JPMorgan analyst Anupam Rama says Mirati Therapeutics (MRTX +1%) may experience volatility related to Amgen's (AMGN +0.5%) fortunes with pipeline candidate AMG 510, in early-stage development for certain types of cancer.
AMG 510 is covalent inhibitor of KRAS, an oncogene that acts as an on/off switch in cell signaling, specifically controlling proliferation. When mutated, cells continuously proliferate which is characteristic of cancer. Specifically, it binds to a KRAS mutant called G12C, present in ~14% of non-small cell lung cancers and ~5% of colorectal cancers. A 60-subject Phase 1 clinical trial is currently recruiting participants. The estimated primary completion date is August 2020.
Mirati is also developing a KRAS G12C inhibitor called MRTX849, currently in IND-enabling studies (once an IND is filed and approved by the FDA clinical trials may commence).
For what it is worth, Mr. Rama speculates that MRTX could jump 5 - 30% if AMG 510 demonstrates response rates in the 40 - 80% range but may sell off 10 - 25% if the response rates are only 20 - 30%.
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