Kitov Pharma (NASDAQ:KTOV) has seen the second-largest daily increase in the number of Robinhooders owning shares over the past 24 hours according to Robintrack. The number of Robinhood accounts holding Kitov stock jumped from 25k accounts to over 44k accounts, just behind Ideanomics (NASDAQ:IDEX), which we wrote up last week before the stock had the big move. As we take a closer look, we believe Kitov Pharma shares are setting up to make a major move.
The key with trading penny stocks is to find the momentum BEFORE it happens. We know some are looking at the chart of KTOV and think they have missed the move with shares off the 52-week lows of $.22 struck back in March. However, KTOV stock still has a long way to go before hitting highs of $7 back in 2016.
Our subscribers nailed KTOV for 62% gains back in 2017. We pretty much abandoned the stock as felt the gains that were to be had were over. As you can see from the chart above, we were right on the money to give up on Kitov Pharma. However, now we see the tide as turning, and now is the time to get back into Kitov Pharma for a number of reasons.
About Kitov Pharma
First up, here’s a little background info for investors that aren’t familiar with the company. Kitov Pharma is a clinical-stage company focusing on advancing first-in-class therapies to overcome tumor immune evasion and drug resistance, to create successful long-lasting treatments for people with cancer. Kitov’s oncology pipeline includes NT-219 and CM-24.
NT-219 is a small molecule targeting the novel cancer drug resistance pathways IRS1/2 and STAT3. Kitov is currently advancing NT-219 as a monotherapy treatment of advanced solid tumors and in combination with cetuximab for the treatment of recurrent or metastatic squamous cell carcinoma of head and neck cancer (SCCHN) in a planned phase 1/2 study.
CM-24 is a monoclonal antibody blocking CEACAM1, a novel immune checkpoint that supports tumor immune evasion and survival through multiple pathways. Kitov plans to advance CM-24 as a combination therapy with anti-PD1 checkpoint inhibitors in selected cancer indications in a phase 1 study followed by a phase 2 for the treatment of non-small cell lung cancer NSCLC and pancreatic cancer.
Kitov has entered into a clinical collaboration agreement with Bristol Myers Squibb Company for the planned phase 1/2 clinical trials to evaluate the combination of CM-24 with the PD-1 inhibitor nivolumab (Opdivo®).
Kitov is also the owner of Consensi™, a fixed-dose combination of celecoxib and amlodipine besylate, for the simultaneous treatment of osteoarthritis pain and hypertension that was approved by the FDA for marketing in the U.S. Consensi™ is being sold in the U.S. by Burke Therapeutics, the marketing partner of Kitov’s U.S. distributor, Coeptis Pharmaceuticals. Kitov has also partnered to commercialize Consensi in China and South Korea.
The company is headquartered in Tel Aviv, Israel.
Much of the speculation surrounding the move on Monday in Kitov Pharma stems around that a press release is due to be dropped any day naming the company’s collab partner for NT-219. Most of the rumors surrounding this point to Merck as the ideal partner. While we cannot confirm or deny this rumor, the thinking is that since Merck already has a deal with Surface Oncology (NASDAQ:SURF) that they might not want to put all their eggs in one basket. Surface Oncology has an investigational antibody therapy called SRF617 which has some similarities to NT-219 but focuses mainly on gastric cancer (stomach mainly & esophagus) compared to head & neck for NT-219.
As you can see from the roadmap Kitov Pharma has laid out, a collab partner is due to be announced in Q2 2020, which ends next week.
Kitov Pharma Tweet
The theory surrounding Kitov Pharma and Merck really picked up steam when Kitov Pharma put out this tweet on Monday.
Proud to present the anti-tumor activity of NT219 in pembrolizumab-resistant head and neck cancer PDX models at AACR 2020 virtual meeting II #Cancer #AACR2020 #keytdura #oncology #headandneckcancer pic.twitter.com/IogoLELn7r
— Kitov Pharma (@Kitov_Pharma) June 22, 2020
As Kitov Pharma said in their last press release back in May:
In previously completed preclinical studies, NT219 has demonstrated compelling anti-tumor activity, as both monotherapy and in combination with cetuximab. Most recently, in an abstract published at the American Association of Cancer Research Virtual Meeting II website, positive preclinical data were presented showing that NT219 demonstrated growth inhibition, both as monotherapy, as well as in combination with cetuximab or pembrolizumab, a programmed cell death protein 1 (PD-1) inhibitor, in multiple patient-derived xenograft models of subjects with head and neck squamous cell carcinoma.
Pembrolizumab is Merck’s Keytruda. If NT-219 is working well with pembrolizumab, why wouldn’t Merck be the collab partner? A pharma company goes with what’s working and as you can see, it’s working.
The company will collaborate with Bristol-Myers Squibb on a Phase 1 study of CM-24 in combination with BMY’s Opdivo (nivolumab) for non-small-cell lung carcinoma and pancreatic cancer. The study is expected to begin in Q4 with data expected in H1 2021.
The FDA has signed off on its IND for NT-219, as monotherapy or in combination with Erbitux, for the treatment of recurrent or metastatic solid tumors and head and neck cancer. Phase 1 data are expected in H1 2021.
Multiple data readouts are expected within 15 months.
Kitov Pharma Short Squeeze Coming?
Even after Monday”s move, 20% of the float has been sold short by the bears. This is a very high short interest and combined with Robinhooders jumping on board, we could be looking at an epic short squeeze.
Currently trading with a market cap of just $79 million, Kitov Pharma checks off all the key boxes when it comes to finding the next big runner. All it will take is Merck or Bristol-Myers to just buy Kitov Pharma. An acquisition of Kitov Pharma is mere pocket change for big pharma. Since Kitov Pharma insiders own 5% of the company, they won’t sell for cheap. Back in 2017, Wainwright had a $10 price target for KTOV. While it would be a few years late, it is still likely if NT-219 meets all endpoints.
As always, good luck to all(except the shorts)!
We will be updating our subscribers as soon as we know more. For the latest updates on Kitov Pharma, sign up today!
Disclosure: We have NO position in NASDAQ:KTOV or any of the stocks mentioned and have NOT been compensated for this article.