Updated on 6/02/20
Click here to view Chris Stang, PharmD’s ‘Readers Choice’ article and vote, and which stock you would like him to write a report on (LPTX, BDSI, KTOV, or MNLO)!
Click here for Sultan’s update on DelMar Pharmaceuticals (Nasdaq: DMPI)
PT= Price target (our approximate exit price)
Unless stated otherwise, the price next to the ticker is a suitable entry price.
Let us know if you are not receiving SMS text alerts (email@example.com)
|Market Performance 6/02/20|
The market extended its rally today despite ongoing civil unrest over the death of Floyd George. Analysts have rationalized this by the fact that the market is more fixated on material events surrounding the reopening of the economy. To our surprise, the S&P 500 is only 20 points away from its all-time-highs before COVID stuck. Moreover, oil which got wrecked in May hit a 3-month high today in hopes of supply cuts. Because the economy is not fully reopened (in the U.S and abroad) it does make sense for the market to fully recover. Thus, we expect a new range to found, the ceiling of which is yet to be determined. Nonetheless, we will continue investing/trading in our market niche (biopharma).
Economic data to come:
1) ADP nonfarm Employment Change (Improvement expected)
2) ISM Non-Manufacturing PMI (Improvement expected)
3) Crude Oil Inventories (Improvement expected)
1) U.S Nonfarm Payrolls (Improvement expected)
|Futures as of 7:19 PT, 6/02/20|
Holding BCRX, LJPC, NGM, GRTS, RAPT (Core Positions). Core Positions = stocks with the most attractive risk vs reward profiles. We concentrate our capital in these stocks and swing and day trade other stocks with`~1-10% of our total portfolio value.
Holding VBIV looking to exit at $2.20+.
Holding EOLS. Monitoring to exit.
IMGN reported impressive initial Phase 2 data ASCO on 5/29/20. It’s in an uptrend. The next target is $5.50 assuming the trend holds. Take gains anytime
Stocks we are monitoring for swing/day trades on 6/02/20
1) XSPA $.89
- A pure-play health and wellness company (operates premium spas out of airports)
- On 5/22 landed a contract with JFK airport to pilot test a new arm of its business which will be providing COVID testing
- The press release stated that a formal announcement would be made in the coming weeks with more information. The CEO hopes the pilot test site will serve as a model in other U.S airports
- Good technical set-up; closed above the 200-day SMA. Positive news could send it soaring.
- Has completed 3 direct at the market offerings since March
- PT= $1.20-1.50+
2) TTOO $1.07
- Commercial-stage medical diagnostic company. TTOO considers itself the leader in “the rapid detection of sepsis causing pathogens (such as COVID-19). This assertion is supported by the award of a multi-year Innovative Technology contract from Vizient Inc on 3/19
- On 3/24 the company announced a worldwide licensing agreement of a novel COVID-19 assay
- The company’s bacterial panel won the “Best Technology Solution”-Diagnostics awarded by the Medtech Breakthrough awards.
- Trading above the 20 and 50-day SMA; headed for the 200-day
- PT= $1.30+ (200-day SMA)
3) KPTI $18.07
- Commercial-stage oncology company with one approved drug Xpovio approved for use in patients with relapsed or refractory multiple myeloma in combination with dexamethasone.
- PDUFA on 6/26 under priority review
- Presented positive Phase 3 data at ASCO
- Submitted an sNDA on 5/20
- Trading significantly under the offering price of $24 in March
- Appears to have entered a trend reversal
- PT= $25
4) SLNO $3.49
- $4.0 got rejected today. Holding into tomorrow
- Late clinical-stage company focused on rare diseases with 2 Phase 3 studies in patients with genetically-confirmed PWS who are ages 4 years and older
- Its only asset DCCR has Orphan Drug Designation in the U.S and European Union as well as Fast Track designation in the U.S.
