Mirati Inks Deal With Novartis To Evaluate Tumor Candidate

Mirati Therapeutics, Inc. (NASDAQ:MRTX) has inked a clinical collaboration agreement with Novartis AG (NVS) to evaluate the combination of the former's investigational KRAS G12C inhibitor, MRTX849, and the latter’s investigational SHP2 inhibitor, TNO155, in patients with advanced solid tumors that harbor KRAS G12C mutations.

Per the non-exclusive agreement, Mirati will sponsor the study, and both companies will oversee and share the clinical development activities costs for combined therapy. Novartis will provide TNO155 at no cost.

Shares of the company have soared 147.1% year to date compared with the industry’s growth of 3.5%.

Preclinical data have shown that the combination of a KRAS G12C inhibitor with a SHP2 inhibitor results in increased anti-tumor activity based on their complementary mechanisms of action. Per the company, the combination of MRTX849 and a SHP2 inhibitor in its non-clinical studies demonstrated a clear impact on KRAS signaling, and resulted in a significant increase in anti-tumor activity in some tumors versus either of the investigational drug alone.

Mirati believes that the collaboration will broaden its KRAS program by potentially increasing the efficacy of MRTX849 and bringing another option to patients with KRAS G12C mutations, who have conventionally exhibited resistance with other therapies.

Another company, Amgen, Inc. (NASDAQ:AMGN) has a candidate, AMG 510, which targets the KRAS G12C mutation. In June 2019, the company announced encouraging early data from a study evaluating AMG 510 at the annual meeting of American Society of Clinical Oncology (ASCO). Mirati’s shares were up almost 32% after Amgen’s promising initial data on its KRAS G12C inhibitor.

Zacks Rank and Stocks to Consider

Mirati currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) and Applied Genetics Technologies Corp. (NASDAQ:AGTC) . Both the companies carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alnylam’s loss per share estimates have narrowed from $6.90 to $6.43 for 2020 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with average beat of 8.93%.

Applied Genetics’ loss per share estimates have narrowed from $2.39 to $2.15 for 2020 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with average beat of 83.47%.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>