Were emphasizing the knowable by predicting how certain people and companies will swim against the current. Were not predicting the fluctuation in the current. – Charlie Munger
Welcome to this edition of Integrated BioSci Rounds Report for April 27, 2018. As usual, well elucidate notable trading analytics for the day, recent insider transactions, and interesting market developments. Without further ado, lets take an overall assessment of the bioscience space. As follows, the iShares of NASDAQ Biotechnology Index (NASDAQ:IBB) traded up $0.31 (+0.29%) at $105.61. Moreover, the SPDR S&P Biotech (NYSE:XBI) exchanged hands $0.58 higher at $88.42 (for +0.66% gains). Its likely that investors were trading with a more positive sentiment for the day. Regardless of the daily inclination, there are substantial prospects in the bioscience sector: one that delivers hope for patients while rewarding supporters with substantial wealth in the long haul.
Figure 1: Notable BioSci movers. (Source: Morningstar)
Moving to specific equities, Eleven Biotherapeutics (NASDAQ:EBIO) – a company focusing on the innovation and commercialization of the novel molecules, Targeted Protein Therapeutics (TPTs) – won the highlight for the day. Following a strong momentum this week, the shares exchanged hands $0.16 higher to close the session at $2.51 (for over 6.8% profits). In addition, the stock added over 31% and 130% for the past week and previous month, respectively.
Of note, TPT is a fusion drug (an antibody linked a cytotoxic protein payload that, in and of itself, is designed for the localized cancer destruction). The said antibody zones in on specific cancer cells while the cytotoxic protein kills rogue tumors. Interestingly, TPT can be employed as either a promising single drug or in combinations with other immuno-oncology agents such as checkpoint inhibitors.
Interestingly, Eleven commenced a trial at the US National Cancer Institute (NCI) back on Sept. 2017 to study the prospects of Vicinium – a protein coupled with an antibody to attack EpCAM positive tumor – in combinations with AstraZeneca (NYSE:AZN)s immune checkpoint inhibitor, Imfinzi for high-grade non-muscle invasive bladder cancer (NMIBC). If the data turns out robust as we anticipated, AstraZeneca is likely to acquire the company. That aside, the VISTA trial investigating Vicinium as a monotherapy for NMIBC will report the topline results in several months. There is a favorable chance that this clinical binary to post positive outcomes to catapult the shares over 80%. Be that as it may, there is a risk that the shares can tumble by similar the magnitude.
On April 26, 2018, Achaogen (NASDAQ:AKAO) announced that it has entered into an award agreement with CARB-X. Under the terms, Achaogen to receive the initial $2.4M (and potentially $9.6M more, pending on certain milestones achievement). As a company featured in our Specialty Report, Achaogen seeks to develop and commercialize the next-generation antibiotics (to service multi-drug resistant gram-negative infection).
Notably, the aforementioned collaboration to assist the company in innovating a next-generation broad-spectrum aminoglycoside that can circumvent the highly resistant gram-negative bugs such as Enterobacteriaceae, Acinetobacter baumannii, and Pseudomonas aeruginosa. It is interesting to realize that in 2017, the World Health Organization recognized multi-drug resistant P. aeruginosa, A. baumannii and various Enterobacteriaceae as priority 1 critical pathogens that pose the greatest threat to human health.
In all, the market finished the week on a positive tune. Notable companies either rode this rays of optimism or made our featured list today include Eleven Biotherapeutics and Achaogen. Its highly likely that Eleven bulls will continue to charge ahead of the clinical binary for Vicinium. That aside, the recent CARB-X award is a testament to the quality of Achaogen antibiotics.
Authors Notes: Were honored that you took the time to read our market intelligence. Founded by Dr. Hung Tran, MD, MS, CNPR, (in collaborations with Analyst Vu, and other PhDs), Integrated BioSci Investing (IBI) is delivering stellar returns. To name a few, Nektar, Spectrum, Atara, and Kite procured over 344%, 114%, 200%, and 83% profits, respectively. Our secret sauce is extreme due diligence with expert data analysis. The service features a once-weekly exclusive Alpha-Intelligence article, daily analysis/consulting, and model portfolios. Of note, there is an IBI version of this article that is a higher-level intelligence with extensive details, in which we published in advanced and exclusively for our subscribers. And, we invite you to subscribe to our marketplace now to lock in the current price and save money for the future.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I like to inform our readers of Seeking Alpha’s recent policy change, in which the company implemented the paywall (not only to my articles but to all articles that are published over 10-day). This is in place, as the company is, after all, a business. And, the revenues from ads are not adequate to support the high-quality research that the company is providing. If you are a REAL TIME FOLLOWER, you will be notified immediately of our new research for you to continue to benefit from our due diligence. You can also gain access to all of my old articles and much more by taking the 2-week FREE trial of my marketplace, Integrated BioSci Investing.
Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.