- Nkarta (NKTX) released potentially game-changing data from its “killer cell” anti-cancer research program.
- The share price got a sizable bump and could be headed much higher.
- Investors should consider trying a small position in NKTX stock after conducting their due diligence on Nkarta.
San Francisco-based biotechnology firm Nkarta (NASDAQ:NKTX) is known as a small but ambitious cancer research company. If you can handle the volatility, NKTX stock could be a worthy addition to your biotech portfolio.
Biotechnology stocks typically involve risk, as a single clinical research outcome could be make-or-break for the company and its stakeholders. As a result, loading the boat on Nkarta shares probably isn’t a wise thing to do.
On the other hand, a moderate position size is worth considering as NKTX stock looks like it’s in fast recovery mode. As we’ll see, a recent share-price jump was justified by some exciting clinical results from Nkarta.
Besides, by learning about Nkarta, you’ll gain insight into the fascinating world of “killer cells” in cancer research. The sky is truly the limit for Nkarta’s forward-looking science, and for investors who are in it for the long term.
What’s Happening With NKTX Stock?
With a peak price of $40.64 from the past 12 months, NKTX stock could potentially move much higher. Not long ago, it was trading at less than $8 before it leaped quickly to nearly $20.
Thus, Nkarta shares have room to run but still have strong upward momentum. Perhaps the stock fell from its peak last year because there wasn’t enough company-specific news to satisfy the investors — but it’s a very different story now.
First things first, though: what does Nkarta do, exactly? The company develops next-generation natural “killer cells” engineered to beat cancer.
These “killer cells” are highly active, cytotoxic cells. Through Nkarta’s platform, multiplex gene engineering is deployed to enhance immune cell performance. Thus, cytokine activation “using IL-12, -15 and -18” is engineered to “enhance anti-tumor activity persistence and memory-like properties.”
In the company’s most recently issued full-year financial press release, Nkarta President and CEO Paul J. Hastings predicted that 2022 would be a “catalyst rich year with clinical data milestones.” These milestones would, Hastings posited, involve initial results from Nkarta’s single-agent NKX101 Phase 1 clinical trial in 2022’s first half, as well as initial results from the company’s single-agent NKX019 Phase 1 clinical trial in 2022.
So, what results do we have so far in 2022 from these clinical research programs?
It’s great to report that Nkarta recently revealed positive preliminary data for both the NKX101 program and the NKX019 program.
This press release is what catalyzed the move in NKTX stock from sub-$8 to nearly $20. So clearly, something happened that got the investing community excited about Nkarta.
Here’s exactly what took place. In the NKX101 clinical trial, three of five patients with heavily pre-treated acute myeloid leukemia who received the higher dose level in a three-dose regimen, achieved “a complete response… with hematologic recovery.” Moreover, two of the three responses were minimal residual disease negative.
Meanwhile, in the NKX019 trial, three of six patients with r/r B cell malignancies, treated at the higher dose level in a three-dose regimen, showed a “complete response.” Plus, no dose-limiting toxicity was observed in either of the two trials.
These results, according to Hastings, “further validate Nkarta’s best-in-class [natural killer] cell platform” as the company seeks to “transform cancer treatment by bringing together the safety advantages of [natural killer] cells with an off-the-shelf modality designed to make the benefits of cell therapy accessible in a community setting.”
What You Can Do Now With NKTX Stock
Indeed, these clinical results do validate Nkarta’s vision of a safe and effective treatment for specific cancer types. The clinical trials aren’t finished yet, but the preliminary results are highly encouraging.
I give NKTX stock a “B” in my Portfolio Grader.
Now you know why NKTX stock got a nice bump, and you have deeper insight into Nkarta’s clinical progress. Thus, it’s fine to take a small position in Nkarta shares as further positive results could jolt the share price significantly higher.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.