Author: Iqra Jamal

Zumiez Inc. (ZUMZ) is plummeted 5.30% in the pre-market trading session at the price of $37.5 after the release of fiscal 2021 second-quarter financial results. ZUMZ is a leading specialty retailer of apparel, footwear, accessories, streetwear, and other unique lifestyles goods. Their designed products are for young men and women who want to express their uniqueness through fashion, music, art, and culture.  

ZUMZ Announced Fiscal 2021 Second Quarter Results 

On 9th September 2021, ZUMZ announced results for the second quarter ended 31st July 2021. Chief Executive Officer of Zumiez, Rick Brooks, remarked that their second-quarter performance reflected the sustained success of their business over the past few years. They witnessed solid growth after the reopening of their stores in the second quarter of last year. Their teams did a superb job to fulfill robust demand for their distinct merchandise offering. Their third quarter drove by a more normalized back-to-school shopping season. They believe the flexibility of their business model provides them with the key comeback-to-schools that will leverage to maintain positive momentum. With their strong balance sheet and differentiated strategies, they are well-positioned to increase their global market share and add more value to their shareholders, he added.  

Second Quarter 2021 Financial Summary  

ZUMZ reported net sales of $268.7 million for the second quarter ended 31st July 2021. It represents a rise of 7.3% from $250.4 million in the second quarter ended 1st August 2020. Second-quarter 2021 net sales increased 17.6% compared to the second quarter ended 3rd August 2019. Net income was $24.0 million, or $0.94 per diluted share, in the second quarter of fiscal 2021. It was $25.4 million, or $1.01 per diluted share, in the second quarter of fiscal 2020. Net income for the second quarter of 2019 was $9.0 million or $0.36 per diluted share. The second quarter of 2021 net income was negatively affected by $2.8 million or $0.08 per diluted share due to the conditional settlement of a California class-action lawsuit. 

ZUMZ reported net sales of $547.7 million for the six months ended 31st July 2021. It represents an increase of 41.1% from $388.2 million for the six months ended 1st August 2020. Compared to the first six months ended 3rd August 2019, net sales were 24.1% up. Net income was $50.4 million, or $1.96 per diluted share, for the first six months of 2021. For the first six months of fiscal 2020, net income was $4.3 million or $0.17 per diluted share.  

Novavax, Inc. (NVAX) is plummeted 5.13% in the after-hours trading session at the price of $245.5 after the announcement made by the company to participate in two upcoming investor conferences. NVAX is a biotechnology company that aims to improve health globally. It designs, manufactures, and commercializes innovative vaccines to treat serious infectious diseases.  

Participation in Two Upcoming September Conferences 

On 9th September 2021, NVAX published about participation in two upcoming investor conferences. The discussion topic is about Novavax’s recombinant nanoparticle protein-based COVID-19 vaccine candidate, NVX-CoV2373. H.C. Wainwright 23rd Annual Global Investment Conference (Virtual) will be on 13th September 2021 at 7:00 a.m. Eastern Time (ET). Morgan Stanley 19th Annual Global Healthcare Conference (Virtual) will be on 10th September 2021 from 2:00 – 2:30 p.m. Eastern Time (ET).  All recorded fireside sessions will be available on the company’s website for 90 days after the conferences. 

NVAX Initiated Phase 1/2 Clinical Trial of Combination Vaccine 

On 8th September 2021, NVAX announced the enrollment of the first participants in a Phase 1/2 study. The study evaluates the safety and immunogenicity of a compound vaccine using Novavax’s seasonal influenza and COVID-19 vaccines. The clinical trial mixes Novavax’s recombinant NVX-CoV2373 and NanoFlu™ vaccine candidates. Both NVX-CoV2373 and NanoFlu have previously shown strong results as standalone vaccines in Phase 3 clinical trials. The trial evaluates the safety, tolerability, and immune response to NanoFlu together with NVX-CoV2373 and Matrix-M adjuvant. Participants will have been either previously infected with the SARS-CoV-2 virus or vaccinated through an authorized vaccine eight weeks before enrollment.  

President of Research and Development of NVAX, Gregory M. Glenn, commented that this study is the first of its kind to evaluate the vaccine’s potential. It aims to provoke a robust immune response simultaneously against two life-threatening diseases. These two vaccines have individually delivered outstanding results with favorable safety and tolerability profiles. The mixture of these two vaccines may lead to greater efficiencies for the healthcare system and achieve high levels of protection against COVID-19 and influenza, he added.  

