Kura Oncology data overhangs receding, says BofA

BofA notes that Kura Oncology (KURA) presented the full dataset of KOMET-001, its pivotal trial of menin inhibitor ziftomenib, at ASCO after the abstract disappointed. With a deeper view of the same data, the results “unsurprisingly didn’t change,” but given the opportunity to make the case for zifto, the firm still thought Kura flagged enough discriminating features on efficacy, safety, and convenience to be optimistic both near-term and longer-term, the analyst tells investors. Shares traded up yesterday following the prior night’s announcement the FDA accepted the NDA for zifto in R/R NPM1m AML with Priority Review, notes the analyst, who argues the move suggests there were concerns the agency might opt for a regular review or even issue a refusal to file letter, “underscoring how much worries about the data have weighed on sentiment.” However, with concerns declining as the company ramps up its commercial and development efforts, the firm continues to see “a compelling risk/reward profile” and maintains a Buy rating and $29 price target on Kura shares.