IDEAYA Biosciences 2025 Q3 Earnings Record $119.24M Net Income Driven by Servier Partnership

IDEAYA Biosciences (IDYA) delivered a blockbuster third-quarter performance, reporting $207.83 million in revenue—far exceeding the $6.3 million FactSet estimate—and a net income of $119.24 million. The results were fueled by a $210 million upfront payment from Servier for the global rights to darovasertib. The company also raised its cash runway forecast to 2030, citing $1.14 billion in liquidity.

Revenue

The $207.83 million in revenue was entirely derived from collaboration income, stemming from the Servier licensing agreement. This one-time payment underscored the strategic value of IDEAYA’s lead drug candidate, darovasertib, in its international development.

Earnings/Net Income

IDEAYA reported $119.24 million in net income, translating to $1.35 in basic earnings per share. The EPS figure exceeded Wall Street’s expectations and marked a pivotal turnaround for the biotech firm, which had previously reported losses over the past three years.

Price Action

Shares of IDEAYA dipped 3.14% in the latest trading day and 7.83% for the week, despite the earnings beat. However, the stock rebounded with a 7.89% gain month-to-date, reflecting investor optimism about the company’s extended financial runway and pipeline milestones.

Post-Earnings Price Action Review

The stock’s immediate post-earnings decline contrasted with its broader 7.89% monthly rise, highlighting mixed investor sentiment. While the record profit and cash reserves bolstered long-term confidence, short-term volatility persisted amid cautious market positioning.

CEO Commentary

Yujiro S. Hata, President and CEO, emphasized the partnership’s role in “extending our runway into 2030 and enabling potential commercialization of darovasertib outside the United States.” He noted disciplined cost control, with R&D expenses at $83 million and operating profit of $108.45 million, as key enablers of the company’s financial flexibility.

Guidance

IDEAYA reiterated its focus on advancing darovasertib’s Phase 2/3 trial in uveal melanoma, with median progression-free survival data expected by early 2026. The company also highlighted its $1.14 billion cash cushion as sufficient to fund operations through 2030, aligning with its aggressive R&D timeline.

Additional News

1. Strategic Partnership: IDEAYA’s $210 million deal with Servier for darovasertib’s global rights provided critical funding and shared commercialization risks.

2. Financial Strength: The biotech’s cash reserves now exceed $1.14 billion, ensuring operational flexibility through 2030.

3. Clinical Milestones: The Phase 2/3 trial of darovasertib combined with crizotinib in uveal melanoma remains on track, with enrollment expected to complete by year-end.

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Conclusion

IDEAYA’s Q3 results underscore its transformation into a financially resilient biotech with a robust pipeline and strategic partnerships. The Servier deal not only funded immediate R&D needs but also positioned the company to capitalize on global commercialization opportunities.