KURA - Kura Oncology: Balancing Act Of Promise And Pragmatism

2024-05-07 12:55:52 ET

Summary

• Kura Oncology's stock is likely to maintain a holding pattern in the near term due to lack of major clinical catalysts in 2024.
• The company's pipeline candidate, ziftomenib, has shown promising results in AML, but there is potential competition in the space.
• Kura has a strong financial position with over two years of cash and liquid assets, making them a potential takeover target.

Topline Summary and Update

When I first covered Kura Oncology ( KURA ) back in December, they were just beginning a wave of hype built on ASH data that continued into the new year, with a relatively high valuation being sustained through the first half of 2024. I based optimism on the promise of their pipeline candidate in AML, and that paid off at the time. However, we need to be prudent about the status of these biopharmas as time goes on, and it's time to reconsider whether KURA remains a "Buy" at a valuation north of $1.5 billion....

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