What happened
Shares of Tango Therapeutics (TNGX 1.50%) were down more than 12% as of 11:15 a.m. on Monday. The healthcare stock is up more than 37% this year.
So what
Tango is a clinical-stage biotech that focuses on precision oncology therapies. The stock reached a 52-week high of $13.03 on Thursday, because several companies were pursuing another oncology-focused biotech, Mirati Therapeutics. On Sunday, the chase ended for Mirati after Bristol-Myers Squibb said it was spending $5.8 billion to purchase Mirati.
Tango's slump on Monday had no real company-related news peg, just investors taking profits. At the stock's current price, it is still well over the 20-day moving average of $9.98 and the 50-day moving average of $7.76.
Now what
Tango, unlike Mirati, doesn't have any approved therapies, but it does have a promising pipeline that includes five programs. In September, the company got approval from the Food and Drug Administration (FDA) for its Investigational New Drug application for TNG348, a potential breast cancer, prostate cancer, and ovarian cancer therapy.
The company's lead therapy is TNG908, which is in a phase 1/2 trial to treat patients with MTAP-deleted tumors, which are present in roughly 10% to 15% of all cancers. An update on that trial is expected next year.
Tango's pipeline makes it a decent buyout target. Its financials are better than those of most clinical-stage companies. As of the second quarter, the company said it has $310.7 million in cash, enough to fund operations into 2026. It also reported $9.6 million in collaboration revenue, up 65.5% year over year, and a loss of $20.7 million compared to a loss of $24.9 million in the same period a year ago.
