Mirati Therapeutics, Inc. [NASDAQ: MRTX], a leader among the biopharmaceutical companies jumped incredibly on Monday. The shares of the biotechnology company shot up to become the top gainer in the stock market according to Yahoo Finance data. The spike has been directly linked to a presentation by Amgen [NASDAQ: AMGN]; the biopharmaceutical industry behemoth. In the report Amgen presented impressive data from a new drug candidate that is similar to one that Mirati is currently working on.
The investors of Mirati reacted by increasing their positions and pushing the stock upwards to the extent of closing the trading on Moday with gains of 31.58% with a relative change of +21.41. MRTX closed the trading on the same Monday at $89.20 compared to the previous close of $67.79. Mirati Therapeutics, Inc. shares ranged between $84.49 and $96.46 where 4,796,702 shares changed hands. The company has a market capitalization of $3.215 billion and has an EPS (TTM) of -3.84. MRTX is currently trading above the 1-year estimated target of $81.46 which means there is a high chance of a pullback from the recent highs.
Investors of Mirati were particularly impressed and encouraged keeping in mind that the firm’s lead candidate, sitravatinib failed to deliver results last year as it was expected. Yahoo Finance records that Mirati “is depending heavily on a candidate licensed from Array Biopharma (NASDAQ: ARRY) called MRTX849. This is a small-molecule drug that stops mutated KRas proteins from signaling for rapid growth and cell division.”
Many investigations and trials have for a long time tried to inhibit out-of-control KRas proteins from aiding tumor growth, however, there has never been a breakthrough due to the fact that the protein brings forth a target that is not easy to reach. There was another drug developed by straZeneca and Ionis Pharmaceuticals but it was not successful. It failed its initial human proof-of-concept study. A situation that sent jitters among investors who thought that the entire KTas class was doomed.
Mirati stock gained momentum following the report on Amgen’s KRas inhibitor referred to as AMG 510 that indicated great performance, in turn, suggesting that Mirati is in the right direction too. The results showed that AMG 510 assisted in shrinking of tumors for five out of a group of 10 lung cancer patients in addition to 13 out of 18 of the patients with colorectal cancer. It is essential to note that these patients had relapsed after going through a wringer that contained at least a couple of rounds of the standard treatment.
Since inception, Mirati has not had any past success it can boast of. However, the firm that founded Mirati, Array Biopharma, takes pride in discovering several cancer treatments. Besides, Array Biopharma reported that recently that it had come up with a drug that has the ability to inhibit difficult targets with extreme specificity.