Stifel upgraded Ideaya Biosciences (IDYA) to Buy from Hold and raised its price target to $24.00 from $18.00 on increased conviction in the Darovasertib 1L MUM opportunity.
Shares jumped more than 35% today after the company announced positive interim Phase 2 data for Darovasertib and Crizotinib combination and a successful FDA Type C meeting.
According to Stifel, the data revealed an improved mPFS in 1L metastatic patients and it believes there’s precedence for strong pricing power in this setting, and that each additional month of use is therefore likely to have a material impact on sales perceptions.
The firm believes that the sales of Immunocore's (NASDAQ:IMCR) KIMMTRAK in a subset of MUM has helped validate this market, and the mPFS of daro+crizo now at 7 months suggests that Ideaya's MUM program could yield a market opportunity of $389 million in the US alone if fully de-risked.
The firm believes the market is undervaluing darovasertib, and heavily discounting the non-daro pipeline.