Tuesday - Stifel, a financial services firm, has raised its stock price target for Ideaya Biosciences (NASDAQ:IDYA) shares to $68.00, up from the previous $63.00, while maintaining a Buy rating. The adjustment reflects the firm's optimistic view on the potential of the company's drug combination involving IDE397 and AMG193 for treating cancer.
The focus is on the combination of IDE397 (MAT2A) and AMG193 (MTA-cooperative PRMT5), which is believed to attract significant investor attention, especially considering the limitations of the original PRMT5 inhibitors. These initial inhibitors were associated with considerable toxicity in the blood and bone marrow, and a therapeutic window could not be established.
To overcome this, a new class of MTA-cooperative inhibitors has been developed. These inhibitors work by binding and inhibiting PRMT5 when the metabolite MTA is present. Tumor cells with MTAP gene defects are expected to have elevated MTA levels, making them susceptible to second-generation PRMT5 inhibitors.
Despite the improved safety profile of these new inhibitors, the efficacy observed has been modest. Stifel's analysis suggests that cancer cells may find ways to circumvent MTA buildup caused by MTAP deletion, which could limit the effectiveness of second-generation PRMT5 inhibitors as a standalone treatment.
The firm posits that the addition of IDE397 to the treatment regimen could help mitigate these resistance mechanisms and enhance the overall efficacy of the drug combination.
Stifel remains positive on the prospects for the combined drug data to surpass current expectations set by monotherapy results. The anticipation of this improved efficacy is the driving force behind the increased price target for Ideaya Biosciences.
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