STOCKS TELEGRAPH

Author: ST Staff

  • What Caused The Alterity (ATHE) Stock To Fell Before Market Opens Today?

    Alterity Therapeutics Limited (ATHE) stock was down -8.00 percent at $1.62 at the last check in pre-market trading. ATHE stock closed Friday session at $1.75, down -18.22% or $0.39. Price of Alterity stock ranged between $1.59 and $1.89. A total of 22.72 million securities were exchanged, a volume greater than ATHE’s YTD volume of 3.29 million and above its 50-day daily volume of 5.76 million.

    The ATHE stock has gained 204.37% in the past 12 months, and it has gained 28.67% in the last week. ATHE stock has gained 30.60% over the last six months and has gained 20.69% over the last three months. After gaining on last Thursday for grant of a new patent, ATHE stock has been consolidating.

    ATHE was granted a patent, what was it?

    ATH434, an early candidate from Alterity, is the first of a new generation of small molecules designed to suppress the formation of pathological proteins that result in neurodegeneration. As ATH434 decreases abnormal brain iron imbalance by preventing the abnormal accumulation of α-synuclein in animal models of disease, it can reduce symptoms of Parkinson’s disease. ATHE’s lead candidate is therefore well suited for treating Parkinson’s disease as well as atypical Parkinsonisms like Multiple System Atrophy (MSA). ATHE has been granted Orphan designation by the US FDA and the European Commission for ATH434 to treat MSA.

    On Thursday, Alterity announced that the United States Patent and Trademark (USPTO) had awarded it a composition of matter patent.

    • ATHE has patented a technology that reroutes excess iron in the nervous system through a new class of iron chaperones, a technology developed by the company.
    • ATHE’s patent illustrates the structure of a small molecule drug candidate that is capable of crossing the blood brain barrier and directly attacking the source of neuropathology.
    • Several important neurodegenerative diseases, including Alzheimer’s and Parkinson’s, have been linked to excess iron in the brain.
    • The USPTO granted the patent, entitled “Compounds for and Methods of Treating Diseases,” following expedited review.
    • More than 150 novel pharmaceutical substances are covered that redistribute labile iron, which is implicated in many neurodegenerative disorders.

    ATHE’s further plans:

    Alterity (ATHE ) expects to start the Phase 2 early next year with its lead clinical candidate ATH434. An experimental small molecule drug called ATH434 is being developed to treat Multiple System Atrophy (MSA), an atypical form of Parkinson’s disease in which iron promotes α-synuclein aggregation.

    In tandem with ATHE’s Phase 2 study results, scientific investigation of ATH434 will enhance the development and optimization of new compounds from the new patent. ATHE will be well-positioned to develop and commercialize drugs for significant neurodegenerative diseases as a result of the patent.

  • Odonate Therapeutics, Inc. (ODT) Stock Skyrockets as Latest Potential Target of Meme Stock Phenomenon

    Odonate Therapeutics, Inc. (ODT) stock prices were up by 2.97% as of the market closing on July 2nd 2021, bringing the price per share up to USD$3.47 at the end of the trading day. Subsequent premarket fluctuations saw the stock skyrocket by 32.85%, bringing it up to USD$4.61.

    Cessation of Texetaxel Development

    The company recently announced the discontinuation of the development of its flagship tesetaxel treatment, along with the intent to wrap up operations related to the treatment’s development. ODT is collaborating with clinical sites to transition patients from their ongoing studies to relevant and applicable alternative therapies. Compassionate use programs will see the continuation of treatment with tesetaxel, as deemed appropriate in extreme cases.

    Financial Reports

    March 31st 2021 saw the company announce USD$133.2 million in cash, indicating a stellar liquidity position. December 31st 2020 had reported USD$157.3 million, with the difference being largely attributable to a USD$24.9 million cost of operating activities for the three month period ended March 31st 2021. Net loss at the end of the quarter was reported at USD$33.8 million, representing a net loss of USD$0.90 per share. The same time period over the previous year saw the company reported USD$30.2 million in net loss, representing a net loss of USD$0.99 per share.

    Meme Stock Phenomenon

    With the company having closed operations for its primary driving force, the recent surge in equity value is truly confounding. In the absence of recent news developments or changes in the company’s fundamentals, it seems ODT has become the latest target of the meme stock phenomenon that has been raging through stock markets since the AMC and GME debacles earlier in the year.

    About Meme Stocks

    With very little reason to invest in the company, ODT owes its fortuitous surge in equity value to the proliferation of meme stocks. Meme stocks are underperforming companies, with little to no reason to justify an investment in, that are heavily pumped by retail investors. These investors target underdog companies with high short interests in a coordinated short squeeze on the social media platform, Reddit. Understandably, meme stocks come packed with high risk and volatility. Upward movement relies on the strength of each link in the chain of coordination. While many profit heavily on this confounding stock movement, as many or more investors lose their investments if they are late to the pump and dump.

