The company denies that it was responsible for the death, and shares recovered somewhat after the CEO vigorously defended the trial.
Kite Pharma’s shares are back up — somewhat — after taking a steep tumble last week as the company fights accusations that it is to blame for the death of a patient.
A cancer patient did indeed die during a trial of its KTE-C19 cell therapy treatment for non-Hodgkin’s lymphoma sufferers, Kite CEO Arie Belldegrun said during a conference call with analysts, but it had nothing to do with the treatment, according to a Los Angeles Times report.
Belldegrun argued that an in-depth review was conducted that looked into the death and found no evidence that the cell therapy treatment was responsible, and that the Food and Drug Administration has allowed the clinical trials to continue unabated. There is further no evidence than any other regulatory agency will step in, he added.
Shares of the company plummeted 19 percent at one point on Thursday after news of the death resulted in concerns about a delay in the trial, but they rebounded somewhat at the end of the day, and were up 4 percent on Monday, getting it closer to its Wednesday close, indicating that investors appear reassured by the comments. Belldegrun further added that Kite’s treatment, meant for non-Hodgkin’s lymphoma sufferers who have a poor prognosis, has been an amazing success, literally melting away tumors within weeks.
The fact that Kite has been so forthcoming with its clinical trial results is very unusual in the pharmaceutical industry with an ongoing trial, which indicates just how much the company has been affected by rumors that the patient death would have a major impact on its treatment. In fact, the company plans to release even more details at an annual meeting in Florida later this year.