Kymriah, First CAR-T Therapy Approved: 4 Pharma Stocks In Focus

 | Sep 07, 2017 05:15AM ET

Of late, biotechnology and pharmaceutical companies are investing in immuno-oncology research therapies as it remains a key area of focus, thanks to its vast growth potential. Last week, the immuno-oncology space grabbed investors’ attention with the FDA approving Novartis AG’s (NYSE:NVS) breakthrough gene transfer treatment, Kymriah (tisagenlecleucel) suspension for the treatment of patients up to 25 years of age with B-cell precursor acute lymphoblastic leukemia (ALL) that is refractory or in second or later relapse.

Kymriah, formerly CTL019, is the first chimeric antigen receptor T cell (CAR-T) therapy approved. A novel immunocellular therapy and one-time treatment, Kymriah uses patient's T cells to fight cancer.

While the long-term impact of the treatment is yet to be evaluated, the approval opens up new frontiers in the treatment of cancer. To start with, CAR-T uses patient’s cells to identify and destroy cancer cells, thereby making it different from other small molecule or biologic therapies. During the treatment, T cells are drawn from a patient's blood. These cells are then reprogrammed in the manufacturing facility to create genetically coded cells to express a chimeric antigen receptor to recognize and fight cancer cells and other B cells expressing a specific antigen.

With the approval of Kymriah, investors have started to shift their focus on a number of companies which have been developing their pipeline candidates to remain afloat in the highly competitive environment.

4 Stocks That Warrant a Look

Kite Pharma Inc. (NASDAQ:KITE) is expected to receive approval for its CAR-T therapy axicabtagene ciloleucel (axi-cel) shortly. The Biologics License Application for the candidate was submitted in March 2017. The application was gr priority review in the United States and the FDA is expected to give a decision on Nov 29, 2017. The candidate is also under review in the EU with a tentative approval expected in 2018. The candidate is being developed for the treatment of refractory aggressive non-Hodgkin lymphoma, which includes diffuse large B-cell lymphoma, transformed follicular lymphoma and primary mediastinal B-cell lymphoma.

Given the likely approval and potential in the space, Gilead Sciences Inc. (NASDAQ:GILD) has inked a deal to acquire Kite Pharma for $11.9 billion. Kite Pharma’s stock has moved up 297.0% year to date, which compares favorably with a 15% increase registered by the the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .