Mirati therapy (MRTX) said nearly half of its patients have responded to a lung cancer regimen, but MRTX stock tumbled on Tuesday as investors questioned whether it could take on traditional chemotherapy. or not.
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The biotech company tested their drug, adagrasib, in combination with Merckof the (A) Keytruda in patients with non-small cell lung cancer. Across all patients, 49% responded. By comparison, the standard combination of Keytruda plus chemotherapy resulted in an overall response rate of 48%, SVB Securities analyst Andrew Berens said in a note to clients.
“Ultimately, we think the data will continue to fuel speculation about whether (adagrasib) can successfully earn a place in the (previously untreated) treatment paradigm in terms of treatment,” he said. commercial or not”.
In premarket transactions on stock market todayMRTX shares plummeted 16% to nearly 77.90.
MRTX Stock: Blocking Protein KRAS
Mirati’s adagrasib works by blocking a mutated form of the KRAS protein. The mutation is called G12C. The KRAS protein is significantly associated with lung, colon, and pancreatic cancers. If approved, it will compete Amgenof the (AMGN) Lumakras. But Lumakras cannot be combined with Keytruda due to safety concerns.
Of the 53 patients who had at least one scan after treatment, 49% responded. Another six patients showed a response after the second scan.
The company also provides data on seven patients who started treatment an average of 19.3 months ago. That group had a response rate of 57%. They continued to respond to the regimen for more than nine months. Of that group, two were still receiving treatment and were still responding at 18 months.
Berens maintains its outperformance rating on MRTX stock.
He notes that this mode seems relatively safe. That question tends to be difficult for combination approaches where one drug can complicate another, leading to unintended side effects – an issue faced by the Lumakras/Keytruda regimen . In the Mirati study, most side effects were mild to moderate. Only 4% of patients had serious side effects.
“We think this combination seems feasible in the (previously untreated) setting from a safety/tolerance perspective, although (effectiveness) appears modest at this time,” Berens said. this moment”.
He saw peak revenue of $1.7 billion for adagrasib in previously untreated patients. This is tied to about 23 per share of MRTX stock.
Mirati stock is highly appreciated
The news sent MRTX stock plummeting. Stock recently broke a cup base with one buy points at 95.79, according to MarketSmith.com. But the stock triggered the sell rule. Investors should cut their losses when a stock is down 7%-8% from its entry.
However, MRTX stock has strength Relative Strength Rating of 95, according to Digital IBD. This puts the stock in the top 5% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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