Analysts Say Juno's Stock Tumbles Shouldn't Spill Over To Bluebird, Kite Pharma Shares

By Markets MarketWatch Pulse

Bluebird Bio Inc.'s stock slumped 2.5% and Kite Pharma Inc. shares shed 4.2% in morning trade Wednesday, in the wake of peer Juno Therapeutics Inc.'s halted drug trial. Analyst Debjit Chattopadhyay at Janney Montgomery Scott said the selloff in Bluebird's stock is "unwarranted" because even though the company and Juno have a similar class of treatment for cancer, there are significant differences in "preconditioning regimens" and doses. RBC Capital analyst Michael Yee said he expects Kite shares to recover, because despite a similar class of treatment, Yee said he believes Kite has treated more patients across its programs with no issues. Chattopadhyay reiterated the buy rating on Bluebird and Yee maintained the outperform rating on Kite. Meanwhile, Juno's stock plunged 31% to a record low. It has plunged 53% year to date, while Bluebird's stock has lost 6.6%, Kite shares have dropped 18% and the S&P 500 has gained 7.5%.

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