The key with trading penny stocks is to find the momentum BEFORE it happens. We know some are looking at the chart of KTOV stock 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.
We called last month’s big move when we said that KTOV stock checked off all the key boxes to becoming the next big runner, which you can read about here. Now that shares have settled back under $1, we believe another big run is coming. We think this run could send KTOV stock to new highs as the shorts have now shorted over 43% of the float compared to 20% in June. All it takes is one pr or big news out of the August 6th meeting, and we are going to see a massive short squeeze. As we take a closer look, there’s a lot to like with Kitov.
About KTOV Stock
First up, here’s a little background info for investors that aren’t familiar with KTOV stock. 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.
Bristol-Myers Collab With KTOV Stock
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.
According to the agreement for CONSENSI, Kitov is eligible to receive up to $99.5M in milestone and reimbursement payments, in addition to royalties. Aggregate milestone and royalty revenues are seen between $28M and $36M from 2020 through 2022. With continued support for CONSENSI distribution partners, the drug is expected to generate royalty revenue of 20% of sales for Kitov in 2020. KTOV stock has a current market cap of just $130 million with $60 million in cash and no debt.
August 6th Meeting
The highlight this week will be the August 6th meeting. One of the items on the agenda is additional equity compensation for CEO Isaac Israel. This is a notable signal that he believes KTOV stock is undervalued. Insiders own just under 5% of the company and no doubt are looking for the big payday. We are also waiting for info on the collab partner for NT219. Speculation is that it will be Merck. NT-219 has proven to work well with pembrolizumab, which is Merck’s Keytruda.
KTOV stock is getting ready to squeeze the shorts. We believe CEO Isaac Israel is looking to get his additional shares and then hit the tape with news. He also needs to get KTOV stock back trading above $1. We believe that will happen after the meeting and within the next 2-3 weeks. All we can say is buckle up and enjoy the ride.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:KTOV or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.