Citi boosts Ideaya Biosciences share target on pipeline progress, M&A potential
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On Thursday, Citi maintained a Buy rating on Ideaya Biosciences (NASDAQ:IDYA) and increased the price target to $60 from the previous $40. The firm attributes this adjustment to the company’s rapidly advancing pipeline, particularly highlighting the addition of IDE161, a PARG inhibitor designed for HRD solid tumors, to their valuation model.
According to Citi, Ideaya Biosciences has consistently been a top pick, and despite a year-to-date increase of 26% in share price, the potential for further growth remains. The new valuation reflects several key adjustments, including the anticipated impact of IDE161 on the company’s financial prospects.
The firm anticipates that upcoming milestones will further boost Ideaya’s stock value. These include multiple readouts for darovasertib in neoadjuvant uveal melanoma (UM) expected in mid-2024, regulatory guidance on pivotal study design in neoadjuvant UM during 2024, updates on the Phase 1/2 expansion cohorts for IDE161, and pivotal data for darovasertib in first-line metastatic UM, both scheduled for 2024.
Additionally, Citi points to the development of a joint publication strategy with Amgen (NASDAQ:AMGN), which will cover data from the highly anticipated combination cohort that evaluates IDE397 and AMG 193 in MTAP-deleted tumors. This collaboration is set to unfold in 2024, as outlined in the full catalyst calendar provided by Citi.
Citi concludes by reiterating its view that Ideaya Biosciences remains an attractive merger and acquisition (M&A) target, supported by the company’s strong pipeline and the potential for significant clinical milestones in the near future.