CDC Guidance Update for COVID-19 Clinical Trial Participants 

On 30th August 2021, NVAX declared that the U.S. Centers for Disease Control and Prevention (CDC) had presented updated guidance for the vaccinated people as part of a clinical trial in the U.S. The guidance states that participants in the Novavax PREVENT-19 Phase 3 clinical trial meets the criteria to be considered fully vaccinated two weeks after their vaccination. Gregory M. Glenn remarked that Novavax praised the CDC for its continued support for COVID-19 clinical trial volunteers. CDC provided guidance updates for participants in their PREVENT-19 Phase 3 clinical trial. They are grateful to all of their clinical trial participants who have helped create a safer future for all.

NetEase, Inc. (NTES) is down 4.60% in the pre-market trading session at the price of $86.60 despite no recent news from the company. NTES is a leading internet technology company in China. It provides premium online services focused on innovative and diverse content, community, communication, and commerce. 

NTES Released Second Quarter 2021 Financial Results 

 On 31st August 2021, NTES published its unaudited financial results for the second quarter ended 30th June 2021. Net revenues were RMB20,524.5 million (US$3,178.8 million) for the second quarter of 2021. For the first quarter of 2021 and the second quarter of 2020, net revenues were RMB20,517.2 million and RMB18,184.8 million, respectively. Gross profit for the second quarter of 2021 was RMB11,189.6 million (US$1,733.1 million). Gross profit was RMB11,052.6 million and RMB9,792.2 million for the previous quarter of 2021 and the second quarter of 2020, respectively. The rise in online game services gross profit resulted from increased net revenues from both mobile and PC games.  

NTES reported a gross profit margin of 66.1% for online game services for the second quarter of 2021. Gross margins were 64.6% and 63.8% for the prior quarter and the second quarter of 2020, respectively. The gross profit margin for online game services is fluctuating within a narrow band based on the revenue from mobile and PC games. 

Net income attributable to the company’s shareholders was RMB3,541.8 million (US$548.5 million) for the second quarter of 2021. It was RMB4,439.2 million and RMB4,537.8 million for the preceding quarter and the second quarter of 2020, respectively. NTES reported a basic net income of US$0.16 per share (US$0.82 per ADS) for the second quarter of 2021. It was US$0.21 per share (US$1.03 per ADS) and US$0.22 per share (US$1.08 per ADS) for the preceding quarter and the second quarter of 2020, respectively. 

RMB50 Million Donations to Support China’s Henan Relief Effort 

On 22nd July 2021, NTES announced a donation of RMB50 million and emergency aid to support recovery efforts in Henan Province, China.  Zhengzhou and other cities in the Henan province had been hit by heavy rains, leading to river overflows, public transportation disruptions, and infrastructure damage. NTES had implemented a disaster relief campaign to support those in need. This initiative included an online emergency channel, which provides rescue information and enables users to contact others for emergency rescue assistance. NetEase prioritized supporting the community and people by providing additional disaster relief.  

BeyondSpring Inc. (BYSI) is up 8.34% in the pre-market trading session at the price of $24.93 despite any recent news. BYSI is a global biopharmaceutical company that develops innovative cancer therapies. Their therapies improve clinical outcomes for patients with high unmet medical needs.  

BYSI to Participate in the Upcoming September Conferences 

On 8th September 2021, BYSI announced that management would participate in two upcoming conferences in September 2021. Morgan Stanley 19th Annual Global Healthcare Conference will be on 14th September 2021 at 11:45 am ET. Management will also be available for 1×1 meetings from 9th to 15th September 2021. R.W. Baird’s 2021 Global Healthcare Conference will hold on 15th September 2021 at 4:55 pm ET. For this conference, management will also be available from 14th to15th September 2021.  

BYSI Scheduled Conference Call for Q2 2021 Financial Results 

On 7th September 2021, BYSI published that it had scheduled a conference call on 10th September 2021 at 8:00 AM Eastern Time. The management will host a conference call to report its financial results for the second quarter ended 30th June 2021. It will also provide updates on recent corporate events.  

