On Friday, Mizuho Securities adjusted its stance on Nkarta Inc. (NASDAQ:NKTX), a biopharmaceutical company. The firm reduced the price target to $25 from the previous $31 while retaining a Buy rating on the stock. This decision followed Nkarta's announcement of its fourth-quarter earnings for 2023, which included a strategic shift in its development pipeline.
Nkarta reported that it is deprioritizing its NKX101 treatment for acute myeloid leukemia (AML) after reevaluating the clinical data. The company observed an aggregate complete response rate (CR/CRi) of 5 out of 20 patients, compared to a 4 out of 6 response rate reported during their June 2023 announcement. This reassessment led to a change in the company's focus.
According to the firm's statement, the shift in strategy is partly due to Nkarta's growing optimism regarding another of its treatments, NKX019, which is being developed for autoimmune diseases. The company's management discussed this new direction and its implications for Nkarta's future prospects.
As a result of removing NKX101 from its valuation model, Mizuho Securities has lowered the price target for Nkarta Inc. The revised target reflects the updated expectations for the company's product pipeline and market potential.
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