Showing posts with label Solid Biosciences. Show all posts
Showing posts with label Solid Biosciences. Show all posts

Thursday, February 1, 2018

An Integrated BioSci Alpha Intelligence On Solid Biosciences: Is This The Silver Bullet For Duchenne Muscular Dystrophy?


  • Asides CAR-T, gene therapy/editing are going to power the next waves of therapeutic innovation.
  • Recently IPOed, Solid Biosciences is trading northbound.
  • Company is innovating a gene therapy to potentially service the orphan disease (Duchenne muscular dystrophy).
  • Robust cash position from the public offering to fund operating expenses.
  • Significant insider purchases signified their confidence in the company’s prospects.

“When we made the mistake of letting the news out of the bag, we are confronted with the latest reasons that mankind is doomed: global warming/cooling, the evil Soviet empire, recession, inflation, illiteracy, the high cost of healthcare, tribal warfare ... Even the sports page can make you sick. Keeping the faith and stock picking are normally not discussed in the same paragraph, but success in the latter depends on the former.” - The Former Fidelity-Magellan Manager (Peter Lynch)

On Jan. 30, 2017, the shares of Solid Biosciences (NASDAQ:SLDB) - an innovator of gene therapy to manage Duchenne muscular dystrophy - catapulted $3.47 higher to trade at $25.97 for +15.9% gains for the trading session. Back on Jan. 25, the former private firm offered shares to the public at $16.00 (as it began to trade on the Nasdaq stock exchange the next day). Despite that the share price moved southbound in the following days, it reversed course to trade much higher.
Figure 1: Solid Bioscience stock chart. (Source: StockCharts)

At Integrated BioSci Investing (“IBI”), we have much success in finding alphas. For instance, Nektar Therapeutics (NASDAQ:NKTR) procured +338% for subscribers. All that being said, we’ll elucidate the underlying fundamentals of Solid and to provide further updates on our investing thesis re gene therapy.

About The Company

Based in the innovation hub (Cambridge, MA), Solid Biosciences went public on Jan. 25, 2018, via J.P. Morgan (NYSE:JMP), Goldman Sachs (NYSE:GS), and Leerink Partners which acted as the joint book-running managers for the said transaction. Accordingly, the firm closed its initial offering of 8.98M shares at $16 (and raised $133.7M). This figure took into account the underwriters’ optional purchased of 1.17M additional shares.

As follows, the company now has plenty of cash to fund its highly promising pipeline to potentially service Duchenne muscular dystrophy. Per figure 2, the three developing franchises include corrective (i.e. gene) therapies, disease-modifying molecules, and assisted devices.

Figure 2: Therapeutic pipeline. (Source: Solid Biosciences)