    Future Outlook for ODT

    As it stands, ODT is poised to collapse, but it seems to be kept afloat by its recent surge in equity value. Unless it comes out with significant news in the very near future or manages to leverage its additional capital to generate more organic growth, the future for ODT does not look bright.

  • DiDi Global Inc. (DIDI) Stock Plummets as Increasing Chinese Regulations Result in Cancellation of U.S IPO

    DiDi Global Inc. (DIDI) stock prices were down by 5.30% as of the market closing on July 2nd, 2021, bringing the price per share down to USD$15.53 at the end of the trading day. Premarket fluctuations saw the stock plummet by 22.22%, bringing it down to USD$12.08.

    Troubles in China

    July 6th, 2021 saw the company announce the removal of its DiDiChuxing mobile app in China in accordance with directions from the Cyberspace Administration of China (CAC). The order came following the CAC’s belief that the company was collecting the personal information of its users, which is in direct violation of Chinese laws and regulations. Global operations are expected to be directly unaffected. With the app having been taken down in the massive Chinese market, the company expected its Chinese revenues to suffer. Fortunately, users who had downloaded the app before the CAC’s directives can continue making use of it.

    Increasing Regulations

    The Chinese version of Uber, the ride hailing service, is facing a harder time pitching its shares to prospective investors as China’s regulations are ramped up. Global equity managers are considering the impact of the increasing regulatory threats as the country’s efforts to control big data develop. The move sees China target companies that are spreading into the North American markets with the launches of U.S IPOs by Chinese tech companies.

    Scope of Chinese Tech Space

    The Chinese capital continues to crack down on the tech space, with as many as 34 pending filings for U.S. listings by Chinese and Hong Kong based companies having been announced this year. These numbers are unprecedented, with more than USD$15 billion priced in New York IPOs in the year so far. Following the cybersecurity review of DIDI, the company saw its shares drop massively in the U.S premarket.

    Ripple Effect

    Chinese companies that are subject to increasing regulations are unhappy with the way the regulations are being enforced. Rather than preventing the U.S IPOs from commencing, China has forced companies to break trust with many foreign investors. Even after the resolution of the matter at hand, it will take significant effort to repair the adverse effect on the company’s brand image.

    Future Outlook for DIDI

    With the planned IPO having been pulled, DIDI is exploring measures to recoup from the financial and non-financial adverse effects of recent Chinese developments. Current and potential investors are hopeful that the Chinese government will facilitate the accessible expansion of the tech space with a reigning in of regulations.

  • Why Bridgeline (BLIN) Stock Is Trading Higher In Premarket?

    As of the last check, Bridgeline Digital Inc. (BLIN) gained 14.94% to $10.31 in premarket trades today. BLIN closed the regular trading session at $8.97, up 56.0%. The Bridgeline stock price ranged between $6.0105 and $8.97. BLIN stock traded 144.08 million shares, which was far higher than its daily average of 3.84 million shares over 100 days.  In the wake of receiving more than $2.5 million, BLIN stock is rising.

    What made BLIN receive the amount?

    Bridgeline’s marketing platform and apps help companies increase their online revenues by building traffic, conversion rates, and average order values. Bridging the gap between experience management and digital transformation, BLIN develops the award-winning Bridgeline Unbound (formerly iAPPS) platform. BLIN Product Suite helps marketing professionals deliver online experiences that attract, engage, nurture, and convert their customers across all digital channels using a cohesive, cloud-based solution powered by web content management, eCommerce, eMarketing, and web analytics.

    A recent CODiE Award winner and finalist for Best Content Management, Digital Marketing & Commerce Solution, BLIN offers cloud-based content management and digital marketing. BLIN offers end-to-end solutions for digital engagement, including web application design and development, as well as usability and digital strategy, leveraging a Microsoft Gold Certified application engineer team and partner network.

    As of Friday, Bridgeline had received over $2.5M cash from warrant exercises.

    • BLIN issued the warrants with a $4.00 strike price in 2019.
    • These funds bring BLIN’s total cash position to approximately $6 million.
    • Through this additional capital, BLIN will accelerate growth and execute its eCommerce 360 strategy for 2,500 customers.
    • BLIN will drive traffic, increase conversions, and increase average order value.
    • WooRank and HawkSearch were acquired by BLIN in 2021.
    • WooRank improves search engine optimization by driving traffic to websites.
    • By increasing conversions and optimizing visitors’ search experiences on eCommerce websites, HawkSearch increases revenue.

