$KITE Posts Wider-Than-Expected Q4 Loss – Tale of the Tape

Biotech Stocks

Kite Pharma (KITE) Posts Wider-Than-Expected Q4 Loss – Tale of the Tape

Kite Pharma, Inc. (KITE) is a developmental-stage biopharmaceutical company working in the field of cancer immunotherapy. Based in California, this company currently funding several early-single phase studies on oncology therapies (based on chimeric antigen receptors (CARs) or T cell receptors (TCRs)), which are each being conducted by the National Cancer Institute.


Given that the company does not have any revenue-generating products in its portfolio, investor focus will remain on pipeline and regulatory updates.


In Jan 2015, Kite Pharma entered into a strategic collaboration with Amgen to develop and commercialize the next generation novel chimeric antigen receptor T-cell immuno-therapies based on Kite’s engineered autologous cell therapy (eACT) platform and Amgen’s extensive array of cancer targets. Kite Pharma received an upfront payment of $60 million from Amgen in the first quarter of 2015.


Meanwhile, Kite Pharma is planning to conduct a phase I/II study on its lead candidate KTE-C19 a for the treatment of refractory diffuse large B cell lymphoma (DLBCL) including primary mediastinal B cell lymphoma and transformed follicular lymphoma subtypes. KTE-C19 enjoys orphan medicinal product status for DLBCL in Europe and orphan drug designation for the same indication in the U.S.

Kite Pharma has a disappointing track record with the company delivering negative surprises in the last two quarters with an average negative surprise of 460.51%. Estimate revisions are flat for 2015.


Currently, Kite Pharma has a Zacks Rank#3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:


Earnings: Kite Pharma reported wider-than-expected loss in the fourth quarter of 2014. Our consensus called for a loss of 16 cents per share, while the company reported a loss of 19 cents (these figures take out stock option expenses).


Revenue: Kite Pharma did not generate any revenues in this quarter.


Key Stats: In Dec 2014, Kite Pharma submitted an investigational new drug application to the FDA to conduct a phase I/II study on KTE-C19 for the treatment of refractory aggressive non-Hodgkin lymphoma. The company intends to initiate a pivotal study on KTE-C19 for DLBCL in the first half of 2015. Since KTE-C19 is the lead candidate in the company’s pipeline, investor focus should remain on development updates on the candidate.


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