A number of Big Pharma suitors could be looking to buy Mirati therapy (MRTX), according to reports that put MRTX stock close to a breakout on Wednesday.
Bloomberg reported on Tuesday that Mirati has attracted takeover interest ahead of next month’s key data readout. Potential buyers include Pfizer (PFE), Merck (MRK), Bristol Myers Squibb (BMY) and AstraZeneca (AZN).
Mirati is working on several cancer treatments. But his non-small cell lung cancer efforts are noteworthy. The company is working on a treatment for patients with a mutation in the KRAS gene.
On the stock market today, MRTX stock rose 11.3% to 95.85. That came after a 15.5% pop on Tuesday. Shares narrowly broke out of a cup base with a buy point at 95.79, according to MarketSmith.com.
MRTX Stock: Rivaling Amgen’s Approved Drug
Mirati is already working on a launch preparation for adagrasib, a potential lung cancer treatment. The FDA is expected to decide whether to approve adagrasib by Christmas.
Amgen‘s (AMGN) Lumakras also targets the same mutation in the KRAS gene. These mutations are closely associated with cancer and, historically, have been difficult to target. Lumakras has been on the market for over a year now.
“We think approval of adagrasib is more likely than not, at which point the label is likely to come under intense scrutiny, as investors will compare it to the Lumakras label to determine the competitive profile of the new entrant in the market ,” SVB Securities analyst Andrew Berens said in a recent report.
He has an outperform rating on MRTX stock.
Mirati declined to comment on the speculation.
“We are driven by the desire to improve patient outcomes and are actively anticipating several important upcoming company milestones including the potential approval of adagrasib for patients with NSCLC with the KRAS G12C mutation,” said a Mirati spokesperson in an email.
MRTX stock has a strong Relative Strength Rating of 85, according to IBD Digital. This places shares in the top 15% of all stocks in terms of 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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