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Kite Pharma (KITE) Q2 Loss Narrower than Expected, Sales Beat


Kite Pharma, Inc. KITE is a development-stage company focused on the development of immuno-oncology treatments and is looking to revolutionize cancer treatments by engaging the body’s own immune system to treat cancer. Kite uses eACT to genetically modify T cells to express either CARs or TCRs. The modified T-cells are designed to recognize and destroy cancer cells. Immuno-oncology is a hot therapeutic area with huge commercial potential.

Kite Pharma’s lead drug axicabtagene ciloleucel is currently under priority review in the U.S. for treating aggressive non-Hodgkin lymphoma (NHL) with a FDA decision expected on Nov 29.

Axicabtagene ciloleucel is expected to be approved and launched in the U.S this year. In Europe, a regulatory application was filed last week with an approval and launch expected next year.

Meanwhile, axicabtagene ciloleucel is also being evaluated in other cancer studies as well. Kite Pharma is also developing other CAR-based candidates, including KITE-585 and KITE-718.

The company has a mixed record of earnings surprises. It delivered positive earnings surprises in two of the past four quarters and negative surprise in the other two, bringing the average surprise to a positive 2.07%.

Currently, KITE 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:

Loss Narrower-Than-Expected: KITE reported second-quarter 2017 loss of 1.94 cents per share, narrower than our consensus estimate of a loss of $1.97 cents per share.

Revenues Beat: Revenues in the reported quarter also beat expectations. KITE posted revenues of $10.05 million, compared to our consensus estimate of $9.23 million.

Key Stats: While Kite’s research and development expenses shot up almost 50% from the year-ago period to $70.9 million in the reported quarter, general and administrative expenses were $41.1 million, up 73.3% from the year-ago period.

Pre-Market Trading: Shares shot up 5.7% in pre-market trading.

Check back later for our full write up on this KITE earnings report later!

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