Mirati Therapeutics became a commercial organization last year with the approval of adagrasib, now known as Krazati, and the company is churning out its next candidates.
While that means a loaded pipeline, CEO David Meek, in a nod to the tough market conditions facing biotechs at the moment, said at the J.P. Morgan Healthcare Conference Monday that the company won’t be afraid to cut and run if any of the assets don’t prove their worth. Mirati could also seek out partnerships to raise capital and keep things moving as needed.
Mirati’s drug discovery unit has helped the company file four investigational new drug applications in the past year, publish 30 patents and build a portfolio of projects to work on. Meek specifically highlighted the PRMT5 inhibitor MRTX1719, which is in phase 1/1b trials for methylthioadenosine phosphorylase (MTAP)-deleted cancers. MTAP deletion occurs in about 10% of all human cancers, including lung and pancreatic cancers.
Previous attempts at PRMT5 inhibitors had toxicity issues, but Mirati hopes to overcome those issues with broad therapeutic target coverage.
Mirati pushed Krazati through the clinic alone, but Meek said that partnering “is part of our DNA.” He said the company will explore partnering opportunities to raise capital and mitigate risk going forward.
“We’re very disciplined in how we deploy our capital,” Meek said. “We understand how important it is to deploy our capital to the programs that are going to deliver the highest return and also in a very data-driven manner.”
The company has about two years of runway with current cash on hand, which totals about $1.1 billion as of the end of 2022. Revenue from Krazati is expected to kick in this year to offset some of the cash burn.
Mirati will prioritize assets that have the “highest opportunity for capital,” Meek said. That could mean some tough decisions ahead.
“We also will shut down or stop or de-prioritize other programs that do not have the data to be first or best in class. Those programs will not be invested in in the future,” the CEO said. That will be based on upcoming data or catalysts, he added.
Back in November 2022, Mirati once again was leading M&A rumors, with a Bloomberg report reviving chitchat about a possible buyout. The report said that Mirati has been considering strategic options “for some time.”