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Kura Oncology (KURA)
NASDAQ:KURA
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Kura Oncology
(NASDAQ:KURA)45Neutral
Positive Factors
Financial Stability
The zifto franchise is fully funded in 1L, suggesting financial stability and capacity for continued development.
Regulatory Progress
Kura obtained regulatory alignment for the KOMET-017 pivotal trials, which evaluate ziftomenib in combination with other treatments for AML, showing regulatory progress.
Negative Factors
Operating Costs
R&D expenses were higher than both the analyst's and consensus estimates, indicating increased operating costs.
Kura Oncology (KURA) vs. S&P 500 (SPY)
Market Cap
$621.81M
Dividend YieldN/A
Average Volume (3M)1.61M
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue GrowthN/A
EPS Growth2.90%
CountryUS
Employees142
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.02
Shares Outstanding80,754,960
10 Day Avg. Volume1,264,298
30 Day Avg. Volume1,609,268
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.54
Price to Cash Flow (P/CF)0.60
P/FCF Ratio0.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.25Price Target Upside248.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Kura Oncology Business Overview & Revenue Model
Company DescriptionKura Oncology, Inc. (KURA) is a biopharmaceutical company focused on the discovery and development of precision medicines for the treatment of cancer. The company is involved in the research and development of small molecule drug candidates primarily targeting genetically defined patient populations. Its core products include tipifarnib, ziftomenib, and KO-2806, which are in various stages of clinical trials for different types of cancer, such as acute myeloid leukemia and other solid tumors.
How the Company Makes MoneyKura Oncology generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company finances its operations through public offerings, partnerships, and collaborations with other pharmaceutical companies. Kura's earnings are significantly influenced by milestone payments and potential royalties from licensing agreements as its drug candidates progress through clinical trials and, if successful, receive regulatory approval. Additionally, the company may engage in strategic partnerships to co-develop or out-license its therapies, which can provide upfront payments and shared revenue streams from eventual product sales.
Kura Oncology Financial Statement Overview
Summary
Kura Oncology shows improved financial performance with significant revenue growth and positive cash flow in 2024. While the strong cash position and improved equity are strengths, persistent operational losses and past negative equity pose risks.Income Statement
Kura Oncology has shown a significant increase in revenue in 2024, reaching $53.88 million from $0 in previous years, indicating a positive development. However, the company continues to operate at a loss, with negative EBIT and net income margins. The high operating expenses relative to revenue suggest challenges in achieving profitability.30
Negative
Balance Sheet
The company's balance sheet shows a healthy cash position with $727.395 million in cash and short-term investments, which is a strength. However, the debt-to-equity ratio is concerning due to negative stockholders' equity in previous years, although it improved to positive equity in 2024. The equity ratio has improved but still indicates potential risk.45
Neutral
Cash Flow
Kura Oncology has significantly improved its cash flow, with a positive operating cash flow of $134.317 million and free cash flow of $133.845 million in 2024. This reflects effective cash management and potential for future investment. The company has turned around from negative cash flows in prior years, indicating a positive trajectory.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 53.88M | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 53.88M | -849.00K | -759.00K | -558.00K | -194.00K | EBIT |
| -193.19M | -165.80M | -140.62M | -131.82M | -92.09M | EBITDA |
| -169.50M | -164.96M | -139.11M | -129.71M | -91.70M | Net Income Common Stockholders |
| -173.98M | -152.63M | -136.07M | -129.91M | -89.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 727.39M | 423.96M | 437.99M | 517.96M | 633.32M | Total Assets |
| 760.16M | 448.94M | 456.31M | 534.05M | 647.21M | Total Debt |
| 9.68M | 17.20M | 14.02M | 6.88M | 14.98M | Net Debt |
| -214.78M | -20.12M | -37.78M | -83.80M | -310.52M | Total Liabilities |
| 346.52M | 51.66M | 36.03M | 27.44M | 36.31M | Stockholders Equity |
| 413.64M | 397.27M | -568.81M | -432.97M | -302.50M |
| Cash Flow | Free Cash Flow | |||
| 133.84M | -124.99M | -110.69M | -105.70M | -72.00M | Operating Cash Flow |
| 134.32M | -124.82M | -110.06M | -104.55M | -69.83M | Investing Cash Flow |
| -101.59M | 15.56M | 32.63M | -126.83M | -99.94M | Financing Cash Flow |
| 154.42M | 94.78M | 38.56M | -3.44M | 469.33M |
Kura Oncology Technical Analysis
Negative
7.53
Price Trends
8.06
Negative
11.25
Negative
15.80
Negative
Market Momentum
-0.26
Positive
41.00
Neutral
39.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURA, the sentiment is Negative. The current price of 7.53 is below the 20-day moving average (MA) of 7.97, below the 50-day MA of 8.06, and below the 200-day MA of 15.80, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KURA.
