Daily medical broadcast ｜ ｜Moderna jumped to a record high after being included in the Standard & Poor’s 500 Index; Atosa fell for the second consecutive trading day after a sharp rise this year.
Daily medical broadcast
Editor | American Stock Research Society
The American Stock Research Institute launched the column "Daily Medical Broadcast" to provide you with the latest medical information and practical knowledge, and comprehensively interpret the trends of medical and health investment, financing and mergers and acquisitions.
Johnson & Johnson may put talcum powder debt in the new business of filing for bankruptcy.
Johnson & Johnson Company (new york Stock Exchange code: JNJ) According to a report from Reuters, the company is exploring a plan to transfer its debts in baby powder lawsuit to a newly established enterprise and then seek bankruptcy protection.
According to the report, Johnson & Johnson has not yet decided whether to actually implement the bankruptcy plan. It is unclear whether the company has hired a restructuring lawyer to help explore the bankruptcy plan.
The company faces legal proceedings by tens of thousands of plaintiffs, accusing its baby powder and other talc products of containing asbestos and causing cancer.
According to recent reports, FDA has begun to investigate why benzene, a carcinogen, was found in some samples of J&J Neutrogena and Aveeno brand sunscreens.
Moderna became the headline news of weekly health care winners; FibroGen and Biogen trails
Healthcare stocks in the Standard & Poor’s 500 Index rose after falling for three consecutive days, and closed down only about 0.2% this week, which was better than the decline of about 1.0% in the Standard & Poor’s 500 Index.
Moderna (Nasdaq: mRNA) rose about 23.0% this week, easily surpassing the market value of $100B due to the prospect of gaining a place in the Standard & Poor’s 500 Index.
From the record initial public offering in 2018 to the listing of some of the largest companies in the United States next week, the leader in COVID-19 vaccine development took less than three years.
Although Moderna led the gains in large-cap stocks, the nano-stock health technology company SCWorx (NASDAQ: WORX) rose by about 59.9%, setting a weekly best performance.
At the same time, FibroGen (NASDAQ: FGEN) lost about 45.8% because it failed to get the approval of the expert group appointed by FDA for the treatment of kidney diseases.
Micro-stock companies are dominated by Ayala Pharma (NASDAQ: AYLA), with a growth rate of about 45.4%, while IMV (NASDAQ: IMV) lags behind. The loss of 36.1% was driven by a capital increase of $ 25M, which ended this week.
Ada Gene (NASDAQ: ADAG), as a recent component of the FTSE Russell Index, rose about 31.3% this week, leading the small healthcare stocks. The clinical biotechnology company, which went public in February, announced a $20 million share repurchase plan last week.
The improvement of guidance in 2021 pushed InMode (Nasdaq: INMD) to lead the mid-cap stocks by about 10.0%. At the same time, Glaucus (new york Stock Exchange code: GKOS) dropped by about 25.5% after CMS proposed the reimbursement rate this week, indicating that the company’s products were greatly reduced.
10x Genomics (NASDAQ: TXG) dropped by about 10.1%, which was the biggest drop among large-scale peers, while Biogen (NASDAQ: BIIB) saw its share price drop by about 9.3% for fear that patients would accept the company’s newly approved treatment for Alzheimer’s disease.
Obtained the highest target price on Wall Street from a Wall Street analyst, Danaher (new york Stock Exchange code: DHR) ignored the guidance of smaller competitor Qiagen to cut back (new york Stock Exchange code: QGEN) and surpassed the big players with a weekly profit of about 2.6%.
Inevitably, Abbott Laboratories (new york Stock Exchange: ABT) fell behind by about 1.9%. However, the author of Seeking Alpha and Wall Street analysts agree that the company has a bright future.
Piper Sandler: Teleflex and Itamar sell off "too harshly"
On Thursday, Teleflex (new york Stock Exchange code: TFX) and Itamar Medical (Nasdaq: ITMR) announced the newly published reimbursement rates of the American Medical Insurance and Medicaid Service Center (CMS), indicating that the reimbursement rates of the company’s products have dropped significantly.
