At Last A Deal Sparks Biotech Rally: Gilead Buys Kite for $11.9B+…Update-1

Update11:30am Aug 28 Green Screen in Biotech Especially CAR-T Plays (BLUE,CLLS,JUNO)

NASDAQ up a tad 0.21%, but broad market flattish.

Biotech Deal Boosts ETFs: FBT up 2.71%, IBB up 1.53%, XBI up 2.53%.

Bellwether Celgene (CELG) up 1.4%.

AMGN up 1.24%, BIIB up 2.67%, GILD up 1.57%.

Mid-Caps: ICPT up 1.98%, INCY up 0.9%, JUNO up 18%, SGEN up 2%.

Speculative small caps are on a tear for example: ARRY, CLLS, EDIT, GLYC, KPTI, NTLA, XLRN, ZIOP etc.

Rayno Life Science Picks up: bluebird bio (BLUE) up 9%, FMI up 1.6%.

Novartis (NVS) down slightly another leading player in CAR-T and immuno-oncology

Healthcare sector is holding up well up 15% YTD despite pricing attacks.

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Gilead Sciences Pays $11.9B, $180/share, for Kite Pharma (KITE), a Leader in CAR-T Therapies for Cancer

Investors have been waiting for a sizable biotech deal from Gilead whose shares have been sagging from stalled HCV revenues and more competition. CAR-T (chimeric antigen receptor) has shown great promise for targeting blood cancers and KITE has  several products under development with its lead product (Axi-Cel) up for review for lymphoma (DLBCL) in November with potential approval in 2017.  KITE has no revenue but has a  broad pipeline for CAR-T as well as T cell Receptor immunotherapies. The acquisition gives Gilead a long term growth path into oncology although not without clinical risks.

Despite high prices expected for CAR-T therapies they are potentially more cost effective because of long term cures compared to existing cancer drugs.

See other Raygent articles on CAR-T.

Biotech stocks are broadly up, XBI up 2.8%. We will review markets at midday.

 

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