Kura Oncology Risk Analysis
Kura Oncology disclosed 72 risk factors in its most recent earnings report. Kura Oncology reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kura Oncology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $39.33M | ― | 60.38% | ― | 16.15% | 59.81% | |
45 Neutral | $621.81M | ― | -42.91% | ― | ― | 2.90% | |
42 Neutral | $15.11M | ― | -151.46% | ― | -95.23% | -325.89% | |
37 Underperform | $83.25M | ― | -155.76% | ― | 57.64% | 26.89% |
* Healthcare Sector Average
Performance Comparison
KURA
Kura Oncology
7.53
-15.29
-67.00%
AFMD
Affimed
0.99
-4.39
-81.60%
FGEN
FibroGen
0.37
-1.34
-78.36%
IGMS
IGM Biosciences
1.32
-9.13
-87.37%
Kura Oncology Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -3.09% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment, driven by significant advancements in clinical trials, regulatory progress, and a strong financial position, despite increased expenses and ongoing net losses.Highlights
Positive Top-Line Results from KOMET-001
The Phase 2 registration-directed trial of ziftomenib in patients with relapsed/refractory NPM1-mutant AML achieved its primary endpoint, consistent with a targeted 20% to 30% CR/CRh rate, and the safety profile was consistent with prior reports.
Regulatory Progress for Ziftomenib
Alignment with FDA and EMA on potential pathways for accelerated approval in the US and Europe for ziftomenib in frontline AML, with plans for NDA submission in Q2 2025.
Strong Financial Position
Cash, cash equivalents, and short-term investments of $727.4 million as of December 31, 2024, expected to fund operations into 2027.
Collaboration Revenue Boost
Collaboration revenue from Kyowa Kirin partnership was $53.9 million for Q4 2024, compared to none in the corresponding quarter of 2023.
Future Prospects in Diabetes
Plans to nominate a next-generation menin inhibitor development candidate for use in diabetes in mid-2025, based on promising preclinical data.
Lowlights
Increased Operating Expenses
Research and development expenses increased to $52.3 million in Q4 2024 from $32.5 million in Q4 2023, and general and administrative expenses increased to $24.1 million from $14.2 million in the same period.
Net Loss Despite Revenue Increase
Net loss for Q4 2024 was $19.2 million, down from $42.8 million in Q4 2023, indicating that despite increased revenue, the company is still not profitable.
Long Timeline for Key Results
Top-line results for the MRD-negative CR accelerated endpoint in the intensive chemotherapy setting for KOMET-017 are not anticipated until 2028.
Company Guidance
During the Kura Oncology Q4 2024 Financial Results Conference Call, the company provided guidance on several key metrics and milestones for its ziftomenib program. Kura plans to submit its first New Drug Application (NDA) for ziftomenib in Q2 2025, targeting relapsed/refractory NPM1-mutant Acute Myeloid Leukemia (AML). The company is preparing for the commercial launch of ziftomenib, expecting it to be a leading menin inhibitor in this market. Kura has aligned with both the U.S. FDA and the European Medicines Agency on pathways for accelerated approval of ziftomenib in frontline AML. Top-line results for the MRD-negative CR accelerated endpoint in intensive chemotherapy settings are anticipated in 2028. Financially, Kura ended 2024 with $727.4 million in cash, bolstered by a $330 million upfront payment from its Kyowa Kirin partnership, which will support their ziftomenib AML program through commercialization in the U.S. frontline setting. The company also achieved a net loss of $19.2 million in Q4 2024, an improvement from the $42.8 million loss in the same quarter of 2023.Kura Oncology Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Kura Oncology Announces Leadership Changes and Appointments
Neutral
Jan 6, 2025
Stephen Dale, M.D. resigned as Chief Medical Officer of Kura Oncology to focus on personal health, leading to a settlement agreement entitling him to compensation and extended stock option exercise periods. Following his resignation, Kura Oncology appointed Mollie Leoni, M.D. as Chief Medical Officer and Francis Burrows, Ph.D. as Chief Scientific Officer, indicating a strategic leadership change.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.