Encouraging CTL019 data in paediatric r/r B-ALL

At ASH this weekend, Novartis presented data from its global registration trial (ELIANA) of CTL019 in relapsed/refractory (r/r) paediatric and young adults with B-cell acute lymphoblastic leukaemia (B-ALL). In one of the largest CAR-T trials to date, 41 out of 50 (82%) treated patients achieved a complete remission or complete remission with incomplete blood count recovery. These positive results have prompted Novartis to reaffirm its timelines for filing in B-ALL, with a submission to the FDA expected in early 2017 and to the EMA later in 2017. This data, along with the restated timelines, reinforce our forecasts for Oxford BioMedica (OXB), which manufactures and supplies the vectors that are utilised in CTL019. We value OXB at £173m (6.2p/share).