March 2, 2020
This Biotech Stock Broke Out As A Cancer Drug 'Transforms' Its Story
by ALLISON GATLIN,Investor's Business Daily
This Biotech Stock Broke Out As A Cancer Drug 'Transforms' Its Story
Karyopharm Therapeutics (KPTI) unveiled promising results for a late-stage cancer treatment on Monday — prodding KPTI stock to rocket and break out.
The biotech company studied a regimen of three drugs in patients with multiple myeloma, a type of blood cancer. In the Phase 3 study, patients who received the regimen survived without progressing for a median 4.47 months longer than those given a two-drug combination.
Analysts are bullish on Karyopharm and a key drug in the regimen, Xpovio. RBC Capital Markets analyst Brian Abrahams said the news "transforms" the story around KPTI stock. He reiterated his outperform rating on KPTI stock.
"We continue to see significant opportunity for (Xpovio), not fully appreciated in Karyopharm's valuation," he said in a note to clients. "We model $200 million-plus global sales opportunity for (Xpovio) in its existing late-late multiple myeloma indication."
On the stock market today, KPTI stock soared 69.7%, 27.72, in massive volume.
KPTI Stock Rockets On Test Results
Specifically, Karyopharm tested a regimen of Xpovio, Takeda Pharmaceutical's (TAK) Velcade and a drug called dexamethasone. Patients took the regimen once a week. Their results were tested against a group of patients taking Velcade and dexamethasone twice a week.
Both groups of patients had received one to three prior cancer treatments for multiple myeloma.
At the median, patients on the three-drug regimen survived for 13.93 months without worsening symptoms. Patients taking the two-drug cancer treatment — the standard of care — survived for a median 9.46 months before worsening.
The three-drug cancer treatment also proved to be safe, which is a boon for KPTI stock.
"Overall, the positive (study called Boston) is in line with our expectations, although we'll wait for a presentation of the results at an upcoming medical meeting for more study details," SVB Leerink analyst Jonathan Chang said in his report to clients.
He boosted his price target on KPTI stock to 30 from 22, and kept his outperform rating.
Cancer Treatment Could Expand Sales
Next, Karyopharm plans to ask regulators in the U.S. and Europe to approve the use of the three-drug cancer treatment regimen. If approved, it would be the only combination that includes once-weekly Velcade for relapsed multiple myeloma, Karyopharm says.
Xpovio already has Food and Drug Administration approval to treat multiple myeloma in patients who've received at least four prior cancer treatments. The current market for Xpovio in this patient group is about 6,000 people, Karyopharm said in an email to Investor's Business Daily.
This new cancer treatment regimen would increase the patient population to about 32,000, the biotech company said.
"Karyopharm is also the first 'small' pharmaceutical company to develop and gain approval for a drug in the treatment of refractory multiple myeloma, and competes against much larger pharma companies," the biotech company said.
Other companies targeting multiple myeloma include Takeda, Amgen (AMGN), Bristol-Myers Squibb (BMY)-owned Celgene and Johnson & Johnson (JNJ). Xpovio was the first new drug for multiple myeloma to gain FDA approval since 2015.
Notably, results of the study Monday helped KPTI stock to surge above a buy point at 20.19 out of a consolidation. Shares of KPTI stock have a best-possible Relative Strength Rating of 99. The RS Rating tracks a stock's 12-month performance.
http://www.investors.com/news/technology/kpti-stock-rockets-cancer-treatment-passes-muster/?src=A00220&yptr=yahoo