Kura deal with Kyowa detracts from takeout narrative, says Mizuho

Mizuho keeps an Outperform rating on Kura Oncology (KURA) after the company and Kyowa Kirin announced a global developmental and commercialization agreement for ziftomenib in acute leukemias. The deal “provides a certain level of validation” for ziftomenib, especially given the timing of the collaboration and call commentary, the analyst tells investors in a research note. However, the collaboration “likely detracts from the near-term potential takeout narrative” around Kura, which has been something some investors had been articulating, contends Mizuho. However, for the upfront cash received in the deal, “the stock is now trading close to pro-forma cash, which doesn’t make sense outright,” the firm adds. Kura Oncology in premarket trading is down 19%, or $3.01, to $12.90.