Monday, September 30, 2019

IBI Market Insight: To Profit From Value Disconnect

In recent years, stellar breakthroughs such as CAR-T and gene therapies painted the bioscience landscape.
Previously limited by expertise, we're witnessing an increasing number of companies brewing gene-editing molecules.
Precision medicine therapeutics and companion diagnostics are powering the next wave of innovation.
Nonetheless, the China Trade War and drug pricing pressure lead bioscience stocks to exchange hands at a deep discount.
At the turn of the next market cycle, the long-term oriented investors will enjoy sizable profits.
I like the idea of using artificial intelligence because we're so short of the real thing. - Charlie Munger
I hope that you guys had a great weekend. Asides from doing light tasks like posting on my social media, I shifted away from work during the weekend. In my view, it's best to conduct investment research and news analysis during weekdays. As family and God are matters of the heart, they should at least have the weekend. I believe it's more healthy and balance for you to reserve the weekend to rejuvenate and improve other arenas of life. After all, there is more to life than investing. And, the investment process is not a sprint. It's a marathon so pace yourself accordingly.
Figure 1: Charlie Munger and Warren Buffett (Source: Robyn Twomey)
That being said, I'd like to kick off the week with another series coined Market Insight. This publication is similar to the Industry Trends analysis that I conducted from time to time. Despite the resemblance, there are significant differences. Specifically, Market Insight explores current affairs that are driving broader market behaviors. Aside from providing you with the intelligence affecting your investment value, Market Insights offers various strategies to help you capitalize gains and minimize losses.

Thursday, September 26, 2019

IBI Reports On Marinus: Robust Phase 2 Data For Ganoxolone

Marinus Pharmaceutical reported stellar data for its Phase 2 trial investigating the lead medicine (ganoxolone) for refractory status epilepticus.
All trial patients experienced strong efficacy with an overall good safety profile.
The shares exhibited a strong initial rally. As investors take profits, the initial optimism is fizzling out.
Marinus Pharmaceuticals (MRNS) made its way into IBI's daily commentary today. Due to the positive Phase 2 study of its lead medicine ganaxolone, the stock appreciated over 58% in the pre-market. Nonetheless, the rally is fizzling out toward mid-day trading. It seems that market optimism is fading, as Marinus is currently exchanging hands at 18% premium to yesterday's close.
Figure 1: Marinus chart (Source: StockCharts)
Accordingly, Marinus is focused on the innovation and commercialization of novel molecules to serve the unmet needs in epilepsy and psychiatric medicine. Instead of diversifying into a broad pipeline, Marinus is brewing one stellar molecule (ganaxolone) for various neurological indications, including refractory pediatric epilepsy, acute epilepsy, and postpartum depression.

Thursday, September 5, 2019

IBI Research On Avalon: Poised For Market Conquest

Avalon's CAR-Ts are ahead of their time due to key advantages over conventional medicines. AVA-101 shuttles enough genes to decimate two oncology targets (CD19 and CD22).
In July 2019, Avalon launched its first CAR-T (AVA-001) into the clinic for relapsed/refractory acute lymphoblastic leukemia and non-Hodgkin lymphoma.
The most advanced CAR-T in the market (AVA-101) recently entered a process development and validation phase. As such, it will be advanced into human studies in 1Q2020.
The medical diagnostics franchise is progressing rapidly. AVA-201 will be made available in the clinic for oral cancer by 4Q2019. A regulatory filing is expected a year later.
The regenerative medicine segment is projected to deliver AVA-202 for diabetic wounds by year-end.
This idea was discussed in more depth with members of my private investing community, Integrated BioSci Investing. Get started today »
In the development phase, don't forget stability. And in stability, don't forget development. - Li Ka Shing (Billionaire Investor and Philanthropist)
Author's note: This an example of the IBI research available exclusively for our marketplace members.
A theme that I particularly like in bioscience investing is when a company layered excellent diversification within its pipeline. Diversification lowers investment risks while increasing the chances of finding a blockbuster. A prime example of this phenomenon is Avalon Globocare (OTC:AVCO), as the company is gearing to hit a "trifecta." Accordingly, Avalon is brewing the next-generation CAR-T, precision medicine diagnostic, and regenerative medicine. Though all three franchises have a high probability of generating winners, you only need a single blockbuster for the stock to appreciate multiple folds.
What makes this investment enticing is that the shares have depreciated significantly due to the overall biotech downturn in recent months. As such, its financial and valuation are highly favorable. In this research, I'll feature a fundamental analysis of Avalon and provide my expectation for this stellar growth stock.
Figure 1: Avalon chart (Source: StockCharts)

About The Company

As usual, I'll deliver a brief corporate overview for new investors. If you are familiar with the firm, I suggest that you skip to the subsequent section. Operating out of Freehold New Jersey, Avalon is focused on the development and commercialization of disruptive medicines and diagnostics to serve the strong unmet needs in cancer and various diseases. Using a trident-like approach of Poseidon, Avalon captures opportunities in three lucrative niches. They include exosomes diagnostics, regenerative medicine, and cellular immunotherapy.