Clinical-stage biotechnology company Mirati Therapeutics (NASDAQ:MRTX) has received the U.S. Food and Drug Administration’s (FDA) accelerated approval for Krazati (adagrasib), a metastatic non-small cell lung cancer (NSCLC) drug. MRTX stock rallied 10% in Tuesday’s pre-market trading. Krazati is expected to compete against Amgen’s (AMGN) Lumakras (sotorasib), which was approved last year.
Mirati’s Krazati has been approved for treating adult patients with advanced lung cancer, as determined by an FDA-approved test, who have received at least one prior systemic therapy. As per Reuters, Mirati will sell Krazati at a price of $19,750 for a 200 milligram tablet/180 count bottle.
Mirati CEO David Meek stated, “The FDA approval of KRAZATI is a positive development for thousands of patients with KRASG12C mutations, including the approximately 14% of patients with NSCLC adenocarcinomas histology that harbor a KRASG12C mutation.”
Mirati stock has plunged over 55% since December 5 as the early data from studies of Krazati (adagrasib) in combination with Merck’s (MRK) immunotherapy drug Keytruda as an initial treatment for metastatic NSCLC failed to impress analysts and investors. Interestingly, BMO Capital, Citigroup, and JP Morgan downgraded MRTX stock in reaction to the early data released by the company.
Is MRTX Stock a Buy?
Wall Street is cautiously optimistic about MRTX stock, with a Moderate Buy consensus rating based on six Buys and seven Holds. The average Mirati stock price target of $81.62 suggests 97.1% upside potential.
