Atara Biotherapeutics Inc (ATRA) Stock Tumbles After Seemingly Positive Phase 2 Clinical Trial for CMV-CTL Drug

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Atara Biotherapeutics Inc (NASDAQ:ATRA) shares are trading down significantly in early afternoon trading, even after the company announced what they seem to deem “positive” results from their Phase 2 clinical trial of CMV-CTL (Cytomegalovirus Targeted Cytotoxic T Lymphocytes. The company, which has been focused on creating several different treatments for life-threatening conditions currently has several candidates that they are working on for FDA approval, including PINTA 745, STM 434, ATA 842, EBV-CTL, WT1-CTL and the aforementioned CMV-CTL.

Atara Biotherapeutics Inc (NASDAQ:ATRA) anounced positive results for WT1-CTL in their Phase 1 Clinical Trial on Saturday, and just yesterday announcd positive results from a Phase 2 Clinical Trial of CMV-CTL. Patients showed a 73% response rate to the treament, of CMV-CTL.

As for WT1-CTL (Wilm’s Tumor 1 targeted Cytotoxic T Lymphocyes), 7 patients with relapse-refractory multiple myeloma were treated by the drug, following a alloHCT treatment. By one year, three of these patients were in complete remission, with 3 others either quite stable or seeing partial results.

Perhaps investors were hopeing for even better results as the stock is trading down quite a bit today.The stock is down 18.20% or $7.01 following the news, hitting $31.5 per share. Approximately 187,383 shares traded hands. ATRA shares have declined 6.55% since May 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 5.47%.

From a total of 4 analysts covering Atara Biotherapeutics (NASDAQ:ATRA) stock, 2 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $80 while the lowest target price is $38. The mean of all analyst targets is $59 which is 87.30% above today’s ($31.5) stock price. Atara Biotherapeutics was the topic of 4 analyst reports since September 9, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs initiated shares on November 18 with a “Neutral” rating. JMP Securities initiated ATRA stock in a recent report from September 25 with a “Mkt Perform” rating.

The institutional sentiment decreased to 4.57 in Q2 2015. It’s down 0.10, from 4.67 in 2015Q1. The ratio dived, as 9 funds sold all their Atara Biotherapeutics Inc shares they owned while 5 reduced their positions. 27 funds bought stakes while 37 increased their total positions. Institutions now own 26.30 million shares which is 18.24% more than the previous share count of 22.24 million in 2015Q1.

Ecor1 Capital Llc holds 18.7% of its total portfolio in Atara Biotherapeutics Inc, equating to 1.06 million shares. Baupost Group Llc Ma owns 4.81 million shares representing 4.23% of their total US portfolio. Moreover, Ghost Tree Capital Llc has 1.82% of their total portfolio invested in the company, equating to 100,000 shares. The California-based Redmile Group Llc has a total of 1.61% of their portfolio invested in the stock. 12 West Capital Management Lp, a New York-based fund reported 155,447 shares owned.

Since March 11, 2015, the stock had 0 insider buys, and 20 sales for a total of $5.57 million in net activity. Ciechanover Isaac E. sold 3,200 shares worth $82,726. Haqq Christopher sold 5,000 shares worth $209,961. Gallagher Carol Giltner sold 17,622 shares worth $746,090. Soffer Gad sold 16,489 shares worth $820,526. The insider Mcgrath John sold 6,000 shares worth $296,280.

Atara Biotherapeutics, Inc. is a clinical stage biopharmaceutical company. The company has a market cap of $998.03 million. The Firm is focused on developing therapeutics for serious unmet medical needs with an initial focus on muscle wasting conditions and oncology. It currently has negative earnings. The Company’s lead product candidate, PINTA 745 is a peptibody that binds myostatin and inhibits its corresponding signal transduction, thereby blocking the negative regulation of skeletal muscle growth.

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