Juno Therapeutics (JUNO) Stock Will Rise Again, RBC's Yee Tells CNBC
NEW YORK (TheStreet) -- Juno Therapeutics (JUNO) stock will bounce back from its extreme lows, caused by the halt of one of its phase 2 clinical trials yesterday, RBC Capital Markets' Michael Yee predicted on CNBC's "Power Lunch" Friday.
Juno stock is trading lower by 30.96% to $28.18 on heavy volume late this afternoon, after the biopharmaceutical company's trial of chemotherapy drug JCAR015 was put on pause by the FDA due to the death of three patients.
About 15.76 million of Juno shares are changing hands so far today vs. the company's average 30-day volume of 1.44 million shares.
Juno shares are trading "as if its treatment, JCAR015, is dead, there's no hope for it," CNBC's Melissa Lee said to Yee, asking for his take on the situation.
The company will review its protocol and re-submit the drug to the FDA "and I expect that clinical hold to be reversed" Yee replied, which in turn will boost the stock.
"Actually if you go back and look at some of this, the way that drug works, some of that is actually not surprising although it sounds scary," Yee noted. Juno was using a high dosage of JCAR015 in its study.
Kite Pharma (KITE) stock will also make a comeback from trading lower. The rival pharmaceutical company is conducting its own clinical study on JCAR015, Yee explained.
Kite's study has not been halted and its researchers are using a lower dosage of the drug, so Yee does not "expect any issues there."
Kite stock is declining by 6.64% to $48.64 late this afternoon.