Shares of Mirati were down 8% in after-market trading on May 24, 2023 after management announced that the phase III SAPPHIRE study did not achieve its primary endpoint of overall survival (“OS”).

However, Mirati did not disclose any study data along with the above announcement. Management intends to do so at a future date.

The SAPPHIRE study is evaluating the combination of sitravatinib plus Bristol Myers’ (BMY Quick QuoteBMY - Free Report) Opdivo (nivolumab) in patients with second or third line advanced non-squamous non-small cell lung cancer (“NSQ-NSCLC”) who progressed on prior therapy with chemotherapy and immune checkpoint inhibitor therapy.

Management also provided principal investigators with the option to continue treatment with sitravatinib-Opdivo combination in patients who are experiencing clinical benefit and would like to remain on treatment.

In the year so far, Mirati’s shares have declined 3.3% compared with the industry’s 7.5% fall.

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The SAPPHIRE study is part of a clinical collaboration entered between Mirati and Bristol Myers in 2019. Per the agreement terms between the companies, Mirati is responsible for funding the study while Bristol Myers provided Opdivo at no cost. Bristol Myers’ Opdivo is a blockbuster PD-1 inhibitor which is approved for treating multiple oncology indications, including NSCLC.During first-quarter 2023, Bristol Myers generated $1.3 billion from Opdivo sales.

Currently, Mirati has only one marketed drug in its portfolio, Krazati (adagrasib) which was approved by the FDA last December to treat adult patients with KRASG12C-mutated locally advanced or metastatic NSCLC. The drug has been developed to directly inhibit KRAS G12C mutations. Mirati is also evaluating Krazati in multiple label expansion studies, both as monotherapy and as combination with other drugs, in multiple oncological indications.

Apart from the above candidates, the company is also evaluating a PRMT5 inhibitor and SOS1 inhibitor candidates in separate early-stage clinical studies.

Mirati Therapeutics, Inc. Price

 

Mirati Therapeutics, Inc. price | Mirati Therapeutics, Inc. Quote

Zacks Rank & Stocks to Consider

Mirati currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include ANI Pharmaceuticals (ANIP Quick QuoteANIP - Free Report) and Allogene Therapeutics (ALLO Quick QuoteALLO - Free Report) . While ANI Pharmaceuticals sports a Zacks Rank #1 (Strong Buy), Allogene carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 30 days, estimates for ANI Pharmaceuticals’ 2023 earnings per share have increased from $2.42 to $3.31. During the same period, the earnings estimates per share for 2024 have risen from $3.76 to $4.32.  Shares of ANI Pharmaceuticals are up 16.0% in the year-to-date period.

Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering an average earnings surprise of 68.64%. In the last reported quarter, ANI Pharmaceuticals’ earnings beat estimates by 244.12%.

In the past 30 days, estimates for Allogene Therapeutics’ 2023 loss per share have improved from $2.44 to $2.32. During the same period, the loss estimates per share for 2024 have narrowed from $2.46 to $2.21. Shares of Allogene Therapeuticshave declined 9.5% in the year-to-date period.

Earnings of Allogene Therapeutics beat estimates in three of the last four quarters while missing the mark on one occasion. On average, the company’s earnings witnessed a surprise of 5.08%. In the last reported quarter, Allogene Therapeutics’ earnings beat estimates by 7.94%.