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Kura Oncology (KURA)
NASDAQ:KURA
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Kura Oncology
(NASDAQ:KURA)
Rating:47Neutral
Price Target:―
Positive Factors
Clinical Trial Success
The pivotal Phase 2 KOMET-001 trial in r/r NPM1-m AML met its primary endpoint.
Efficacy and Safety
Ziftomenib + 7+3 continue to show favorable efficacy and safety in 1L AML.
Regulatory Feedback
Kura announced they received favorable FDA feedback using MRD- to support potential accelerated approval.
Negative Factors
Financial Position
Kura shares represent an attractive investment opportunity given the recent weakness and an approximate -$80MM.
Market Sentiment
There is a notable short interest of 11.5% of the float in the company.
Kura Oncology (KURA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$552.35M
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue GrowthN/A
EPS Growth3.95%
CountryUS
Employees192
SectorHealthcare
Sector Strength43
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.66
Shares Outstanding86,574,684
10 Day Avg. Volume1,090,639
30 Day Avg. Volume1,415,017
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)1.61
Price to Sales (P/S)0.00
P/FCF Ratio5.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.27Price Target Upside272.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
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 is experiencing revenue growth, yet profitability remains a challenge with negative margins. Strong liquidity is offset by historical financial distress and high leverage. Cash flow management shows improvement, but overall financial health is impacted by ongoing losses.Income Statement
Kura Oncology showed positive revenue growth in TTM, moving from no revenues to generating income. However, margins remain negative with a net profit margin of -267.57% and an EBIT margin of -299.21%, reflecting ongoing profitability challenges common in early-stage biotech companies.45
Neutral
Balance Sheet
The company maintains strong liquidity with significant cash reserves but faces high leverage with a debt-to-equity ratio of 0.03. The equity ratio at 48.98% indicates moderate financial stability, yet the negative equity in prior years signals historical financial distress.30
Negative
Cash Flow
Kura Oncology shows a slight improvement in cash flow management with positive operating cash flow in the TTM. The free cash flow to net income ratio is strong despite negative net income, indicating efficient cash management amidst ongoing losses.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 67.99M | 53.88M | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 67.58M | 53.03M | -849.00K | -759.00K | -558.00K | -194.00K | EBIT |
| -203.44M | -193.19M | -165.80M | -140.62M | -131.82M | -92.09M | EBITDA |
| -191.20M | -169.50M | -164.96M | -139.11M | -129.71M | -91.70M | Net Income Common Stockholders |
| -181.89M | -173.98M | -152.63M | -136.07M | -129.91M | -89.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 658.19M | 727.39M | 423.96M | 437.99M | 517.96M | 633.32M | Total Assets |
| 743.76M | 760.16M | 448.94M | 456.31M | 534.05M | 647.21M | Total Debt |
| 19.35M | 16.59M | 17.20M | 14.02M | 6.88M | 14.98M | Net Debt |
| -31.91M | -207.87M | -20.12M | -37.78M | -83.80M | -310.52M | Total Liabilities |
| 379.36M | 346.52M | 51.66M | 36.03M | 27.44M | 36.31M | Stockholders Equity |
| 364.41M | 413.64M | 397.27M | -568.81M | -432.97M | -302.50M |
| Cash Flow | Free Cash Flow | ||||
| 110.55M | 133.84M | -124.99M | -110.69M | -105.70M | -72.00M | Operating Cash Flow |
| 111.23M | 134.32M | -124.82M | -110.06M | -104.55M | -69.83M | Investing Cash Flow |
| -107.66M | -101.59M | 15.56M | 32.63M | -126.83M | -99.94M | Financing Cash Flow |
| 6.19M | 154.42M | 94.78M | 38.56M | -3.44M | 469.33M |
Kura Oncology Technical Analysis
Neutral
6.24
Price Trends
6.42
Negative
7.20
Negative
11.95
Negative
Market Momentum
-0.07
Negative
50.62
Neutral
75.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURA, the sentiment is Neutral. The current price of 6.24 is above the 20-day moving average (MA) of 6.18, below the 50-day MA of 6.42, and below the 200-day MA of 11.95, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KURA.
Kura Oncology Risk Analysis
Kura Oncology disclosed 73 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 1 New Risks
1.
