Kura Oncology received a $150 million investment Wednesday, a week before it plans to unveil the test results for a cancer drug. Kura stock skyrocketed in early trades.
The news potentially bodes well for Kura's experimental medicine, known as ziftomenib. Ziftomenib is a targeted drug for patients with a specific genetic driver behind their acute myeloid leukemia. Kura plans to unveil the results of a study combining ziftomenib with standard treatments before the stock market opens next Tuesday.
The results could stoke further investment in Kura stock. But one group of investors jumped ahead on Wednesday, giving Kura a $150 million private placement. The group includes existing investors like EcoR1 Capital, an affiliate of Deerfield Management and Suvretta Capital.
The oversubscribed placement gives Kura a financial runway into 2027.
On the stock market today, Kura stock soared 46.1% to 19.61. Shares hit their highest point since July 2021.
Last month, Kura stock broke out of a cup base with a buy point at 14.32. But, on Tuesday, shares fell as much as 7.2% below their entry. Savvy investors are encouraged to cut their losses when a stock falls 7% to 8% below a buy point. If the premarket action holds, Kura stock will easily retake its buy point, MarketSmith.com shows.
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