Credit: Image source: Galapagos NV.
Image source: Galapagos NV.
Overall, Galapagos' partnership with two of the most successful biotechs in the industry is confidence-inspiring, especially given Gilead Sciences' equity stake, and for that reason, it's one of my favorite clinical-stage stocks to buy.
A fast-approaching new cancer treatment
Kite Pharma (NASDAQ: KITE) thinks it can curb certain forms of cancer by helping the immune system find and destroy cancer cells better.
Its most advanced therapy is KTE-C19, a drug that reengineers patient T-cells so that they can bind to CD19 proteins that are expressed on the surface of blood cancer cells, including diffuse large B cell lymphoma (DLBCL) cells. Results from a mid-stage study that could support an FDA approval are expected before the end of 2016.
Although cancer trials are notorious for disappointing investors, evidence suggests KTE-C19 may be the exception. In June, Kite Pharma updated investors on phase 1 results of KTE-C19 in DLBCL. After receiving one single treatment of KTE-C19, there were three complete remissions at the nine-month mark in patients who were refractory to chemotherapy. Overall, the objective response rate was 71% in the seven-person study.
Kite Pharma's potential to reshape cancer care is significant because response rates are typically low in this tough-to-treat patient group; however, investors should keep their enthusiasm in check. After all, there's no guarantee that the phase 2 trial will confirm the efficacy observed in KTE-C19's prior trial -- and if it doesn't, shares could fall sharply.
Nevertheless, if phase 2 results do lead to an FDA filing for approval, then this drug could begin adding meaningful revenue to Kite Pharma by this time next year. That's why it ranks as another top clinical-stage stock to buy.
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Todd Campbell owns shares of Gilead Sciences.Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned.Like this article? Follow him on Twitter where he goes by the handle @ebcapitalto see more articles like this.The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short October 2016 $85 calls on Gilead Sciences. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