Today, after Piper Sandler analyst Matt O’Brien defended the two companies, Teleflex has recovered from losses for four consecutive trading days.
The interest rate cut is "eye-catching", but similar to the procedures of competitors, analysts believe that the overweight rating of stocks should be maintained.
O’Brien urged investors to take advantage of the weakness, saying that the selling was "too harsh" on the potential impact.
Layoffs may have a considerable impact on Teleflex’s Urolift and have a serious impact on doctors’ profitability. However, analysts added that the impact on Teleflex’s revenue and growth rate was only moderate.
At the same time, according to O ‘Brien, Itamar’s WatchPAT can remain profitable even at low interest rates, and the company points out that even if there are any cuts, the impact will be minimal.
After Glaucus (new york Stock Exchange code: GKOS) sold sharply on Wednesday, CMS proposed to reduce the reimbursement rate, and the company also recovered.
The FDA approved Belumosudil to treat graft-versus-host disease, and Kadmon traded at a higher price.
The share price of Kadmon Holdings (KDMN+18.0%) rose because the FDA granted Rezurock (Belumosudil) the marketing license of oral therapeutic drugs for chronic graft-versus-host disease (cGVHD).
According to the FDA website, Rezurock 200mg tablets have been approved. Belumosudil (KD025) is a selective inhibitor of Rho-related coiled helix kinase 2 (ROCK2), which has been given priority review by FDA for cGVHD.
In March this year, the company announced that the regulator had extended the review period of the therapy and set the date of FDA action as August 30.
Kadmon said that the purpose of extending the review period is to evaluate the additional information submitted by the company in response to the FDA’s request.
Regeneron spent $1.8 billion to expand its business in new york.
Governor Andrew Cuomo announced that Regeneron Pharmaceutical Company will invest $1.8 billion in the next six years to expand the park in Tarrytown, New York.
The expanded scope includes research, preclinical manufacturing and support facilities.
It is estimated that about 1000 new jobs will be created.
If Regeneron meets the recruitment target, the company will receive a tax credit of up to $100 million.
Update of REGENXBIO and Abeona on Arbitration of Licensing Disputes
Due to the dispute between RGNX +2.5% and Abeona Therapeutics, the arbitration tribunal has awarded 28 million US dollars in damages and about 6.1 million US dollars in interest (ABEO -2.2%) through the license agreement.
REGENXBIO said in a regulatory document today that if Abeona does not comply with the ruling, "the company expects to take appropriate measures to implement the ruling". It added that the exact time and amount of recovery were uncertain.
On May 2, 2020, the agreement was terminated because Abeona failed to pay $8 million, and the additional fee of $20 million payable by Abeona in November 2020 was paid within 15 months of the termination date.
However, in May 2020, Abeona filed a claim with arbitration, accusing REGENXBIO of violating some terms of the license agreement. Subsequently, in a counterclaim, REGENXBIO sought unpaid fees and interest totaling $28 million.
At the same time, Abeona said that before the arbitration decision, the two companies reached a settlement agreement, which, according to the company, "replaced the decision of the arbitral tribunal".
"Abeona intends to seek to implement the settlement agreement," the company pointed out in today’s 8-K document.
As Nasdaq trading began, Stevenato’s share price fell.
The stock of Steven ATO Group SPA ("STVN") got off to a bad start on the first day of trading on Nasdaq.
As of 1242p EDT, the share price fell by 15% to $17.85.
Last night, Stevanato, who is engaged in drug delivery products and diagnostic services, priced its initial public offering of 32 million shares at $21 per share.
Donovan Jones, who seeks Alpha author IPO Edge, is optimistic about Stevanto, pointing out that the company is growing rapidly, generating profits and having free cash flow.
Bristol-Myers Squibb settled the Spycel patent case with Reddy and Lupin.
According to Bloomberg News, Bristol-Myers Squibb reached a settlement with generic drug manufacturers Dr. Reddy and Lupin on the patent lawsuit of leukemia drug Sprycel (dasatinib).