Oral Presentation of Phase 3 DUBLIN-3 Data for Lung Cancer Patients  

On 31st August 2021, BYSI announced that it had scheduled Medical Oncology 2021 Congress from 16th to 21st September 2021. The late-breaking oral presentation will take place virtually at the European Society. It will present the final intention-to-treat (ITT) data set from the registrational trial of DUBLIN-3 Phase 3 plinabulin. It will also include data about docetaxel vs. docetaxel alone to treat 2nd/3rd line non-small cell lung cancer (NSCLC) patients with EGFR wild type.  

CEO of BYSI, Dr. Lan Huang, remarked that the ESMO Congress is the perfect venue to present high-impact clinical oncology findings. They will publish data from their successful DUBLIN-3 study about plinabulin’s ability to improve overall survival in 2nd/3rd line NSCLC patients. The durable anti-cancer benefit of plinabulin is a gateway to developing it as part of immuno-oncology combos in multiple cancer indications. BYSI plans to apply for an NDA in the U.S. and China to use plinabulin in these NSCLC patients. They are grateful to all of their collaborators for helping them to bring plinabulin for cancer patients globally, he added.  

Agreement with Jiangsu Hengrui Pharmaceuticals for Plinabulin 

On 26th August 2021, BYSI announced a commercialization and co-development agreement with Jiangsu Hengrui. The deal is about plinabulin, an investigational drug candidate. Plinabulin is currently under NDA Priority Review by the U.S. Food and Drug Administration (FDA) and the China National Medical Products Administration (NMPA). This drug is a first-in-class and selective immunomodulating microtubule-binding agent (SIMBA). 

Hepion Pharmaceuticals, Inc. (HEPA) is up 4.02% in the pre-market trading session at the price of $1.81 despite any recent news. HEPA is a clinical-stage biopharmaceutical company. It develops therapeutic drugs to treat liver diseases resulting from non-alcoholic steatohepatitis (NASH).

HEPA Postponed 2021 Annual Meeting of Stockholders

On 23rd July 2021, HEPA announced that it had postponed its adjourned 2021 Annual Meeting of Stockholders. The meeting has earlier scheduled for 23rd July 2021 at 9:00 a.m. Eastern Time. The conference will be rescheduled for a date yet to be fixed by the Board of Directors. The Board of Directors will decide a new record date for the Annual Meeting. The notice of the updated Annual Meeting date will deliver to stockholders following the final decision.

Publication of Positive Topline Data from Phase 2a ‘AMBITION’ NASH Trial

On 13th July 2021, HEPA published positive topline results from its Phase 2a ‘AMBITION’ NASH clinical trial. All initial endpoints of the trial were satisfied. AMBITION was a Phase 2a randomized, multi-center, placebo-controlled, and single-blind trial. It had designed to study once-daily oral administration of 75 mg and 225 mg doses of CRV431. The incidence of safety and tolerability events of CRV431 versus placebo was the chief outcome measure of the AMBITION trial. CRV431 doses had tolerated in both studies. No serious unfavorable events (SAEs) had found.

HEPA Joined the Russell Microcap Index

On 9th June 2021, HEPA declared that it joined the Russell Microcap Index after the 2021 Russell indexes annual reconstitution. The addition became effective after the United States market opening on 28th June 2021. Membership in the Russell Microcap® Index remains in place for one year. It indicates inclusion in the appropriate growth and value style indexes. Membership in Russell indexes is determined primarily by objective, market-capitalization rankings, and style attributes. Russell indexes are broadly used by investment managers and institutional investors for index funds and as benchmarks. About $10.6 trillion in assets have benchmarked against Russell’s US indexes. Russell indexes are part of FTSE Russell that is a leading global index provider.

CEO of HEPA, Dr. Robert Foster, remarked that it was a significant milestone for them to join the Russell indexes. They believe in the progress they are making to increase shareholder value by advancing the clinical development of their lead CRV431 drug candidate to treat NASH and other liver diseases. They look forward to the broader exposure and potential interest from the benefits Russell Microcap® Index provides, he added.

Acasti Pharma Inc. (ACST) is down 4.42% in the pre-market trading session at the price of $2.16 despite any recent news. ACST is a late-stage specialty pharma company. It has the capacity to deliver drugs and technologies for the treatment of rare and orphan diseases. Its drug delivery technologies have the potential to improve the performance of currently marketed drugs. 

Successful Merger with Grace Therapeutics, Inc. 

