Jefferies analyst Roger Song lowered the firm’s price target on Kura Oncology (KURA) to $28 from $32 and keeps a Buy rating on the shares after the company and Kyowa Kirin announced a global strategic collaboration to develop and commercialize ziftomenib, Kura’s selective oral menin inhibitor, being investigated for the treatment of patients with acute myeloid leukemia – AML – and other hematologic malignancies. While the firm views this deal as strategically favorable for Kura, equipping them with capital necessary to accelerate their AML franchise and supporting ziftomenib to become “the lead menin inhibitor in AML,” the firm notes that the stock’s M&A premium will decrease in the near-term. However, the fundamental value is higher with a stronger balance sheet and fully funded development in major AML settings, the analyst argues.
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