Guggenheim Starts Kura Oncology (KURA) at Neutral

Guggenheim analyst Brad initiates coverage on Kura Oncology (NASDAQ: KURA) with a Neutral rating.

The analyst comments "We are initiating coverage of Kura Oncology, Inc. (KURA) with a Neutral rating. A Neutral rating on an ~$0 EV stock may not be a bold call, but in our view, any upside on KURA will be driven by 1L fit AML development and whether MRD- CR will become newly accepted by regulators as an accelerated approval endpoint. While we anticipate KURA’s near-term R/R NPM1m AML launch, it will be difficult to drive value with SNDX already on market for this smaller patient population. For the 1L AML segments, we think the 1L unfit AML segment may cede to SNDX and JNJ which have already started trials, but we could become more constructive on KURA if the 1L fit AML approval arrived quicker than an EFS/OS outcome with an MRD surrogate endpoint. Ultimately, we see several steps to achieving regulatory acceptance of MRD: 1) the industry (led by JNJ's MPAACT Consortium) should complete the meta-analysis to confirm for the FDA the trial-level association of MRD- CR to OS; 2) the NPM1m MRD assays should be standardized; and 3) all of this likely needs to go through an ODAC, similar to MRD for multiple myeloma in 2024. In our view, if this process unfolds, we believe there could be a higher regulatory probability of success for 1L fit AML on a surrogate endpoint. We believe KURA could also benefit more than SNDX and JNJ in this segment if KURA is the first to dose a patient and maintain enrollment pace in the planned 1L fit AML phase 3 trial. In other words, KURA could be the first menin inhibitor company to access a ~ $1bn market segment opportunity within a few short years on an accelerated endpoint. Therefore, while we are Neutral on the shares today on the first commercial launch for ziftomenib expected in 4Q25, the KURA thesis is worth actively monitoring."

For an analyst ratings summary and ratings history on Kura Oncology click here. For more ratings news on Kura Oncology click here.

Shares of Kura Oncology closed at $7.95 yesterday.

You May Also Be Interested In

• Stripe, Advent In Talks To Buy Paypal - WSJ
• Jane Street Took $15 Billion Hit In July Tied To Situational Awareness - Reuters
• Home Depot (HD) call put ratio 1.5 calls to 1 put with a focus on September 330 puts into quarter results