Our collaboration with Kyowa Kirin is important to our business. If Kyowa Kirin ceases development efforts under our collaboration agreement, or if our collaboration agreement is terminated, we may not receive future milestone payments or royalties under the agreement and our business could be adversely affected. Q4, 2024
Kura Oncology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $5.14B | 3.06 | -43.57% | 2.81% | 16.81% | -0.12% | |
52 Neutral | $529.20M | ― | -29.16% | ― | 25.77% | 49.44% | |
50 Neutral | $350.05M | ― | -30.11% | ― | 15.32% | 15.73% | |
49 Neutral | $656.37M | 53.85 | -4.52% | ― | 92.31% | 78.17% | |
47 Neutral | $552.35M | ― | -41.84% | ― | ― | 3.95% | |
45 Neutral | $738.37M | ― | -119.66% | ― | ― | -551.08% | |
44 Neutral | $406.65M | ― | -216.14% | ― | 203.23% | -80.71% |
* Healthcare Sector Average
Performance Comparison
KURA
Kura Oncology
6.24
-15.19
-70.88%
MGTX
Meiragtx Holdings
5.06
-0.08
-1.56%
IMTX
Immatics
5.20
-4.62
-47.05%
BFLY
Butterfly Network
2.14
1.11
107.77%
NNOX
Nano-X Imaging
5.24
-3.35
-39.00%
NUVB
Nuvation Bio
2.25
-0.83
-26.95%
Kura Oncology Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -3.85%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including a significant NDA submission, strong financial stability, and progress in clinical trials. However, these were counterbalanced by increased R&D expenses, a notable net loss, and challenges in clinical trial response rates.Q1-2025 Updates
Positive Updates
NDA Submission for Ziftomenib
Kura Oncology submitted a New Drug Application (NDA) for ziftomenib, their investigational menin inhibitor, as a monotherapy for relapsed or refractory NPM1-mutant AML. This marks a significant milestone in their clinical development efforts.
Strong Financial Position
Kura reported having $703.2 million in cash, cash equivalents, and short-term investments as of March 31, 2025. This financial stability is further supported by a $45 million milestone payment under their collaboration agreement with Kyowa Kirin.
Progress in Clinical Trials
Ziftomenib's Phase 2 registrational data were accepted for presentation at the ASCO Annual Meeting. Additionally, robust enrollment continues in the KOMET-007 and 008 studies evaluating ziftomenib in combination with various standards of care.
Farnesyl Transferase Inhibitor (FTI) Program Development
Kura's FTI program is advancing with plans to share preliminary clinical data from multiple Phase 1 cohorts later this year, highlighting the potential of FTIs in combination therapies.
Appointment of Senior Vice President
Samir Vattompadam joined Kura's leadership team as Senior Vice President, Global Program Leadership, bringing over 20 years of experience in the biotech and pharmaceutical industry.
Negative Updates
Increased Research and Development Expenses
R&D expenses for Q1 2025 were $56 million, up from $36.3 million in Q1 2024. This increase reflects higher costs associated with advancing the company's pipeline.
Net Loss for Q1 2025
Kura reported a net loss of $57.4 million for Q1 2025, compared to a net loss of $49.5 million in Q1 2024. This includes non-cash, share-based compensation expenses.
Challenges in Achieving High Response Rates in Trials
In the discussion of the 7+3 combo in the KOMET-007 trial, the company noted the difficulty in maintaining high response rates seen in previous trials, highlighting the challenge in achieving deeper responses.
Company Guidance
During Kura Oncology's Q1 2025 conference call, the company outlined significant milestones achieved and future guidance. Kura submitted a New Drug Application (NDA) for ziftomenib as a monotherapy in relapsed/refractory NPM1-mutant acute myeloid leukemia (AML) and requested priority review, which could lead to a six-month FDA review period. The company reported cash, cash equivalents, and short-term investments of $703.2 million on a pro forma basis as of March 31, 2025, including a $45 million milestone payment from its Kyowa Kirin collaboration. Anticipated near-term milestones could bring an additional $375 million. Kura plans to present ziftomenib Phase 2 data at the ASCO Annual Meeting and is advancing its FTI program with preliminary data from multiple Phase 1 cohorts expected later this year. Furthermore, the company has initiated patient dosing for a Phase 1 trial of ziftomenib in combination with imatinib for advanced gastrointestinal stromal tumors (GIST). With a strategic focus on becoming a fully integrated organization, Kura is well-positioned to advance its pipeline and achieve critical value inflection points.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.