Justin Zelin, an analyst from BTIG, maintained the Buy rating on IDEAYA Biosciences. The associated price target is $62.00.
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Justin Zelin has given his Buy rating due to a combination of factors that highlight IDEAYA Biosciences’ promising financial and strategic position. The recent partnership with Servier, a notable player in the precision oncology space, is a significant positive development for IDEAYA. This collaboration involves Servier taking charge of the development and commercialization of darovasertib outside the United States, providing IDEAYA with an upfront payment of $210 million, along with potential regulatory and commercial milestone payments totaling $310 million, and double-digit royalties on net sales.
These deal terms are favorable for IDEAYA as they not only extend the company’s cash runway into 2030 but also validate the clinical and commercial potential of darovasertib in uveal melanoma. Additionally, retaining U.S. rights allows IDEAYA to focus on domestic opportunities while benefiting from Servier’s expertise in global markets. The upcoming R&D Day is expected to provide further insights into the company’s pipeline and strategic direction, reinforcing the positive outlook on IDEAYA’s stock.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $43.00 price target.