Wednesday, November 13, 2019

IBI Research On Avalon: Fortressing Capital Structure And Strengthening Fundamentals

Summary
The drug pricing and the China Trade War concerns devastated the share price of most bioscience stocks. And, the aforesaid industry headwinds did not spare Avalon.
Due to a bearish bioscience market, Avalon's market valuation is now retraced significantly below its true worth.
Notwithstanding, there are powerful fundamental developments that substantially increased the intrinsic value of Avalon.
The next-generation CAR-T (AVA-001) is launched into the clinic. The Dragon CAR-T (AVA-101) is poised to reach patients in months while other franchises are developing at a rapid pace.
The capital structure is now strengthened as Avalon repurchased all outstanding warrants.
Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do. - Warren Buffett
Concerns relating to the China Trade War and drug pricing control have clobbered most bioscience stocks in recent months. For a significantly volatile sector, such news is like gasoline to fuel a raging wildfire. In the aftermath, the share price of a stellar CAR-T innovator dubbed Avalon GloboCare (AVCO) receded into the deep South.
Facing this calamity, it can be easy for you to dispose of your stocks to cease that sickening feeling in your stomach associated with a stock decline. Be that as it may, you must focus on the big investing picture. Time after time, there will be war scare and dark clouds to paint the investing sky with a gloomy view. Nevertheless, the market has always risen to a higher level. Amid this difficulty, I strongly believe that there is an excellent opportunity to build shares in Avalon. In this research, I'll feature a fundamental update on Avalon and provide my expectation for this spectacular growth equity.
Figure 1: Avalon chart (Source: StockCharts)

About The Company

As usual, I'll feature a brief corporate overview for new investors. If you are familiar with the firm, I suggest that you skip to the subsequent section. Headquartered in Freehold New Jersey, Avalon is engaged in 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 (i.e. CAR-T).
For the diagnostic portfolio, Avalon harnesses the power of "exosomal biomarkers" to launch an avalanche against oral cancer, nonalcoholic steatohepatitis ("NASH"), leukemia, colorectal cancer, and macular degeneration. In general, biomarker diagnostic is an evolving field. And yet, the application of exosomal biomarkers is ingenious because it can promptly pinpoint a diagnosis to provide physicians an edge against dreaded diseases. When it comes to the fight for life, I believe that accuracy, precision, and timeliness are of paramount importance. As shown below, there are several potential blockbusters such as AVA-101, -201, and -203.
Figure 2: Diagnostic and therapeutic pipeline (Source: Avalon)

Monday, September 30, 2019

IBI Market Insight: To Profit From Value Disconnect

Summary
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

Summary
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.