Mural Oncology's Retail Buzz Explodes After Micro-Cap Biotech Mulls Strategic Alternatives

Mural Oncology Plc.'s stock (MURA) notched its best session ever on Tuesday, soaring nearly 134%, and extended gains in after-hours trading as the biotech firm said it was exploring strategic alternatives.

The cancer drug maker said it would discontinue all clinical development of its lead drug candidate, nemvaleukin alfa, following disappointing data from two Phase 2 trials in melanoma and previously reported Phase 3 results in ovarian cancer.

The company also said it had failed to meet the primary endpoint in its ARTISTRY-6 mucosal melanoma study, and preliminary data from a cutaneous melanoma cohort showed insufficient activity to continue.

Mural said it plans to explore strategic alternatives, including a potential sale, merger, or other transaction, and has hired Lucid Capital Markets as its financial advisor. 

It has not received any offers or is in active discussions. 

As of Dec. 31, 2024, the company held about $144.4 million in cash and equivalents and will cut approximately 90% of its workforce as part of the strategic shift.

The news sent message volume involving Mural Oncology on Stocktwits soaring by 62,000%, the highest among healthcare stocks, although sentiment plunged further into 'extremely bearish' territory.

Several skeptical retail watchers expect the stock to drop below $2 on Wednesday.

According to Koyfin, four analysts cover the stock, with two recommending a 'strong buy' and two with a 'hold' rating.

Mural Oncology's stock has lost over a quarter of its valuation this year.

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