Mirati Therapeutics (NASDAQ:MRTX) prices its public offering of 4,350,176 shares of common stock at $5.60. In addition, the company is offering funds affiliated with Boxer Capital, LLC pre-funded warrants to purchase up to 7,258,263 common shares at $5.599 per warrant. Gross proceeds should be ~$65M.
Underwriters over-allotment is an additional 652,526 common shares. Closing date is January 11.
Net proceeds will be used for general corporate purposes.
Shares are down 3% premarket but only on turnover of 600. Yesterday's close was $5.90.
Sarepta Therapeutics (NASDAQ:SRPT) upgraded to Outperform from Neutral by Wedbush. Price target raised to $36 (71% upside) from $14.
EnteroMedics (NASDAQ:ETRM) downgraded to Neutral from Buy by Roth Capital Partners. Price target is $0.50 (11% upside).
Relypsa (NASDAQ:RLYP) downgraded to Underweight from Equal Weight by Morgan Stanley. Price target maintained at $9 (52% downside risk).
Mirati Therapeutics (NASDAQ:MRTX) downgraded to Hold from Buy by Jefferies. Price target lowered to $17 (77% upside) from $27.
AbbVie (NYSE:ABBV) downgraded to Market Perform from Outperform by Cowen & Company. Price target lowered to $70 (15% upside) from $77. Downgraded to Equal Weight from Overweight by Morgan Stanley. Price target lowered to $65 (7% upside) from $73.
WebMD (NASDAQ:WBMD) downgraded to Market Perform from Outperform by William Blair.
Thinly traded micro cap Mirati Therapeutics (MRTX -40.1%) plummets in early trading on a 6x surge in volume in response to its update on its clinical trials. The company reported results from a Phase 1b study evaluating lead product glesatinib, a tyrosine kinase inhibitor that selectively targets certain genetic profiles of lung cancer patients called MET and Axl, in 22 subjects with non-small cell lung cancer (NSCLC).
11 of the 22 participants had genetic driver alterations similar to the selection criteria for the company's ongoing Phase 2 study. Tumor regression was observed in 10 of the 11 (90.9%), but only three (27.3%) were partial responders pre RECIST criteria.
Side effects appeared to be a problem, however. Nine of the 11 subjects (81.8%) experienced dose reductions and or dose interruptions. Four of the nine experienced one reduction, two had two reductions and three had multiple reductions while on study. Eight of the subjects are no longer on trial: five discontinued due to disease progression, two related to adverse events and one withdrew consent. The dose reductions were due primarily to episodes of diarrhea. According to the company, the likely culprit was the presence of a castor oil-like ingredient in glesatinib's formulation called miglyol.
To address the problem, a new spray-dried dispersion formulation of glesatinib is being implemented in the Phase 2 study. One partial responder who moved to the new formulation has shown an improved response and remains on study but at a dose of 500 mg twice daily, lower that the established dose of 750 mg twice daily. According to clinicaltrials.gov, the estimated final data collection date for the primary endpoint is July 2017. The estimated study completion date is July 2018.