Analyst Charles Zhu of LifeSci Capital maintained a Buy rating on IDEAYA Biosciences, retaining the price target of $58.00.
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Charles Zhu has given his Buy rating due to a combination of factors that highlight IDEAYA Biosciences’ strategic positioning and financial strength. The company has successfully out-licensed ex-US development and commercial rights for its lead asset, darovasertib, to Servier, securing significant upfront and milestone payments. This deal not only provides IDEAYA with non-dilutive capital but also shares the costs of three critical Phase 3 trials, enhancing its financial flexibility and extending its cash runway into 2030.
Additionally, the partnership with Servier, a well-regarded entity in the oncology space, is expected to positively impact IDEAYA’s cash position by approximately $400 million. This financial boost allows the company to invest in other promising programs like MTAP and DLL3. The timing and structure of the deal also mitigate risks associated with upcoming data disclosures for darovasertib, further supporting the Buy rating. Overall, these strategic moves position IDEAYA favorably for future growth and development.