adagrasib by December 14. Also next month, Mirati will publish results of Merck’s adagrasib plus Keytruda in previously untreated lung cancer patients.
Amgenof the (AMGN) Lumakras also targets similar mutations in the KRAS gene. These mutations have a strong relationship with cancer and have historically been difficult to target. Lumakras has been on the market for over a year now.
“We think adagrasib approval is more likely, at which point the label will likely be scrutinized, as investors will compare it with Lumakras’ label to determine its competitive profile. competition of new entrants,” SVB Securities analyst Andrew Berens said in a recent report.
He has an outperform rating on MRTX stock.
Mirati declined to comment on the speculation.
A Mirati spokesperson said in an email: “We are driven by a desire to improve patient outcomes and are actively looking forward to several upcoming milestones for the company, including the ability to approved adagrasib for patients with NSCLC with the KRAS G12C mutation”.
MRTX stock has strength Relative Strength Rating of 85, according to Digital IBD. This puts the stock in the top 15% of all stocks for 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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