Israeli-founded pharma company Kite snapped up for some $11 billion

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CAR-T's side effects are generally manageable and tolerable when the patient has no other treatment options.

"All of these things lined up to convince us that now is the right time to get involved in this kind of therapy". In February, Kite Pharma announced that over a third of 100 patients in a trial of vehicle T therapy appeared free of lymphoma six months after receiving one treatment. Jefferies Group LLC set a $101.00 price target on shares of Kite Pharma and gave the stock a "buy" rating in a research note on Friday, May 19th. Those included environmental services company Clean Harbors, which rose $1.59, or 3.1 percent, to $52.98. Below is my takeaway on the transaction. The Firm is focused on the development and commercialization of cancer immunotherapy products to target and kill cancer cells.

Competition from Novartis and a handful of smaller biotechs with a focus on cell-based cancer therapies could get intense, but not almost as troubling as potential safety and manufacturing headaches are right now.

With the deal, Gilead would acquire Kite's new cancer-fighting method, which harnesses the body's immune system to attack malignant cells.

Located near the Los Angeles airport, the facility is expected to be capable of producing up to 5,000 patient therapies per year with a 14-day turnaround. Kite Pharma, Inc. disclosed in a document filed with the US Securities and Exchange Commission (SEC) that COO Butitta Cynthia M has sold 15,000 shares of Kite Pharma, Inc. While Gilead wants to expand axi-cel to National Hockey League patients with less advanced disease and other blood-borne cancers, the company says the business from the first indication-relapsed or refractory NHL-in large part should make the deal "revenue neutral" within three years, Milligan said.

Kite's axi-cel already produced stellar results in clinical trials that support an application under review by the FDA for the treatment of patients with non-Hodgkin lymphoma. Approval by the European Medicines Agency will probably come sometime in 2018. Buying Kite meets that qualification in terms of positioning the biotech in oncology.

Axi-cel will likely face steep and swift competition.

While the excitement around the launch of Kite's drug may hold off investor criticism for a while, peace and quiet is not worth $12 billion.

On Friday this week is the closely watched non-farm payroll data, while closer to now and today is global trade good data, which will be released later this morning and the Dallas Fed manufacturing report for August.

The deal, which has been approved by the boards of both companies, is expected to close in the fourth quarter of 2017. If said company has to extend that process (as will be the case if the FDA required additional trials on top of those used to underpin a registration application) the company will generally have to raise funds. The best use of Gilead's cash is in making more acquisitions that provide additional revenue relatively soon. For Q2 FY2017, the company reported revenues of just over $10 million compared with R&D costs of $71 million and a net loss of $110 million.

Kite has the potential to deliver outsized growth in the oncology space. That comparison, for Kite and others developing CAR-T products, is a key consideration for the field. After this sale, 18,664 common shares of KITE are directly owned by the insider, with total stake valued at $3,323,125.

I have thought for a while that a "string of pearls" strategy of acquiring multiple small and mid-sized biotechs could be a smart approach for Gilead Sciences. Novartis matches Gilead's financial heft and has more cancer expertise. It improved, as 106 investors sold GILD shares while 656 reduced holdings.

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