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Mirati Therapeutics Stock Has Delivered Solid Growth in 2018

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MRTX’s performance

On November 21, Mirati Therapeutics (MRTX) stock closed at $40.24, a ~2.57% fall from its previous day’s close of $41.30. Mirati stock rose from $18.25 at the close of market on December 29, 2017, to $40.24 at the close of market on November 21, 2018, reflecting ~120% year-to-date growth.

On November 21, Mirati stock closed at $40.24, a rise of ~162% from its 52-week low of $15.35 on December 12, 2017. Mirati Therapeutics hit a 52-week high of $65.35 on July 31.

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Recent developments

In November, Mirati Therapeutics presented the preliminary biomarker data from the ongoing Phase 2 clinical trial of its sitravatinib and Bristol-Myers Squibb’s Opdivo combination therapy. Mirati Therapeutics is conducting the Phase 2 trial of the sitravatinib and Opdivo combination therapy for the evaluation of its safety and efficacy in the treatment of non-small cell lung cancer.

The preliminary data showed an increased rate of durable response compared to what is expected from docetaxel therapy, which is the present standard-of-care therapy for patients who have experienced disease progression after a previous treatment with a checkpoint inhibitor. The success of the Phase 2 clinical trial will help Mirati proceed to a further clinical trial in a large patient population.

Financials in a nutshell

Mirati Therapeutics’ net revenue in the first nine months of the year amounted to $9.4 million. Mirati Therapeutics’ research and development and general and administrative expenses in the first nine months of the year rose to $67.1 million and $15.3 million, respectively, from $42.8 million and $10.5 million, respectively, in the same period of the previous year.

Mirati Therapeutics’ net income and diluted EPS in the first nine months of the year amounted to $70.1 million and $2.31, respectively, compared to its net income and diluted EPS of $52.5 million and $2.12, respectively, in the same period of the previous year.

Analysts’ recommendations for MRTX and its peers

Of the nine analysts tracking Mirati Therapeutics in November, three have recommended “strong buys,” while five have recommended “buys” on the stock. One analyst has recommended a “hold” on Mirati Therapeutics in November.

Of the seven analysts tracking Iovance Biotherapeutics (IOVA), all of them have recommended “buys,” and among the eight analysts tracking Immunomedics (IMMU), all of them have recommended “buys.”

On November 22, Mirati Therapeutics, Iovance Biotherapeutics, and Immunomedics had consensus 12-month target prices of $64.88, $30.29, and $37.38, respectively, representing potential returns on investment of ~61.23%, ~235.81%, and ~99.89%, respectively, over the next 12 months.

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