Mirati Therapeutics, Inc. (MRTX): Marketing Mix Analysis [10-2024 Updated]

In the dynamic landscape of biotechnology, Mirati Therapeutics, Inc. (MRTX) stands out with its innovative approach to cancer treatment, particularly through its flagship product, KRAZATI. This FDA-approved medication targets specific genetic mutations, offering new hope for patients with KRAS G12C-mutated non-small cell lung cancer (NSCLC). As we delve into the four P's of marketing—Product, Place, Promotion, and Price—you'll discover how Mirati is strategically positioning itself for growth and success in the competitive pharmaceutical market.

Mirati Therapeutics, Inc. (MRTX) - Marketing Mix: Product

KRAZATI is the primary product, FDA-approved for KRAS G12C-mutated NSCLC.

KRAZATI (adagrasib) is Mirati Therapeutics' lead product, specifically developed for the treatment of adult patients with KRAS G12C-mutated non-small cell lung cancer (NSCLC) who have received at least one prior systemic therapy. It received FDA approval in December 2022.

Launched commercially in December 2022.

The commercial launch of KRAZATI occurred in December 2022, marking a significant milestone for Mirati Therapeutics as it transitioned from a clinical-stage company to a commercial-stage entity.

Focused on targeting genetic mutations in cancer treatment.

KRAZATI is part of a growing class of targeted therapies aimed at specific genetic mutations, representing a shift towards precision medicine in oncology. The drug's mechanism of action involves inhibiting the mutated KRAS protein, which plays a critical role in cancer cell proliferation.

Ongoing clinical trials for additional product candidates (e.g., MRTX1719, MRTX0902).

Mirati Therapeutics is actively engaged in clinical trials for additional product candidates. Notable candidates include:

• MRTX1719: Currently in Phase 1 clinical trials.
• MRTX0902: A selective SOS1 inhibitor, also in Phase 1/2 clinical trials, which has received Fast Track Designation from the FDA.

Sales include revenues from KRAZATI and collaborations.

For the three months ended September 30, 2023, Mirati reported product revenue, net, of $16.4 million, with total product revenue for the nine months ending that date amounting to $36.1 million. During this period, $1.3 million and $3.0 million of product revenue were generated from KRAZATI sales to a third-party commercial customer for clinical trials.

As of September 30, 2023, Mirati's accounts receivable balances related to KRAZATI product sales amounted to $14.7 million, reflecting the growth in sales since the product's launch. The company also reported accrued liabilities for government and commercial rebates totaling $2.8 million.

Mirati's strategy emphasizes innovation in targeting genetic mutations, indicating a strong commitment to advancing cancer treatment options. The ongoing development of additional candidates like MRTX1719 and MRTX0902 further exemplifies the company's focus on expanding its product portfolio in the oncology space.

Mirati Therapeutics, Inc. (MRTX) - Marketing Mix: Place

Products primarily sold through specialty pharmacies and distributors

Mirati Therapeutics, Inc. sells its primary product, KRAZATI, through specialty pharmacies and specialty distributors. As of September 30, 2023, the product revenue, net was reported at $16.4 million for the quarter, with cumulative product revenue for the nine months ended September 30, 2023, reaching $36.1 million.

Distribution channels cater to healthcare providers and patients

The distribution strategy is focused on ensuring that KRAZATI is accessible to healthcare providers and patients. The revenue from product sales is recognized when the customer, typically a specialty pharmacy, obtains control of the product upon delivery.

Focus on the U.S. market with potential for international reach

Mirati's primary market focus is the United States, where KRAZATI was launched in December 2022. The company retains exclusive rights to develop, manufacture, and commercialize sitravatinib outside of the BeiGene Licensed Territory, which includes regions in Asia and Australia.

Collaboration with partners like BeiGene for regional commercialization

Mirati has entered into a collaboration and license agreement with BeiGene, which includes an upfront fee of $10 million and potential milestone payments totaling up to $123 million based on specified clinical and regulatory achievements. This partnership aims to enhance the commercialization of sitravatinib in select international markets, expanding the distribution capabilities beyond the U.S. market.

Mirati Therapeutics, Inc. (MRTX) - Marketing Mix: Promotion

Marketing efforts emphasize KRAZATI's unique targeting of KRAS mutations

Mirati Therapeutics focuses its promotional strategies on KRAZATI (adagrasib), a treatment specifically designed for patients with KRAS G12C mutations. The product received FDA approval and was launched in the U.S. in December 2022. As of September 30, 2023, the product revenue, net for KRAZATI was $16.4 million for the third quarter and $36.1 million for the first nine months of 2023.

Engagement with healthcare professionals through educational initiatives

Mirati Therapeutics actively engages healthcare professionals through various educational initiatives. These initiatives include scientific conferences, webinars, and direct outreach to oncologists and healthcare providers to inform them about the clinical benefits of KRAZATI. The company’s selling, general, and administrative expenses, which encompass marketing efforts, totaled $72.0 million for Q3 2023, an increase from $60.8 million in Q3 2022.

Limited promotion until regulatory approval for new products

Mirati maintains a cautious promotional approach for new products until they receive regulatory approval. This strategy is particularly relevant for products currently in clinical trials or awaiting FDA review. For instance, the company has not yet initiated extensive promotional activities for its pipeline candidates, which includes drugs currently undergoing clinical trials.

Focus on building a sales force to drive awareness and adoption

To enhance market penetration for KRAZATI, Mirati is focused on building a robust sales force. This initiative aims to increase awareness and drive adoption among healthcare professionals. The total operating expenses, which include costs associated with expanding the sales team, were reported at $188.5 million for Q3 2023, reflecting a strategic investment in sales and marketing resources.

Mirati Therapeutics, Inc. (MRTX) - Marketing Mix: Price

KRAZATI pricing influenced by third-party payor negotiations

The pricing of KRAZATI, Mirati Therapeutics’ primary product, is significantly influenced by negotiations with third-party payors. As of September 30, 2023, the product revenue for KRAZATI was reported at $16.4 million for the third quarter and $36.1 million for the first nine months of 2023. The net sales price recognized includes estimates for various discounts and allowances that are negotiated with payors.

Revenue recognition based on net sales price after discounts and allowances

Revenue recognition for KRAZATI is based on the net sales price, which accounts for discounts and allowances. For the three months ended September 30, 2023, the company recognized $1.3 million in product revenue related to sales of KRAZATI for clinical trials. The accounts receivable related to KRAZATI sales amounted to $14.7 million, net of chargebacks and allowances totaling $1.0 million.

Potential for variable pricing based on government and commercial rebates

Mirati Therapeutics has identified potential variable pricing strategies that are contingent upon government and commercial rebates. As of September 30, 2023, the company reported government and commercial rebates, along with program incentives and provisions for product returns, totaling $2.8 million. This amount is included in accrued liabilities on the balance sheet and reflects the company's strategy to manage pricing through these rebates.

Financial strategy includes co-payment assistance programs for patients

The financial strategy of Mirati Therapeutics also encompasses co-payment assistance programs aimed at patients. These programs are designed to enhance affordability for patients and improve access to KRAZATI. The specific financial impacts of these programs on the overall pricing strategy have not been disclosed in detail but represent a significant component of the company's approach to pricing and market access.

In summary, Mirati Therapeutics, Inc. effectively leverages its marketing mix to position KRAZATI as a leader in targeted cancer therapy. Through a strong focus on the U.S. market and strategic collaborations, the company enhances its product availability and promotes awareness among healthcare professionals. As it navigates the complexities of pricing and distribution, Mirati's commitment to innovation and patient support will be crucial in driving future growth and expanding its footprint in the oncology market.