New home for KITE proceeds

For those who sold their KITE shares following the GILD buyout news, what have you done, if anything, with the proceeds of the sale?

I have used the cash to add to NVDA, ANET and my already oversized position in SHOP. I have been meaning to do so for some time now and this was a great opportunity for me to do so.

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I sold all my KITE shares yesterday. I posted about it here:

http://discussion.fool.com/immuno-oncology-companies-32819652.as…

I was really surprised that my post didn’t generate more discussion. I think people were more focused on whether to sell KITE immediately or wait.

I decided to sell. In fact, I almost sold all of my KITE last Friday! What a mistake that would have been. Fortunately, I only sold a portion. I used the proceeds to buy JUNO and I also used yesterday’s proceeds to buy JUNO. I have been talking with some people who know the space and they believe that the JUNO CAR-T program, while behind KITE in terms of market launch date, is a much better program. According to these sources, JUNO’s therapy has similar efficacy with MUCH lower toxicity. The toxicity, while not always fatal, causes serious complications which must be treated and are very costly to treat. My source believes that doctors will choose JUNO treatment over KITE treatment for this reason because it is much less taxing on the healthcare system. I think JUNO launch is about a year behind KITE.

Now, CELG has collaborations with both JUNO and BLUE. Since a) there are not that many CAR-T companies, b) they may pose a threat to the existing way that cancers are treated, and c) there are more big biotech and pharma companies than CAR-T acquisition targets, I believe that all CAR-T companies will be bid up and eventually taken out. Also, KITE investors will need a new home for their KITE proceeds; I believe many will invest in JUNO and BLUE. I like JUNO better than BLUE but BLUE is probably a good bet as well.

Chris

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Placed mine all in UBNT. Simple reason was UBNT was down 5%. If it bounces back in the normal course of fluctuation I will pull that out and wait for the next 3% drip in a holding. I like to take a small amount and hit these daily fluctuations within my holdings until I see a more compelling oppertunity.

Added after Kite sell:
CMG
TLND
SHOP
ANET
SQ

Wayne

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"I have used the cash to add to NVDA, ANET and my already oversized position in SHOP. I have been meaning to do so for some time now and this was a great opportunity for me to do so.”

That’s exactly what I did. Bought a little LGIH as well.

MC

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I sent some $$ to the red cross… holding the remainder in cash while I dust off/update the watchlist.

cheers
Nick

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sorry - meant to post the tickers too

looking to add/start

TWLO
HUBS
ANET
NVDA (new)
MOMO
BZUN
NVCR (new)
VEEV (maybe)

ClearBaffles,
Also looking at NVCR. Here is my challenge with it. Do date, I have not be able to find anything to indicate the technology can be improved to achieve better outcomes. If it can’t, eventually it will be surpassed. Yes, 5 year survival of glioblastoma of 13% over 4% is great improvement. But, it still isn’t great. Can they get to 40%? What about 10 year survival. All of the improvements I read about have to do w the size and conspiciousness of the device.

Now, I understand that there is potentially greater performance in other indications. But, at this point, who knows. Anything you have found on this matter?

BZUN has been a tough hold so far. Only had it a few weeks. Definitely like JD better at this point.

I think it may actually be time to take another look at IONS. In my opinion, spinraza was a game changer for them. Kynamro showed they could make a drug that worked. But, Spinraza showed they could also make a drug safe enough to widespread commercial use. Safety was always the big issue for them. Spinraza is given to infants. The results have been spectacular. Partner BIIB sold over $200 million in second quarter of sales. And they have another drug that achieved successful phase 3. The pipeline is stacked.

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I believe that in the 2nd half of 2017 IONS has 9 read outs on trials, so that is a potential catalyst for the stock.

Rob

They have a ton. It was all pretty meaningless until Spiranza. I still have a lot of work to do. But, my understanding is that when they run into trouble w their drugs. It usually has to do w lowered platelet counts. Through monitoring, they have been able to work through this pretty successfully, I believe. So, if this was the challenge that kept popping up consistently from drug to drug (actually not in Spiranza as far as I can tell), FDA should not have concerns w their new drugs if effective resolution has been demonstrated. And a lot of the diseases they are going after are straight killers.

Go to ions website and listen to the presentation they gave on 24th if you want to understand what Spiranza is achieving.

BTW, w today’s $40 million royalty, they have already collected $435 million from biib w the drug on the market for 2 quarters. Obviously most was milestone, not royalty. But, biib is incurring the cost. I need to study the deal. I remember none of the details. But, I think they get decent royalty too.

Treepak

on nvcr…
Another board sparked my interest initially. the new modality for treatment is what I’m excited about. I don’t have any particularly deeper insights than you… It’s possible their treatment is all voodoo but the doubled survival rates look legit. couple that with strong recent top line growth and… I’m considering a “looksee” sized position (1%). Something to compel me to dig more.

If this treatment works beyond brain cancers, the runway is potentially huge and, for that, I’m willing to set aside a little capital as a speculative play.

cheers

Nick