H.C. Wainwright analysts lowered the price target on Ikena Oconology (IKNA) to $4.00 (from $11.00) while maintaining a Buy rating.
The analysts commented: "Yesterday, Ikena Oncology announced their decision to discontinue development of IK-930 (TEAD1i), which was initially intended to be developed for epithelioid hemangioendothelioma (EHE) and other hippo pathway altered tumors. While the decision was unexpected, we note that this is not a failure of Ikena to create a novel TEAD targeting molecule, but one where the full potential of IK-930 can be realized through additional combination studies via a potential future partnership. We have always believed that development in EHE served more so to potentially de-risk the druggability of the hippo pathway toward larger solid tumor markets of RAS and EGFR resistance. Given a cash runway into 2H26 ($157.3M), we believe focusing on the development of IK-595 (RAF/MEK glue) as a mono and combination therapy across RAS and RAF altered cancers is a net positive. As both markets can provide large segments of underappreciated value given the shortcomings from various approved and upcoming strategies. While drug development is all about timing, we emphasize that Ikena remains at the forefront of development of what we feel could be a best-in-class molecular glue toward RAF/MEK. Hence, given the exit of IK-930 from the pipeline we reiterate our Buy rating but lower our PT to $4 from $11."