JPMorgan Reiterates Overweight Rating on Mirati Therapeutics (MRTX)

JPMorgan analyst Eric Joseph reiterated an Overweight rating and $94.00 price target on Mirati Therapeutics (NASDAQ: MRTX)

The analyst comments "ESMO-IO late-breaking abstracts were published this evening, including an updated look at the phase 2 KRYSTAL-7 trial (adagrasib + pembrolizumab in 1L G12C+ NSCLC). On the whole, we believe the data continue to support the regimen’s differentiated positioning relative to standard of care and are far more favorable than that of Lumakras + CPI. Specifically, we’d call out the updated ORR of 49% among evaluable patients with at least 1 scan (n=53) and the Gr3+ elevated ALT/AST rate of 8%/9%, lining up along the “clean win” scenario or better highlighted in our preview piece (see here). On the safety front, the data meaningfully derisk the combination’s liver tolerability profile, which has been a key sticking point for the Street in the wake of the Lumakras + pembro/atezo profile presented at WCLC. Assuming these data are representative of the broader 1L G12C NSCLC population, we believe the reported ORR goes a long way in supporting differentiated activity over the benchmark of pembro + chemo in KEYNOTE-189. Indeed, the abstract data hold out the prospect of improving ORR in subsequent data cuts given a reported 56% ORR among patients enrolled >6 months prior to data-cutoff with at least two scans. That said, preliminary insight on PFS and/or DoR remains a question, and we expect 6-month PFS among a subset of eligible K-7 patients to be a focus into the meeting presentation and company update on Wed, Dec 7th. These pending data points aside, we continue to see adagrasib setting up with a potential first mover advantage in the 1L G12C+ lung setting, maintaining MRTX as a strategically actionable name among targeted oncology peers."

For an analyst ratings summary and ratings history on Mirati Therapeutics click here. For more ratings news on Mirati Therapeutics click here.

Shares of Mirati Therapeutics closed at $92.75 yesterday.

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