Juno Therapeutics' Hold Is 'More Impactful To Sentiment Than Estimates'

Dane Leone of BTIG remains Neutral on Juno Therapeutics Inc JUNO, which voluntarily placed on hold a mid-stage clinical trial dubbed ROCKET of JCAR015 tested in adult patients with relapsed or refractory B cell acute lymphoblastic leukemia.

The company’s move follows two patient deaths in the study from cerebral edema.

Leone noted that the expectations for the study were low key following the FDA’s clinical hold back in July after several patients died in the study. But the trial hold was lifted after a week with a protocol change to eliminate fludarabine preconditioning.

“Expectations for JCAR015 were reduced after the first clinical hold, so although today’s announcement will be a negative for sentiment on JUNO heading into ASH, it has limited impact on our financial estimates,” Leone wrote in a note.

Leone expects the JCAR015 program will be terminated, with the ROCKET study for Adult ALL being the lead study.

At last check, shares of Juno plunged 26.74 percent to $21.89, after earlier hitting a new 52-week low of $19.41.