Kitov Pharma (NASDAQ: KTOV) is making its way for the top early on this morning, and for good reason. The company announced the acquisition of an asset, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The asset acquisition;
- What we’re seeing from KTOV stock as a result; and
- what we’ll be watching for ahead.
KTOV Announces Asset Acquisition
As mentioned above, Kitov Pharma is having a great day in the market today after the company announced an asset acquisition. In a press release issued early this morning, the comapny announced that it has entered into an agreement to acquire FameWave Ltd.
FameWave is a privately held biotech company that is in the process of developing CM-24. CM-24 is a clinical stage monoclonal antibody targeting CEACAM1, a novel immune checkpoint.
As a result of the acquisition, KTOV said that it is planning on initiating a Phase I/II study in early 2020. The study will evaluate the safety and efficacy of CM-24 in combination with an anti PD-1 inhibitor.
In preclinical studies, CM-24’s mechanism of action in activating the immune system through multiple pathways has been validated. This was done by world renowned researchers at Harvard Medical School and MIT.
Also, additional preclinical studies showed that when combined with a PD-1 antibody, CM-24 results in a synergistic anti-cancer effect. In a statement, Isaac Israel, CEO at KTOV, had the following to offer:
Combining this transaction with our proprietary NT219 program, Kitov will become a clinical stage oncology company backed by the support of leading global life science funds. With the NT219 and CM-24 oncology candidates, we are opening an exciting future for Kitov and I’m looking forward to building on this momentum. We are very pleased that the investment and support of three leading global life science funds will enable Kitov to advance our clinical programs and expand our institutional investor base.
The acquisition of CM-24 is a tremendous opportunity for Kitov and our shareholders. We believe CM-24 has the potential to treat recurrent and advanced stage cancers including ovarian, colorectal, melanoma, lung, bladder and gastric cancers, and that our Phase I/II trial design could result in a strong display of the drug’s efficacy to the benefit of patients and their families. The journey Kitov started with Consensi™’s FDA approval and our recently announced distribution partnership for Consensi™ in the US, when combined with our plans to submit an IND for NT-219 in 2019 and the acquisition of CM-24, transforms Kitov into a robust immune-oncology development company.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Kitov Pharma, the news proved to be overwhelmingly positive.
With the announcement today, the company brings a new, valuable asset to its pipeline. As you could imagine, this is leading to excitement among investors and gains in the stock.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:16), KTOV is trading at $1.54 per share after a gain of $0.19 per share or 14.44% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on KTOV. In particular, we’re interested in following the story surrounding the company’s work with CM-24 as the asset seems to be a promising one. Nonetheless, we’ll continue to keep an eye on the news and bring it to you as it breaks.
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