Would just point out that MRTX has always been further behind it's competitors BMPC, LOXO and RXDX in the race to get mutation-targeted cancer cure out. The fact that they're behind and have run into safety issues at an early stage with their lead drug is the reason why it is down so much. Positives fwiw: 1) they did a secondary at the top of their historic stock price, 2) hired on an investor relations exec earlier than any of their comps - this last one may also be viewed as a neg for the discerning investor
I don't think the MRTX data is similar at all with RXDX's. Huge sell vol in MRTX as issues with toxicity come to light with one of the drugs in dev. Data for RXDX-105 was positive in terms of safety but still very early in terms of efficacy. No RECIST-confirmed tumor reductions - too early. I'm waiting to hear Lim's spin on the not-so-exciting ASCO presentation at the Jeffries Conf. RXDX really came into the spotlight at last yr's ASCO with over the top exciting preliminary data (90% response rate) for RXDX-101. I'm concerned that they seem to be pivoting investor focus on RXDX-105 and other drugs in dev. They need to have a little more laser-focus like LOXO.
Ah.. it would have been better if they did it when their stock price wasn't trading in the single digits (like the previous secondary). we'll find out soon enough what the last qtr's cash burn was, but i feel that Lim and co. pulled the trigger in cash raising a bit prematurely, all things being equal. This is heavy dilution for those of us who aren't buying more currently.
Doc, the recent pipeline prioritization was unquestionably due to their unexpected high cash burn. Their op expenses seem to be higher than their comp group. Lim seems to be spending a lot on exec salaries and building a top-heavy mgmt structure. Mgmt does seem to believe in RXDX 101 hence the recent insider buying. Can't tell at this pt if it is better than, let's say, LOXO lead product which is also a TRK-targeted inhibitor - this has a 50%- response rate but LOXO has 2x mkt cap.
So why hasn't it? it sounds like you work for the co. RXDX provides more info, to the public, seems to be further along in its trials, and has more cash on-hand than any of its comps - MRTX, BPMC and LOXO, yet it trades at a severe discount and has the smallest mkt cap. Why the Disrespect?