- If certain criteria are met, DCCR could be awarded accelerated approval which would significantly expedite the time to commercialization
- Phase 3 data is due 2Q20 (i.e. before 6/30)
- Completed a $15.4M public offering of 14.5M shares at $1.20 in October 2019. Prior to the offering, the company had ~$11M in cash. Per the 1Q20 earnings report the company has $15M in cash. For this reason, we assume they will raise capital again soon either through a public offering or another form of financing.
- Anticipating a pump from here into data
- PT= $4.0-4.50 (before data)
Core Position Updates
- The offering closed on 6/1 securing $115M
- Presenting at the Jefferies Virtual Health Conference on June 4th
- Presenting new data for lead asset berotralstat June 6-8 at EAACI
- Presented at the RBC Capital investor conference last week. A key takeaway was that BCRX is getting significant help from the government for developing galidesivir for COVID-19 Click here for the webcast
- Participated in a conference hosted by Band of America earlier this month as well. Click here for the webcast
- Reported strong earnings on 5/6/20. Highlights from the report were positive phase 1 data for their Factor D inhibitor, remaining on track for 3 commercial approvals for their lead asset, and the expansion of their COVID-19 trials to 4 sites in Brazil.
- Click here and go to hour 1.47 to hear Dr. Esper Kallas (the lead investigator BCRX’s CV19 clinical trial) talk a little about Galidesivir as a potential treatment for CV19.
- Dr. Dena Grayson mentioned Galidesivir during an interview on Fox News this weekend. She mentioned she spent years developing it and that its currently being tested in a clinical trial in Brazil as a potential CV19 treatment.
- FDA awarded Emergency Use Authorization (EUA) for GILD’s Remdesivir for treating CV19. Galidesivir is a similar antiviral but as we argue is chemically and structurally superior
- PT= $8-10+
- Announced today that a commercial restructuring plan to focus the company’s resources on Giapreza was approved by the board. Per the restructuring plan, the CFO and CSO are leaving the company.
- Made strong move up gaining +9% on high volume (1.5M shares)
- LJPC declined over 30% after Amivas LLC beat LJPC to punch in getting Artesunate approval. Click here to read more (BCRX discussed in this article too)
- Reported 1Q20 earnings on 5/4/20. Highlights were significantly reduced operating costs, a beat on EPS by a wide margin, and healthy revenue growth from Giapreza.
- Click here to read our 1Q20 update on LJPC
- Half of the patients included in an Italian study were given Giapreza.
- Since 3/13/20 Giapreza has been made available by request at hospitals in the UK, Germany, Belgium, and Italy for the treatment of septic shock associated with COVID-19.
- A potential near-term catalyst is if the company announces a commercial partnership in Europe where Giapreza was approved in late 2019.
- PT= $10-15 (3-12 months)
- Presenting at two upcoming investor conferences (Jefferies on 6/3 and Goldman Sachs on 6/10). Click here to access the webcast.
- Reported 1Q20 earnings on 5/13 showing $328m on hand.
- Has a deep clinical pipeline with 6 assets targeting diverse indications of high unmet needs. Phase 2b data in patients with NASH cirrhosis is expected 1H2021
- Since 4/1/20 insiders (the Column Group) have collectively bought 1.5M shares of NGM at an average price of $13.94. They now own 17.7M shares (~30% stake)
- PT= $30+ (0-12 months)
- Still patiently waiting for a pump into its data catalyst mid-year
- Reported 1Q20 earnings on 5/7/20. Highlights include anticipated phase 1 efficacy data mid-year, initiating two Phase 2 studies, and plans to nominate a new clinical drug candidate.
- Appointed a new director to the board recently with an intriguing background as an executive in the healthcare investing arm of Pfizer as well as private healthcare-focused venture capital firms.
- PT= $20 (3-12 months)
Just because a company is listed higher on the email does not necessarily mean its a better stock to trade. Trading stocks is risky. Part or all of an investment may be lost.
Our daily “Trade Ideas” emails are meant to give you ideas for swing and day trades. Returns we aim for are in the mid-single-digit to the double-digit range. Price targets (PT) are short-term in nature (i.e. a few days to a few weeks). Don’t be afraid to sell before the PT is hit if you are up on the position. Price targets are estimates.
Let’s get this bread!