I could be wrong but since most hedge funds run net neutral books, that means that they must be short 50% of their holdings. There just are only so many things that qualify as good shorts... so you have a perfect setup here... great science and data but early with no triggers and excitement exiting JP Morgan that approached mania... so you had valuations extended and then the goldman initiation of Juno with a market perform (essentially a sell in analyst terms). All that is a recipe for a stock getting cut in 30% from its high. Kite and other CAR-T stocks will rise again when the news returns or their valuations can be justified by DCFs.
I feel this way too. I love the fundamentals of these companies but they are early. For example, fully commercial by 2020... that is a long time from now. And these stocks have all been sky rockets. They should correct in the absence of significant new news
I'm a long time biotech investor - and unless you are talking about GILD, BIIB, AMGN, CELG and other large cap biotechs with earnings - you are mistaken. These names are going up on the potential for exciting new therapys. Valuations will eventually start to matter again and if we ever get a broad market sell off, all the high beta names will be crushed as people withdraw their money from momentum mutual funds.
Very interesting. They had the CNBC medical consultant on. Very bullish on CAR-T. Not Cramer as much as the physician from NYU medical center. It's an exciting time for treating cancer!
I just checked an according to the KITE and JUNO websites both companies use autologous methods. So is there some other difference between the technologies?
I own BLUE and KITE and was thinking the same thing. I also think there is room for more than one company in this market given the numerous types of cancer they are targeting. KITE also is developing CAR-T for solid tumors which is not listed in JUNO's pipeline
Not to mention that KITE has the lead and is in Phase II and JUNO in Phase I. Also according to Cowen, KITE has strong IP. Don't know how that will factor. Does JUNO infringe?