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Mirati slumps for second day on adagrasib lung cancer data; down 30%

  • Mirati Therapeutics (NASDAQ:MRTX) is down 30% in Wednesday afternoon trading, a day after closing off 23%.
  • The biotech Tuesday released phase 2 data on its candidate adagrasib in combination with Merck's (MRK) Keytruda (pembrolizumab) in non-small cell lung cancer.
  • Although the combination demonstrated favorable tolerability and promising preliminary efficacy, some analysts were not impressed with the results.
  • BofA Securities Jason Gerberry said the efficacy was "on the low side." He added that the results raise concerns that reducing the starting dose or modifying the dose during treatment may improve tolerability but at the expense of efficacy.
  • Seeking Alpha's Quant Rating views Mirati (MRTX) as a hold with high marks for momentum, growth, and revisions.