Taking a Look at $MRTX:
A updated look at Mirati Therapeutics.
A updated look at Mirati Therapeutics.
1/ Management:
Mirati is one of my older holdings along with Blueprint. They were lead by founder and scientist Charles Baum. I think he did a really good job developing the company up to this point.
Mirati is one of my older holdings along with Blueprint. They were lead by founder and scientist Charles Baum. I think he did a really good job developing the company up to this point.
2/ He created Sitravatinib and in-licensed Adagrasib for KRAS G12C. Recently, they changed management by moving Baum to Chief of Research. They brought in David Meek as the new CEO to take them into the commercial phase of development.
3/ As always, I am very cautious whenever there is a management change.
4/ Science:
Mirati is focused on the intracellular pathways that drive cancer growth. Their first drug is Sitravatinib affects the Tyro, Axl, and Mer (TAM) family of kinases. They play a role in immune cells and are in development in combination with PD-1 inhibitors.
Mirati is focused on the intracellular pathways that drive cancer growth. Their first drug is Sitravatinib affects the Tyro, Axl, and Mer (TAM) family of kinases. They play a role in immune cells and are in development in combination with PD-1 inhibitors.
5/ Their second program is Adagrasib which is their KRAS G12C inhibitor. KRAS is a key GTPase in the MAPK pathway that drives cell growth and proliferation. They also have an early KRAS G12D and PRMT5 inhibitors in development.
6/ Potential:
Adagrasib will be their first drug to reach commercial if it gets approved by its December PDUFA date. It could be worth $1.5 billion up to $2 billion depending on the market share they can capture vs Amgen.
Adagrasib will be their first drug to reach commercial if it gets approved by its December PDUFA date. It could be worth $1.5 billion up to $2 billion depending on the market share they can capture vs Amgen.
7/ This space is about 10,000 to 13,000 patients in Lung cancer and more including Pancreatic and CRC. Sitravatinib could be worth about $500 million in combination with PD-1 inhibitors as it only helps about 20% to 25% of the patients.
8/ The early KRAS G12D indication could double their potential for the overall KRAS space to upward of $3 billion.
9/ Value:
Mirati is really looking cheap at $4.48 billion market cap. They have $1.5 billion in cash. They burned about $600 million cash in 2021 which gives them at least 2 years of cash.
Mirati is really looking cheap at $4.48 billion market cap. They have $1.5 billion in cash. They burned about $600 million cash in 2021 which gives them at least 2 years of cash.
10/ A lot depends on them getting approval at the end of this year. They could quickly drive sales and reduce their cash burn. Any delays will cause them do another large financing.
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