Wedbush Asks: How Does Kite Pharma's ZUMA-1 Compare To Juno's TRANSCEND?

During its fourth-quarter 2016 earnings call, Juno Therapeutics Inc JUNO announced it would discontinue development of JCAR015.

This development was expected, since JCAR017 is “demonstrating potential for a best-in-class efficacy and safety profile for CD-19 directed CAR-T therapy,” Wedbush’s David Nierengarten said in a report. Furthermore, the analyst stated additional data from the TRANSCEND study can be expected this year. He maintains a Neutral rating on the company, with a price target of $24.

The TRANSCEND study of JCAR017 would indicate whether the compound could “become sufficiently differentiated from the first wave of competing CAR-T products in B-cell malignancies,” Nierengarten mentioned.

Related Link: Bluebird News A Positive For Juno, Kite Pharma

Comparing ZUMA-1 To TRANSCEND

JCAR017 achieved a 42 percent Complete Response rate at three months, with 14 percent neurotoxicity and 0 percent Cytokine Release Syndrome.

Kite Pharma Inc KITE (Rated: Neutral) reported interim ZUMA-1 study data, indicating a 64 percent CR rate, with 29 percent neurotoxicity and 13 percent CRS.

“With more mature data from TRANSCEND, and an anticipated gradual ramp from competitor KITE, we believe there is room for a later-to-launch CAR-T therapy with an improved efficacy and safety profile. Should a JCAR017 retain a higher CR rate and its side effect profile with additional patients, we could see JUNO have a viable product,” Nierengarten wrote.

Recent Stock Movements

  • At last check in Thursday's pre-market session, shares of Juno Therapeutics were down 7.47 percent at $23.42.
  • Kite Pharma shares were seen down 5.24 percent at $75.45.
Posted In: Analyst ColorBiotechEarningsNewsGuidanceHealth CareReiterationAnalyst RatingsMoversGeneralDavid NierengartenWedbush
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