Jim Cramer Calls Kura Speculative But Says “It’s One of the Stronger Ones I’ve Seen in a Very Long Time”

Kura Oncology, Inc. (NASDAQ:KURA) is one of the stocks that was on Jim Cramer’s radar. Cramer noted that he agrees with the analysts bullish toward the company, as he remarked:

“Analysts at Citizens pounded the table on Kura because they really believe in the technology and the company’s now sitting on a big pile of cash. This is a company with a pro forma cash position for $745 million, very little debt. When you consider that its market capitalization is just $500 million, oh, come on, you’re practically getting their whole cancer franchise for free. And you know what? I agree with the bullish analysts.

Of course, I stand by what I said to… [the caller who asked about the stock the previous night], it’s purely speculative stock. But if you want to speculate on cancer treatments, I think this could be a great way to go. Overall, I see lots to like here…. I also like that Kura now has plenty of cash flowing into the business, and I love the fact that the stock has pulled back hard over the past two weeks despite all the good news coming out of the American Society of Hematology conference.

This stock peaked at $12.49 mid November, the day the FDA approved the lead drug. It’s now down to just under 10 bucks, back to where it was trading in mid-October. In other words, you’re actually getting that FDA approval for free at this point. So here’s the bottom line… While it’s very much your typical speculative biotech story, it’s one of the stronger ones I’ve seen in a very long time.”

Photo by Artem Podrez on Pexels

Kura Oncology, Inc. (NASDAQ:KURA) is developing targeted cancer therapies focused on genetically defined leukemias and solid tumors, with several drug candidates in clinical development. In November, the company, along with Kyowa Kirin, received FDA approval for KOMZIFTI (ziftomenib), a once-daily oral targeted therapy for adults with relapsed or refractory NPM1-mutated acute myeloid leukemia.

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Disclosure: None. This article is originally published at Insider Monkey.