Details of the settlement have not yet been announced.
Lupin’s settlement was submitted on Wednesday, but it has not been approved, and Dr. Reddy’s settlement was approved yesterday. Both cases were tried in a federal court in Trenton, New Jersey.
Bristol accused the two companies of infringing three of their patents by proposing Sprycel generic drugs.
Sprycel’s sales in 2020 will be about $1.3 billion.
Atosa fell for the second consecutive trading day after a sharp rise this year.
Atossa Therapeutics (ATOS -15.1%) is expected to lose money continuously today after losing more than one tenth on Thursday.
So far this year, the value of the stock has increased more than five times, which enabled the company to gain a place in the Russell 2000 and Russell 3000 indexes on June 28th.
This clinical biopharmaceutical company focuses on cancer treatment and infectious diseases, including COVID-19.
Last week, Atossa announced that Australian regulators had approved the start of a clinical study of AT-H201, which is the inhaled COVID-19 therapy developed by the company.
At the same time, a group of researchers led by Steven Quay, CEO of the company, published a study that emphasized the need to investigate the origin of COVID-19.
In the preprint, the team of scientists and data analysts concluded that the survey should assume that laboratory infections or research-related accidents are as likely to be the origin of the virus as pathogens jumping out of animals.
Tilray and other Canadian operators performed poorly due to the uncertainty of legalization of federal marijuana.
Senators said this week that the bill to legalize marijuana at the federal level proposed by Senate Majority Leader Chuck Schumer did not have enough votes to pass.
As the Cannabis Management and Opportunity Act faces an uphill battle to become law, the shares of multi-state operators and their Canadian competitors have sold off.
However, Canadian cannabis dramas such as Tilray (TLRY -2.1% ), HEXO Company (HEXO -3.3%), Aurora Cannabis (ACB -2.3%) and sundial growers (SNDL +0.6%) performed worse in the past five days.
Meanwhile, David Klein (CGC -1.8%), CEO of Canopy Growth, said in an interview with Yahoo Finance that the draft legislation was "very positive".
"For me, the bill may just represent the beginning or a new beginning of the legislative road to complete it," Klein said, adding that he hoped to see the gradual progress of federal reform.
In April, Bank of America cited the potential legalization of federal marijuana as the reason for its buy rating of Tilray and Canopy Growth.
China SXT Pharmaceuticals and Trinity Biotechnology lead the health care unit; FibroGen and Neptune health solutions among the main losers
Friday, July 16th
Winners: China SXT Pharmaceutical (NASDAQ: SXT TC)+37%, Sany Biotechnology (NASDAQ: TRIB) +11%, Modena (NASDAQ: mRNA) +9%, Aptevo Therapy (NASDAQ: APVO) +9%, Apollo Medical (NASDAQ: AMEH)+4.
Losers: FibroGen (NASDAQ: FGEN) -45%, Neptune Health Solutions (NASDAQ: NEPT) -20%, Atosa Therapy (NASDAQ: ATOS) -16%, Raven Pharmaceutical (NASDAQ: CRVS) -8%, alzas Mende Nerve (NASDAQ: ALZn).
Moderna jumped to a record high after being included in the Standard & Poor’s 500 Index.
After the Standard & Poor’s 500 Index announced on July 21st that the company would be included in the Standard & Poor’s 500 Index, the share price of Moderna (MRNA+9.7%) has reached its highest level since its initial public offering in 2018.
Moderna’s valuation has more than tripled in the past 12 months, because its COVID-19 vaccine has joined the global efforts to fight the pandemic under the authorization of global regulators.
In 2021, the company expects to provide 800 million to 1B doses of vaccine, and the goal in 2022 is to provide 3B doses.
Although competitors appeared in the COVID-19 vaccine competition, Moderna has increased by about 148.6% so far this year. As the chart shows, the sharp rise in the stock price coincides with the rise in Wall Street’s bearish rating on the stock.
