Mirati Therapeutics initiated with an Underperform at Scotiabank

Scotiabank analyst George Farmer initiated coverage of Mirati Therapeutics with an Underperform rating and $20 price target. The analyst thinks the market opportunity for Mirati’s lead asset, adagrasib, is much more limited than implied by Street estimates. The firm sees the market shrinking as a better understanding and awareness grows of bypass mutations in KRAS and other proteins that predict lack of G12C inhibitor response.