Ikena Oncology Inc, a biotech company specializing in oncology research and development, has announced an organizational streamlining to focus resources on its ongoing targeted oncology clinical programs. The company aims to reallocate resources from exploratory research and discovery towards its key priorities.
Ikena Oncology is currently focused on two main programs: IK-930 and IK-595. IK-930 is a TEAD1-Selective Hippo Pathway Inhibitor, while IK-595 is a MEK-RAF Molecular Glue. The company has expanded and accelerated the recruitment of mesothelioma patients and additional epithelioid hemangioendothelioma patients for IK-930. A clinical data update for this program is planned for the second half of 2024.
For IK-595, the initial cohort was dosed in December 2023 and cleared the safety evaluation window. With the advancement of these programs, Ikena Oncology has reduced its workforce by approximately 35% over the first quarter of 2024.
The company’s strategic shift and organizational changes are aimed at maximizing resources and focusing on delivering key updates in 2024. With approximately $175 million in cash and cash equivalents as of December 31, 2023, and the implementation of these changes, Ikena Oncology’s financial runway is extended into the second half of 2026.
Wedbush, an investment firm, notes that Ikena Oncology has incorporated an upgraded formulation with improved exposure consistency into the dose-escalation study. The recruitment scope for the clinical trials has also expanded to include mesothelioma and additional hemangioendothelioma patients. Anticipated data updates, including insights into mesothelioma patients, are expected in the second half of 2024.
According to Wedbush, the enhanced formulation is expected to demonstrate superior activity compared to the original one, thanks to its improved pharmacokinetic properties. Wedbush maintains its Outperform rating and sets a price target of $8 for Ikena Oncology.
Another investment firm, William Blair, sees the restructuring as a prudent move by the company. While there were no financial concerns about Ikena Oncology, the firm believes that the strategic shift will enable the company to fully concentrate on delivering key updates in 2024. William Blair also maintains an Outperform rating for the company.
In addition to the organizational streamlining, Ikena Oncology announced that Bristol-Myers Squibb Company has chosen not to participate in the development of two programs: the AHR antagonist IK-175 for bladder cancer and the kynureninase IK-412 program. As a result, Ikena Oncology has regained complete rights to both programs, although the company currently has no plans to invest in their clinical development.
On the stock market, Ikena Oncology’s shares (ticker symbol: IKNA) are down 11.6% at $1.45 as of the last check on Friday.
Overall, Ikena Oncology’s organizational streamlining and focus on targeted oncology clinical programs demonstrate its commitment to advancing innovative treatments in the field of oncology. With key updates expected in 2024 and a strengthened financial position, the company is poised for further progress in its mission to combat cancer.
