Updated on 5/28/20
Click here to read Chris Stang, PharmD’s research on Zynerba Pharmaceuticals (Nasdaq: ZYNE)
Click here for Sultan’s update on DelMar Pharmaceuticals (Nasdaq: DMPI)
Click here to read your guide to the American Society of Clinical Oncology (ASCO) conference written by Chris Stang, PharmD. ASCO is a major medical conference where oncology companies showcase their clinical data. Conferences like ASCO are often major catalysts for clinical-stage biotech companies.
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|Market Performance 5/28/20|
Markets slide a little bit into close today on investors fears of Trump potentially prepping to hit China. He announced that he will be holding a press conference on Friday in regards to China, leaving investors to speculate on the potential updates. This comes after news of China tightening control on Hong Kong, a historically important focal point for the global community. In addition to these updates, investors are mulling over the potential implications of Trump’s remarks on social media and firms such as Twitter. These remarks are looking back at Section 230 of the Communications Decency Act, an act which he argues allows a select few firms such as Twitter to limit free speech and with it the scope of news and stories people are able to view. The implications of this if passed put some uncharted waters in place for tech giants as this would expose them to significantly more legal risk with the content and moderation of content on their platforms. It appears that investors are becoming familiarized with the tumultuous COVID data, focusing eyes on the evolvements with China. Be sure to tune in tomorrow with fellow investors to see what updates we are provided!
|Futures as of 8:42 pm PT, 5/28/20|
Holding BCRX, LJPC, NGM, GRTS (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.
Considering moving some money from LJPC into BCRX pending market conditions. This is because we see greater potential in BCRX in the immediate term. Furthermore, we are looking at taking profits from NGM.
Stocks we are monitoring for swing/day trades on 5/26/20
- A bearish biotech ETF (goes up if bio sells off)…
- Sector rotation has been going on where many institutions are moving their money out of bio into other sectors as the economy reopens
- Bio has is near its all-time highs and the sector as a whole should experience a short-term decline
- PT = $5.30+
2) EOLS $5.40
- Started a position here today. The stock is trading like it’s under accumulation.
- The company’s commercial product ‘Jeaveu’ neurotoxin that proved non-inferior to Botox in a head to head clinical trial
- The CEO has maintained that he expects Jeaveu to acheive the number 2 market position behind Botox within 2-years.
- The market is neurotoxin market is estimated to be worth $7.5B by 2026
- The biggest near-term risk is the initial ruling by the ITC judge handling the lawsuit pertaining to the IP of Jeaveu which is anticipated to be in 2020
- PT= $10
3) LCTX $.93
- Clinical-stage biotech company developing cell therapies to treat unmet medical needs
- Applied for a grant from the California Institute of Regenerative medicine to apply one of its cell therapies toward the development of a COVID vaccine
- Multiple non-COVID related data readouts/updates planned for 2020 Seeking to strengthen its existing institutional partnerships, forge new ones, and secure non-dilutive financing
- PT= $1.20-1.70
4) AIM $2.50
- Had a strong close today above the 100 day SMA near the high of the day
- Their lead asset Ampligen is being used in studies for efficacy on COVID including Japan’s National Institute for Infectious Diseases.
- Conducting a Phase 1/2b study in the U.S. testing the combination of Ampligen and interferon alfa-2b in cancer patients with COVID.
- Anticipating further upside with more COVID based news, monitoring for a little more pullback for reentry
- PT = $3.0
Core Position Updates
- Traded well above the offering price of $4.50 most of the day but ultimately closed at $4.50.
- Announced after hours today that the company will be 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+
- Declined another 7% today. The company is definitely mispriced and we have maintained our position. We are considering moving some of our position from LJPC into BCRX because of the greater immediate-term potential it has. Even though LJPC is still a sound investment, it’ll take a little time for the bad news to wear off.
- The bad news: 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)
- We have made some good money on NGM and are considering pulling some profits. We see a bright future for NGM but their next big data readout is not until early 2021 (some updated data in August).
- 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)
- 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.
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