At the same time, the authors of Seeking Alpha and Wall Street analysts agree with their neutral rating on the vaccine manufacturer.
FibroGen was affected by the downgrade, and Danaher gave the highest goal of Wall Street-the analyst action on July 16th.
After FDA’s setback to Roxadustat, FibroGen Court downgraded the rating.
Fiber Gene (NASDAQ: FGEN) lost about 35.7% before the drug went on the market because it was not approved by the FDA expert group to treat anemia caused by chronic kidney disease (CKD).
This setback triggered several downgrades on Wall Street.
Bank of America analysts headed by Jason Gerberry believe that this therapy has no way out in the US market. Analysts downgraded the stock from buy to neutral because the drug jointly developed by the company and AstraZeneca has no US royalty. The target price is lowered from $43.00 to $29.00 per share, which means a premium of about 16.7%.
Meanwhile, Annabel Samimy, an analyst at Stifel, lowered her holding advice from buy and lowered her target per share from $55.00 to $29.00.
At the end of last month, FibroGen received a positive evaluation from the European Medicines Agency (EMA) and was used to treat anemia caused by CKD with Roxadustat.
Zoetis lowered Raymond James’ valuation.
Noting that the company’s share price has risen by 30% since the beginning of March, Raymond James downgraded Zoetis (new york Stock Exchange code: ZTS) from outperforming the market to market performance.
As the largest participant in the animal health industry, Shuo Teng is the representative of industry sentiment and valuation, the analyst wrote. "Our downgrade was carried out before the more uncertain and possibly slowing growth after the pandemic."
Earlier this week, despite the changes in the rating of the animal health sub-industry, Guggenheim kept the buy rating of Shuoteng unchanged.
Oppenheimer is bullish on Nkarta
Nkarta (Nasdaq: NKTX) has an advertisement DED? 6.7%, after Oppenheimer started to cover the overweight rating in early trading. The target price of $75.00 per share means a premium of about 150.2%.
Analysts note that natural killer (NK) cell therapy has potential compared with currently available T cell therapy, and he points out that Nkarta is the only listed biotechnology company focusing on new technologies.
The company saw the purchase opportunity before the first human data of NKX101 acute myeloid leukemia (AML). Nkarta said in May that the preliminary clinical data of the ongoing NKX101 trial is expected to be released before the end of 2021.
Cryoport is BTIG’s new acquisition of the prospect of cell and gene therapy.
BTIG analyst David Larsen initiated a report on Cryoport (Nasdaq: CYRX) with a buy rating. The analyst pointed out that the company has the potential to benefit from the estimated annual growth rate of more than 30% in the field of cell and gene therapy in the next decade.
The target price of $80.00 per share indicates a premium of about 48.7%. According to Larsen, with "a series of shippers" and the technology to track their journey, the company has the ability to provide ultra-cold supply chain logistics for cell and gene therapy products.
In June, Cryoport fell from Russell Micro Capital Index.
Danaher wins Benchmark’s highest street goal
Benchmark analyst Robert wasserman estimates that Danaher’s street price target of $330.00 per share (new york Stock Exchange code: DHR) means a premium of about 17.5%. The analyst cited the downwind brought by large acquisitions and the demand for products related to Covid.
Wasserman wrote that the company should benefit from its $21 billion acquisition of GE’s biopharmaceutical business, and pointed out that the company’s $1 billion expenditure was aimed at expanding the production capacity of some of its health-related businesses, thus bringing growth opportunities.
Wasserman also expects Danaher’s acquisition of Aldevron to be completed next year. In June, the company agreed to pay $ 9.6B for the acquisition of privately held Aldevron.
Needham saw the buying opportunity of cardiovascular system.
Cardiovascular system (NASDAQ: CSII) This figure dropped to a two-month low after the CMS doctor’s fee schedule proposed a 22% reduction in peripheral atherosclerosis resection.
In response, Needham quoted the buying opportunity of the company’s stock. He wrote: "Even if there is a reduction, we don’t think it will have much impact on CSII (if any)."
