Shares of the Kura Oncology, Inc. (KURA) stock were falling in the premarket trading session today on November 24, 2021. KURA stock price saw a downtrend of 29.76% to drop at $11.76 a share at the time of this writing. The stock was green in the previous trade and went up by 0.67% at closing. Let’s take a closer look to understand the reason behind this fall.
U.S. Food and Drug Administration (FDA) recently placed the KOMET-001 Phase 1b study of KO-539 in patients suffering from acute myeloid leukemia (AML) on partial clinical hold. KURA stock recently reported FDA the Grade 5 serious adverse event. The adverse event relates to the differentiation syndrome. The FDA in response to this adverse event started the partial clinical hold.
Patients who are already enrolled in the Phase 1b study will continue to receive KO-539. However, until the partial clinical hold resolves, the KURA stock will not enroll the additional patients. The study team of KURA is working diligently with FDA and site investigators in order to resolve the partial clinical hold as soon as possible.
Financial View of KURA stock:
In the first week of November, KURA stock announced third quarter 2021 financial results according to which
- Net loss in the reported quarter reached $33.4 million as compared to $23.8 million net loss in the same period of the previous year. Non-cash share-based compensation expenses of $6.1 million were also included in this loss.
- The company spent $11.3 million in general and administrative expenses in the third quarter of 2021. In the same quarter of the previous year, these expenses were $7.6 million.
- Research and development expenses of the KURA stock reached $22.4 million in the third quarter of 2021. These expenses were $16.6 million in the same tenure as the previous year.
- By the end of the reported quarter, Kura Oncology had $543.4 million in cash, cash equivalents, and short-term investments.
Outlook of KURA stock:
- The company expects that its full-year 2021 operating expenses will be between $130 million to $140 million.
- The stock projected $105 million to $115 million net cash for operating activities for the full year 2021.
- The management of the KURA stock is optimistic that the stock has enough cash in hand to finance its operations by 2024.
The market sentiment is negative for Kura Oncology after the release of the update regarding Phase 1b study of KO-539. In a nutshell, investors must be cautious before adding this stock to their portfolio.