Brain Cancer Stocks Tumble Due to Weak Study Outcome

Shares of clinical stage companies Kite Pharma (NASDAQ:KITE) and Juno Therapeutics (NASDAQ:JUNO), both developing new cancer therapeutics for the treatment of solid tumours known as CAR-T, edged lower on Monday on the heels of the release of weak data based on Novartis' study, reports said.

According to a report on The Wall Street Journal, the two stocks suffered from disappointing data based on an Interim Phase I clinical trial conducted by Novartis and the University of Pennsylvania for the pharmaceutical titan's CAR-T cancer therapy. The two companies’ shares dropped by almost 10 per cent on Monday, according to The Motley Fool.

TheStreet biotech columnist Adam Feuerstein reports Juno Therapeutics dropped 6 percent to US$60.70 [$78.22] in early Monday trading. Kite, meanwhile, lost 7 percent to US$60.79. As of this writing, Kite Pharma is up 0.53 percent to US$58.99 from its previous close. Juno is also up by 0.89 per cent at US$56.40.

The therapy uses patients' T cells to shrink solid tumours by targeting mesothelin, a protein expressed on the tumour's surface. According to Feuerstein, the therapy can be "administered safely" but "didn't appear to have much longevity or efficacy."

The Journal noted that while it's normal for investors to pull back from the stock, the study is still inconclusive. "Only six patients are enrolled in the Novartis study, and analysts at Morgan Stanley believe that treating solid tumours still represent a significant opportunity for developers," The Journal said.

In a separate report, however, Morgan Stanley reminded investors of the long-wait involved in investing in the sector. "Much more work remains before we can have confidence that CAR T therapy will be able to access the solid tumour market," Morgan Stanley analyst Matthew Harrison stated in a research note, according to Reuters.

CAR-T has shown promise in blood cancer patients, even if it's a smaller market compared to brain cancer. Novartis presented the data at the annual American Association for Cancer Research meeting on Sunday. The results did not affect Novartis' stock.

In related news, a new brain cancer drug called Pritumumab received orphan drug designation from the U.S. Food and Drug Administration. The therapy, developed by San Diego Nascent Biotech, Inc. (OTC:NBIO), is based on a human monoclonal antibody that targets ecto-domain vimentin, a novel target expressed on the surface of tumour cancer cells that has not yet been pursued by other companies in the space.

In a statement, Dr. Mark Glassy, Nascent Biotech’s Chief Science Officer, said, “Our data are comparable with the data generated in the earlier Japanese studies. We anticipate that by modifying the dosing of the previous Japanese human clinical trials, during upcoming domestic human clinical trials, we have the potential to markedly improve response rates.” Stocks of the company closed at US$1.32 on Monday.

Contact the writer: a.lu@ibtimes.com.au