One-glance verdict
$80.39 our estimate vs market $7.45
Wall Street consensus: $31.85 (-60.4% lower than our fair-value estimate)
91% below our estimate, below the bear case
Fundamentals snapshot
KURA · NMS · Healthcare · Biotechnology
Current price
$7.45
52-week range
$6.75 - $13.90
Market cap
$662.76M
One-glance verdict
Wall Street consensus: $31.85 (-60.4% lower than our fair-value estimate)
91% below our estimate, below the bear case
Balance sheet
Net cash $494.57M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Kura Oncology is developing new cancer medicines, with their main product, KOMZIFTI, aimed at treating certain types of leukemia. Their business model relies on successfully bringing these new drugs to market and selling them to patients and healthcare providers. This matters because a successful drug launch could lead to significant revenue for the company, which they can then use to fund further research and development of even more treatments.
"How the company got here" Kura Oncology was founded in 2014 with the goal of developing targeted small-molecule cancer therapies. The company went public in 2015, securing capital to fund its clinical development efforts. In the late 2010s, Kura Oncology focused on building its pipeline, particularly with its drugs tipifarnib and ziftomenib, emphasizing treatments for genetically defined patient populations. A significant development occurred in 2020 with a collaboration with Kyowa Kirin concerning tipifarnib in Japan, signaling an early strategic partnership. More recently, ziftomenib has emerged as the company's lead drug candidate, supported by clinical trials in acute leukemias. In 2024, Kura Oncology entered into a major global collaboration with Kyowa Kirin for ziftomenib, which provided additional development support and funding for future commercialization. "What it actually does" Kura Oncology is a biopharmaceutical company that develops precision medicines, which are treatments designed to target specific molecular or genetic features of a patient's tumor. Instead of using broad treatments that can affect healthy cells, Kura focuses on small-molecule drugs that precisely target cancer signaling pathways. This approach aims to improve outcomes for patients by identifying those most likely to respond to a particular therapy. The company's work is centered on understanding cancer biology to overcome treatment resistance and expand the number of patients who can benefit from these advanced therapies. "Ziftomenib (KOMZIFTI)" Kura Oncology's lead product is ziftomenib, marketed as KOMZIFTI in the U.S.. This drug is an oral menin inhibitor approved for adults with relapsed or refractory acute myeloid leukemia (AML) who have a specific genetic mutation called NPM1. Menin inhibitors work by blocking the interaction of two proteins, menin and KMT2A, which are crucial for the survival and growth of certain leukemia cells. By inhibiting this interaction, the drug aims to help cancerous cells mature into normal white blood cells. Ziftomenib is also being studied in combination with other cancer therapies for different types of AML and in other cancer indications. "Darlifarnib (KO-2806)" Darlifarnib, also known as KO-2806, is an investigational drug that Kura Oncology is developing as a next-generation farnesyl transferase inhibitor (FTI). Farnesyl transferase is an enzyme that plays a role in cellular pathways that can lead to resistance against various cancer treatments. By inhibiting this enzyme, darlifarnib has the potential to improve how other cancer therapies work, especially in combination treatments. This drug is being evaluated in clinical trials, often in combination with other targeted therapies, for various solid tumors, including advanced clear cell renal cell carcinoma. "KO-7246" KO-7246 is an investigational, next-generation menin inhibitor that Kura Oncology is developing for diabetes and other cardiometabolic disorders. This drug is being developed by Caspian Therapeutics, a company in which Kura Oncology holds a significant ownership stake. Preclinical studies suggest that KO-7246 may help the body regenerate insulin-producing beta cells in the pancreas, thereby improving glucose control without causing dangerously low blood sugar (hypoglycemia). The development strategy for KO-7246 is focused on harnessing the body's natural ability to produce insulin. "What management is betting on now" Kura Oncology's current strategy centers on building upon the early commercial success of KOMZIFTI (ziftomenib) by expanding its use into earlier stages of treatment for acute myeloid leukemia (AML). The company is focused on combining ziftomenib with various standard-of-care treatments and exploring its application across a broader range of genetically defined AML patient populations. Management is also prioritizing the advancement of darlifarnib (KO-2806) in combination therapies for solid tumors and the development of KO-7246 for diabetes through its affiliate, Caspian Therapeutics. This multi-pronged approach aims to maximize the value of their pipeline by addressing significant unmet needs in both oncology and metabolic diseases.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $31.85 (-60.4% lower than our fair-value estimate).
Our most-likely fair value is $80.39 a share — about 979.1% above today's price of $7.45, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Net cash $494.6M - more cash than debt. Interest coverage -200.8x.
Kura Oncology, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $24.45M Interest coverage -200.81x This is the baseline the peer rows are being compared against.
Total debt $589.41M Interest coverage -8.08x Neither company has much profit cushion over interest right now.
Total debt $27.03M Interest coverage -11.20x Neither company has much profit cushion over interest right now.
Total debt $29.70M Interest coverage -3.49x Neither company has much profit cushion over interest right now.
Total debt $31.18M Interest coverage -19.77x Neither company has much profit cushion over interest right now.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know