Mirati Therapeutics is a company that develops therapeutic products in the areas of oncology. It develops novel therapeutics that target the genetic and immunological drivers of cancer and help extend the lives of cancer patients. Some of the company’s products have already demonstrated a durable response to certain cancers. The demand for precision medicine, that Mirati develops, holds plenty of potential if the clinical trials are successful.
Company Background
Mirati Therapeutics was founded in the year 1995. The current CEO of the company is Charles Baum. Mirati Therapeutics has some well-known private equity players and hedge funds among its investors. Blackrock holds a 7% stake, Vanguard Group holds 8%, Boxer Capital holds 18%, and Baker Brothers holds 5%. Mirati is considered to be an early mover into the non-small cell lung cancer (NSCLC) market along with Amgen. Mirati is currently expected approval for its Adagrasib drug which can prove to be a major price catalyst for the company in the year 2021.
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The price action of Mirati Therapeutics is worth noting. The stock closed at $215 on 5th January 2020. Mirati Therapeutics has lost 9% in the preceding month. However, the stock is up more than 200% since the March market fall. On a longer 5-year horizon, the stock is up almost 7X. Being a smaller growth company, Mirati Therapeutics currently does not pay a dividend.
Meanwhile, the company’s peer Amgen is a much larger company. Its stock closed at $227 on 5th January 2020. Amgen has been up a marginal 0.5% over the preceding 30 days. The stock has risen by more than 22% since the March market fall. On a longer 5-year term, the stock has risen by more than 50%. Amgen’s performance hasn’t been as spectacular as Mirati’s, but it does pay a dividend. Amgen currently trades at a 3.1% dividend yield.