    Further from BLIN:

    In addition, last week Bridgeline announced that more than 20 site search licenses were acquired by its partner network for Celebros and HawkSearch, its most recent acquisition. The current partners of Bridgeline (BLIN) include Shopify, BigCommerce,

    Salesforce,Oro Commerce,  Magento, SAP,Optimizely, and AmericanEagle.com. BLIN’s capability to combine Celebros and HawkSearch makes it a leading player in the site search market. BLIN leverages technology such as personalization, recommendations, and machine learning algorithms that rely on user behavior to provide highly relevant and accurate results.

  • Did Anything Hurt Acutus (AFIB) Stock In Extended Trades?

    As of last check in afterhours trading, Acutus Medical Inc. (AFIB) was down -9.31% at $15.39. The Acutus stock price was almost stable on Friday, falling -0.12% to close the day at $16.97. AFIB stock volume was 43030.0, which is lower than the average volume over the past three months of 218.56K. The price of the AFIB stock fluctuated from $16.67 to $17.17 during this period.

    AFIB reported earnings per share of -4.98 during the regular session. AFIB shares have lost -3.91% in the last five sessions, gained 6.26% over the past month, but lost -41.10% for the year. With a 50-day moving average of $15.13, AFIB stock is below its 200-day moving average of $21.84. Additionally, the AFIB stock’s RSI is currently 56.38.

    When there has been no news about AFIB, it may be reasonable to expect recent developments to provide additional information.

    AFIB, what has been happening recently?

    Acutus manages cardiac arrhythmias and aims to improve the way these disorders are diagnosed and treated. Providing physicians with a superior range of products and technologies, the AFIB is dedicated to advancing the field of electrophysiology. AFIB has built an international sales network through internal product development, acquisitions, and global partnerships. AFIB’s products provide cardiac arrhythmia patients with a comprehensive solution for catheter-based treatment.

    AcQBlate Force Sensing Ablation Catheter and System have recently been approved by the FDA for use in the company’s Atrial Fibrillation (AF) Investigational Device Exemption (IDE) clinical trial, Acutus announced recently.

    • AFIB focused on this trial as in the United States, there are approximately 190,000 ablation procedures annually.
    • By 20251 that number is projected to reach 375,000.
    • AFIB plans to enroll 350 patients at leading centers globally in a trial designed to evaluate the system’s effectiveness and safety in the treatment of persistent and paroxysmal atrial fibrillation.
    • AcQBlate Force gold-tipped catheter and system by AFIB are designed specifically to provide consistent therapeutic solutions during cardiac ablation procedures.
    • AFIB’s system enables physicians to view current contact force, in real-time, while performing ablations on the heart.
    • Real-time contact force information has been shown to help physicians deliver safe and effective therapy to patients, thus improving their outcomes.

    Achievements and strategies:

    As of late 2020, Acutus (AFIB)’s advanced system has received a CE Mark, enabling it to become commercially available in Europe. AFIB’s Pulsed Field Ablation (PFA) program plans to use the AcQBlate Force Catheter and System in addition to US IDE and European commercial activities. Once participating sites gain necessary institutional review board (IRB) approvals, AFIB expects enrollment for its AcQBlate Force AF trial to commence in the second half of 2021.

  • SQBG Stock Fell 12% After Hours, Why?

    Shares of Sequential Brands Group Inc. (SQBG) were falling -12.36% in after-hours trading to trade at $13.76. In Friday’s session, Sequential Brands Corp. gained 89.16% to close at $15.70. Friday’s volume was 28.04 million shares, a greater volume than the average daily volume of 1.39 million shares reported by the company for the past 50 days. Over the last year, shares of SQBG stock have gained 90.53%, and they have risen by 69.36% over the past week.

    SQBG’s stock price has dropped -46.63% over the past three months, while over the past six months, it has dropped 9.41%. In addition, SQBG’s market value is $14.66 million, with 1.65 million shares outstanding. Since the SQBG stock rose in the absence of recent news, we can refer to recent developments for a more thorough understanding of the stock.

    How have things been at SQBG recently?

    In addition to owning, promoting, marketing, and licensing consumer brands in the active and lifestyle categories, Sequential Brands is a marketing and licensing company. In order to make sure that its brands continue to thrive, SQBG employs strong marketing and brand managers. Retailers, wholesalers, and distributors can currently access SQBG’s brands in a wide variety of consumer categories in the United States and worldwide.

    Sequential Brands shareholders have recently been served with a lawsuit by the Shareholders Foundation Inc. There was a lawsuit filed against SQBG on March 16, 2021, alleging securities law violations. The plaintiff alleged that:

    • As of late 2016, SQBG made false and/or misleading statements and/or failed to disclose those false and/or misleading statements.
    • This caused SQBG’s goodwill to be impaired, or it should have been aware of it.
    • The material write down to goodwill by SQBG was avoided and delayed throughout late 2016 and 2017.
    • Over the course of late 2016 and 2017, SQBG materially overstated its income, goodwill, and assets as well as its operating expenses.
    • The internal controls at SQBG were inadequate.
    • In addition, there were omissions, misstatements, and control violations that SQBG failed to restate, correct, or disclose.
    • SQBG was at greater risk from regulatory scrutiny and enforcement because of the foregoing.
    • As of every relevant time, SQBG’s statements regarding its business, operations, and prospects were materially false and misleading.