Mike mattson, an analyst, expects to be opposed by the medical association during the public consultation period. He thinks that the final rules expected later this year may be different from the proposal.
Needham gave Cardiovascular Systems a buy rating with a target price of $50.00 per share, which means a premium of about 38.9%. Wall Street has bought six times, held four times and sold zero, and is optimistic about the stock as a whole.
Unless otherwise specified, all stock price movements are based on the market closing price.
Bristol-Myers Squibb’s Opdivo combination failed to achieve the main goal of advanced cancer trials.
Bristol-Myers Squibb (new york Stock Exchange code: BMY) announced that its late trial of Opdivo, a heavy anticancer drug, failed to meet the needs of patients with recurrent or metastatic head and neck squamous cell carcinoma (SCCHN) as the main end point of first-line treatment.
The company said that among the patients whose tumor expressed PD-L1 and whose comprehensive positive score (CPS) CPS) ≥ 20, the combination of Opdivo and Yervoy showed an obvious and positive overall survival (OS) trend, but pointed out that the study did not meet its main end point.
The safety of combined drugs in this trial is consistent with the previously reported solid tumor research.
"We are disappointed that these results are not statistically significant, and we are still committed to promoting research and supporting patients with this refractory cancer," said Abderrahim Oukessou, vice president and development leader of Bristol-Myers Squibb chest cancer.
The company will complete a comprehensive evaluation of the data and cooperate with investigators to share the results.
The stock price fell nearly 1% before the market.
TScan Therapeutics, a cancer biotechnology, priced 6.7 million IPO shares at $15.
TScan Therapeutics (TCRX) has priced its IPO of about 6.7 million common shares at $15.00/share, with a total revenue of $100 million.
The company initially applied to issue 6.25 million shares at a price of $ 15-17.
The transaction began on July 16th.
The underwriter’s over-allotment is an extra 1 million shares.
The deadline is July 20th.
TScan is a biopharmaceutical company, focusing on developing T cell receptor engineering T cell therapy (TCR-T) for cancer patients.
TSC-100 and TSC-101, the company’s main liquid tumor TCR-T therapy candidates, are being developed to treat patients with hematological malignancies in order to eliminate residual leukemia and prevent recurrence after hematopoietic stem cell transplantation.
TCRX is also developing multiple TCR-T candidate therapies for the treatment of various solid tumors.
The company plans to submit an IND application for TSC-100 and TSC-101 to the FDA in the fourth quarter of 2021.
Donovan Jones, a contributor seeking Alpha, discussed in depth and said, "TCRX is still in the pre-clinical development stage, so IPO may be more suitable for long-term institutional investors; I will observe the IPO on the sidelines. "
Erasca, a precision oncology company, expanded its IPO to 19 million shares and priced it at $16.
Elasca (NASDAQ: ERAS) has priced its IPO of 18.75 million ordinary shares at $16.00 per share, with an expected total income of $300 million.
The company initially applied to issue 17.5 million shares at a price of $ 14-16.
The transaction began on July 16th.
The underwriter’s over-allotment is about 2.8 million extra shares.
The deadline is July 20th.
Erasca is a clinical precision cancer company, focusing on the discovery, development and commercialization of treatment methods for cancer patients driven by RAS/MAPK pathway.
The main candidate products of the company are ERAS-007 (oral ERK1/2 inhibitor) and ERAS-601 (oral SHP2 inhibitor), which together constitute the first MAPKlamp.
ERAS-007 has been evaluated as a single drug in phase I clinical trials of patients with advanced solid tumors. In the fourth quarter of 2020, ERAS launched FLASH HP-1, which is a phase I clinical trial of ERAS-601 in patients with advanced solid tumors. The following is an overview of the company’s drug development pipeline.
Donovan Jones, a contributor seeking Alpha, conducted an in-depth study on IPO and said, "ERAS showed early hope in preclinical research, but the pricing of IPO is much higher than the typical range of biopharmaceutical companies at IPO, so I will observe it from the sidelines."
Original link: https://seekingalpha.com/premium-news/healthcare
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