The stock price of Kite Pharma Inc (NASDAQ:KITE), a clinical-stage biotech firm focused on advancing therapies based on CARs for the cure of blood and solid cancers, surged over 24% in last trading session after the firm released fourth-quarter earnings report and posted top-line clinical data for axicabtagene ciloleucel.
Without question, the major catalyst for Kite Pharma is the launch of ZUMA-1 top-line study report on axicabtagene ciloleucel as a cure for people with chemo refractory aggressive ‘B-cell’ non-Hodgkin lymphoma.
The buzz
Of the 101 subjects registered in ZUMA-1, 82% of patients with diffuse bigger B-cell lymphoma showed an objective response, with as many as 49% depicting a complete response. The new treatment was durable, with 36% of subjects still showcasing an objective response after 6 months, counting 31% with a comprehensive response.
The smaller cohort, comprising of the other 24 subjects with main transformed follicular lymphoma and mediastinal B-cell lymphoma, had an ORR of 83%, with 54% continuing that response over month six. With Kite’s trial drug displaying a durable response, it’s up to a competing drug – JCAR017 to do the same in a DLBCL study later in 2017.
Beyond the clinical report, the lesser catalyst is Kite’s fourth-quarter financial earnings report. The firm wound up reporting a loss of $1.31 a share in the reported period, down $0.01 compared to Wall Street projections, on sales of $4.9 million. Kite also released revenue projection of $40 million to $50 million in FY2017, though it has no offerings approved by the U.S. FDA. The company expects having enough cash to support its operations through 1H2018.
Earnings report aside the real buzz here is axicabtagene ciloleucel. A major question with company’s CAR-T medication was whether it can have a durable response past the preliminary strong readings noted in previous data launches.