On 27th August 2021, ACST published the completion of its previously disclosed merger with Grace Therapeutics, Inc. The successful completion of the merger supports the company to build a premier, late-stage specialty pharma company centered on rare diseases. Acasti expects to have enough cash on its balance sheet to deliver two years of runway operations. The merged companies will be run by President and Chief Executive Officer Jan D’Alvise, under the direction of the newly elected Board of Directors. All Grace employees will transition to Acasti. They will continue to maintain a research and development laboratory and commercial presence in North Brunswick.  

CEO of ACST, Jan D’Alvise, remarked that they remain encouraged and excited about the planned acquisition of Grace. They believe this transaction will be transformative for their company and shareholders. Grace has developed novel drug delivery technologies and is applying them to approved pharmaceutical compounds with proven safety and efficacy. These technologies have enabled them to customize the formulation of marketed drugs in new ways that address unmet medical needs in rare and orphan diseases. They plan to utilize the Section 505(b)(2) regulatory pathway under the Federal Food, Drug, and Cosmetic Act for clinical development and approval. 

ACST First Quarter Fiscal 2022 Financial Results 

On 12th August 2021, ACST presented business updates and announced its operating and financial results for the first quarter of fiscal 2022 ended 30th June 2021. Loss from operation was $3.1 million for the three months ended on 30th June 2021. Operating loss was $4.1 million for the same period of 2020. The change resulted from the reduction in research and development, administrative expenses, and marketing expenses.  

ACST reported a net loss of $3.1 million or $0.01 per share for the three months ended on 30th June 2021. It represents a drop of $1.6 million from the net loss of $4.7 million or $0.05 per share for the three months ended 30th June 2020. The reduction in net loss was due to a decrease in research and development expenses. Sales and marketing expenses also declined due to the discontinuation of CaPre commercialization activities. Cashflows, cash, and cash equivalents were $57.7 million by 30th June 2021. They were $12.1 million on 30th June 2020. 

Fluent, Inc. (FLNT) is up 5.90% in the after-hours trading session at the price of $3.05 after the announcement of the full acquisition of Winopoly, LLC. FLNT is a leading performance marketing company with expertise in creating reliable connections between consumers and brands. 

Full Acquisition of Winopoly, LLC 

On 7th September 2021, FLNT announced the complete acquisition of Winopoly, LLC. Earlier, on 1st April 2020, Fluent acquired a 50% stake in Winopoly. This complete acquisition will accelerate Fluent’s ability to provide end-to-end and personalized customer acquisition solutions to a growing roster of global brands. Fluent is also launching Fluent Sales Solutions. It is a new business designed to reach consumers who shop within high-consideration categories like Medicare, Life Insurance, Auto Insurance, Home Services, Financial Services, and Legal Services. It will maximize the company’s evolving capabilities. With the full integration of Winopoly, Fluent Sales Solutions will enable companies within these categories to engage high-intent consumers through their preferred channels.  

FLNT Second Quarter 2021 Financial Results 

On 9th August 2021, FLNT published financial results for the second quarter ended 30th June 2021. CEO of FLNT, Don Patrick remarked that their second-quarter results indicate accelerated investment in their strategic priority of enhancing quality across the marketplace. They have boosted their Traffic Quality Initiative with the help of their fully positioned founding team. They have uncovered opportunities to test media expansion strategies rapidly, which generated revenue beyond their expectations. For the second half of the year, they are focused on expanding traffic volumes and enhancing profitability to continue their journey to create meaningful, enduring, and higher-value connections for consumers, he added. 

Second Quarter Financial Summary 

FLNT reported revenue of $73.4 million for the second quarter ended 30th June 2021. It was 3% up from $71.5 million in the second quarter of the previous year. For the six months ended 30th June 2021, revenue was $143.5 million. Net revenues of $150 million, reported for the same period of 2020. 

FLNT reported a net loss of $5.2 million or $0.06 per share for the second quarter of 2021. The net income was $0.5 million or $0.01 per share for the same quarter of 2020. Media margin of $20.1 million reported for the second quarter ended 30th June 2021. It represents a drop of 19% from the first quarter of 2020. Adjusted EBITDA was $1.9 million in the second quarter of 2021, representing 2.5% of revenue. Adjusted net loss of $1.9 million or $0.02 per share, reported for the second quarter of 2021.