Kinnate Biopharma Inc

Kinnate Biopharma Inc. (NASDAQ: KNTE) is a clinical-stage precision oncology company. It is focused on the discovery, design, and development of small molecule kinase inhibitors for difficult-to-treat, genomically defined cancers. Its lead product candidate is exarafenib (KIN-2787), which is a Rapidly Accelerated Fibrosarcoma (RAF) inhibitor in development for the treatment of patients with lung cancer, melanoma, and other solid tumors.

Recent Financial and Business Updates:

• Pipeline Updates:
• KNTE has obtained approval from the U.S. Food and Drug Administration (FDA) for the Investigational New Drug (IND) application concerning KIN-7136, a potential brain-penetrating inhibitor of mitogen-activated protein kinase (MEK). In the latter half of 2023, KNTE anticipates commencing a Phase 1 clinical trial, designated as KN-3603, to assess KIN-7136 in adult patients with advanced solid tumors driven by the mitogen-activated protein kinase pathway. This trial will primarily focus on non-small cell lung cancer, including patients with brain metastases. The evaluation of KIN-7136 will involve both monotherapy and its combination with Kinnate’s investigational pan-RAF inhibitor, exarafenib.
• On August 16, KNTE is scheduled to make its inaugural presentation regarding the structure and discovery of the FGFR inhibitor, KIN-3248, at the 2023 American Chemical Society event.
• KNTE recently showcased a poster at the 2023 American Society of Clinical Oncology Annual Meeting, elucidating the analysis of the genomic landscape based on circulating tumor DNA. This analysis aids in the assessment of molecular brake and gatekeeper mutations in FGFR2.

• Financial Results:
  • As of June 30, 2023, KNTE's total cash, cash equivalents, and investments amounted to USD 204.3 million, a sufficient reserve that is expected to sustain KNTE's ongoing operations until early 2025.
  • Research and development expenses for the second quarter of 2023 were USD 26.3 million, as compared to USD 19.8 million for the same period in 2022.
  • General and administrative expenses for the second quarter of 2023 totaled USD 7.8 million, a slight increase from the USD 7.6 million reported for the corresponding period in 2022.
  • The net loss for the second quarter of 2023 amounted to USD 31.9 million, which reflects an increase from the USD 27.1 million net loss incurred during the same period in 2022.
    

Technical Observation (on the daily chart)

The price of KNTE stock has shown a consistent downward trend since making 52-week high on September 13, 2022, correcting around 86.01%. Currently, the stock is near an important support zone of USD 1.80-USD 2.00, from where price has taken support in the past. The RSI (14 period) momentum indicator is at a value of 35.54, with expectations of some consolidation or an upside momentum. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance levels.

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As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Kinnate Biopharma Inc. (NASDAQ: KNTE) at the current price of USD 1.95 as of September 12, 2023, at 07:30 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Yellow colour line reflects the 20-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 20-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Green colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 12, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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