Target Breakthrough Science and Medicine with Ideaya Biosciences

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Developing targeted therapeutics in the oncology-medicine field is a challenging but potentially lifesaving endeavor. Ideaya Biosciences (NASDAQ:IDYA) is an up-and-coming competitor in this area. And traders should put IDYA stock on their watch list as the company works tirelessly to develop breakthrough treatments.

Target Breakthrough Science and Medicine with Ideaya Biosciences
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It’s not necessary to understand the complex details of all the science behind Ideaya’s treatment candidates. However, prospective investors should be aware of the latest developments and decide for themselves whether Ideaya’s research will provide solutions for patients and value for shareholders.

Perhaps most exciting is Ideaya’s recently announced collaboration with a very well-known pharmaceutical company. This development could help on-the-fence traders decide that IDYA stock is worth taking a chance on.

A Closer Look at IDYA Stock

From a pure price-action perspective, IDYA stock might be off-putting to more cautious traders. However, investors should appreciate that the biotech sector is rife with big movers. In other words, volatility is part and parcel of biotech stock trading.

For a long time, the $11 level was a hard ceiling for IDYA shares. Long-side traders attempted to push the stock above that level four times since September of last year. Three of those times, they failed.

On the fourth attempt, however, they succeeded in spectacular fashion. Indeed, some traders might claim that June’s price surge from $7.22 to $19.27 was overdone. A retracement to the $14 area was in the cards, and now the share price seems to be stabilizing somewhat.

The point is, don’t come to the party unless you’re ready to dance. IDYA, and biotech stocks generally, are news-driven and jumpy. Trade this one with caution, i.e., with small position sizes only.

Essential Science

What differentiates this biotech firm from many others is its highly targeted approach to oncology-focused research and development. Specifically, Ideaya uses molecular diagnostics as the basis of its therapies for patients with tumors. Much of Ideaya ‘s treatment pipeline is based on the science behind “synthetic lethality.”

It’s a bit complicated, but the gist of the synthetic-lethality approach involves “removing… important regulators of cell function” to make “cancer cells more dependent on backup pathways that can then be targeted to achieve a therapeutic effect.”

Ideaya’s flagship product candidate is known as IDE196. It’s described as a “clinical stage, potentially first-in-class protein kinase C, or PKC, inhibitor for genetically-defined cancers having GNAQ or GNA11 gene mutations.”

IDE196 is designed specifically to target the cancer cells’ mechanistic pathways. Ideaya’s pipeline also includes a variety of synthetic-lethality-based treatments targeting ovarian cancer, colorectal cancer, and potentially other classes of tumors.

A Lethal Partnership

June has proved to be an exciting month for investors of IDYA stock. The company just announced a collaboration that could prove to be a game changer in the oncology field.

To help further three of Ideaya’s synthetic-lethality programs (MAT2A, Pol Theta and Werner Helicase), pharmaceutical giant GlaxoSmithKline (NYSE:GSK) agreed to a headline-grabbing partnership.

The benefits that Ideaya will accrue are sizable, to say the least:

  • An up-front cash payment of $100 million
  • A $20 million equity purchase of IDYA stock (via a direct private placement)
  • For the MAT2A program, the potential for a $50 million cash-option-exercise fee
  • For the Werner Helicase and MAT2A programs, a 50% U.S. profit share

In return, Ideaya will be responsible for 20% of the global development costs associated with the company’s licensed products developed with GlaxoSmithKline. Even with that, it’s fair to say that Ideaya will benefit from this partnership in a big way.

And, as Ideaya President and CEO Yujiro S. Hata seems to suggest, this collaboration could help the company in its quest to target specific classes of tumors associated with ovarian, colorectal, prostate, breast, ovarian and lung cancers.

The Bottom Line

If you’re prepared to accept a measure of price volatility in the biotech space, IDYA stock might be right up your alley. Whether you’ve absorbed all of the scientific data or not, you can’t deny Ideaya’s dedication and determination in pushing the boundaries of oncologic medicine.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, David Moadel did not hold a position in any of the aforementioned securities.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/target-breakthrough-science-medicine-idya-stock/.

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