Hopeful News of the Week Gilead offers a vote of confidence in a new cancer treatment.
https://www.wsj.com/articles/hopeful-news-of-the-week-1504221301
Amid so much bad news out of Texas, our vote for hopeful story of the week goes to Gilead Sciences ’ bid to buy Kite Pharma Inc. for about $11 billion. That’s a big bet on a new type of cancer therapy based on genetically modifying a kind of immune cell known as T-cells.
Our Allysia Finley recently wrote about the so-called CAR-T treatment in an interview with Carl June, one of the cancer researchers behind the discovery. The treatment shows remarkable results in many patients, and the Food and Drug Administration on Wednesday approved the therapy for acute lymphoblastic leukemia.
Gilead, a leading biotech firm, is paying a steep price for Kite’s CAR-T technology. But Gilead has the means to do so thanks to the success of its Sovaldi drug in curing hepatitis C in thousands of patients. But other companies are also moving fast to exploit CAR-T treatments, including Novartis AG , and there’s no guarantee that Gilead-Kite will be first to market. That’s a risk for Gilead shareholders.
The exciting news for the rest of us, especially the many who will get cancer over our lifetimes, is the vote of confidence the merger signals for improving survival rates. Not too long ago academic and media scolds were dismissing U.S. drug research as providing little more than marginal gains. And major newspapers were claiming little or no progress against cancer. Now they’re fretting about the costs of breakthrough drugs that have the potential to cure deadly diseases.
Whether or not Kite works for Gilead as a business, it’s good to be reminded that drug research means taking risks in the hope of saving lives and making money in the process.
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