    Strategy to sell assets:

    Bloomberg reported last month that Jessica Simpson brand’s troubled owner company, SQBG, is nearing a deal to sell the majority share to the singer. SQBG planned to sell off other assets as well as filing for Chapter 11, Bloomberg reported citing sources.

    Sequential Brands (SQBG), which had been seeking to sell off its assets to avoid liquidity troubles while negotiating with creditors, is now preparing to sell its brands. In addition to repaying its creditors, SQBG would use proceeds from the sales to pay KKR & Co., its largest lender.

  • Adial Pharmaceuticals, Inc. (ADIL) Stock Surges Ahead of Inclusion in Russell Microcap Index

    Adial Pharmaceuticals, Inc. (ADIL) stock prices were up by a significant 16.21% as of the market closing on July 2nd, 2021, bringing the price per share up to USD$2.94 at the end of the trading day.

    Inclusion in Russell Microcap Index

    June 28th, 2021 saw the company announce its inclusion in the Russell Microcap Index, effective as of the market opening on the same day. Inclusion in the index is indicative of the company’s progress in advancing its lead investigational new drug product, AD04, through ADIL’s ONWARD Phase 3 trial for the treatment of alcohol use disorder. Further contributing to the addition in the index was the company’s recent acquisition of Purnovate, along with its adenosine drug development platform.

    Fast Track Designation Denied

    The company reported near the end of June 2021 that its request for Fast Track Designation for the use of AD04 in the treatment of Alcohol Use Disorder had been denied by the U.S. Food and Drug Administration. The FDA cited the company’s failure to adequately demonstrate the potential of its treatment, with the agency requesting additional comparative information in contrast to other alternative therapies.

    Gaining Approval

    As per the denial, ADIL will assess the FDA’s requirements to facilitate approval of a Fast Track Designation, which is designed to facilitate development and hasten the process of regulatory review of drugs. AD04 is currently undergoing a Phase 3 ONWARD trial, with the primary endpoint of efficacy being marked by the change from baseline in the monthly number of heavy drinking days during the last eight weeks of the 24-week treatment period.

    ONWARD Trial

    The ONWARD trial is a multicenter, randomized, double-blind, placebo-controlled, parallel group, Phase 3 clinical study that lasts a period of 24 weeks. It is designed to evaluate the efficacy, safety, and tolerability of AD04 in the treatment of patients with Alcohol Use Disorder and selected polymorphisms in the serotonin transporter and receptor genes. The ONWARD trial ensured only genetically positive patients were enrolled by genetically screening patients prior to enrollment. The primary endpoint is the change from baseline in the monthly number of heavy drinking days during the last 8 weeks of the 24-week treatment period.

    Future Outlook for ADIL

    Despite the speed bump presented by the FDA’s denial of Fast Track Designation for AD04, ADIL is poised to address and resolve the issue and continue the development of its flagship treatment. Investors are hopeful for a timely resolution and the resumption and acceleration of the commercialization of AD04.

  • Larimar Therapeutics, Inc. (LRMR) Stock on the Rise as Resolution of FDA Clinical Hold Continues to Develop

    Larimar Therapeutics, Inc. (LRMR) stock prices were up by a marginal 1.54% as of the market closing on July 2nd, 2021, bringing the price per share up to USD$9.89 at the end of the trading day. After hours trading saw the stock surge by 10.21%, bringing it up to USD$10.90.

    Clinical Hold for CTI-1601

    May 25th 2021 saw the company announce that the U.S. Food and Drug Administration had placed a clinical hold on LRMR’s ongoing CTI-1601 clinical program. As a result, the company did not complete its previously announced private placement financing. The clinical trial is for the treatment of patients with FA who are unable to produce enough human frataxin, with CTI-1601 serving is a recombinant fusion protein that is delivered to patients’ mitochondria.

    Contextualizing the Hold

    The clinical hold came after the company’s reporting to the FDA in regard to mortalities occurring at the highest dose levels in an ongoing 180-day non-human primate toxicology study. The study was designed to support extended CTI-1601 treatment in patients. The FDA implemented the hold in light of needing a full study report from the company’s NHP study, with a restriction on the initiation of additional clinical trials until the report has been submitted and approved by the FDA.

    Effects of FDA Decision

    The disappointing formal clinical hold notification does not, however, change the company’s previously stated strategy for the clinical development of CTI-1601. LRMR plans to complete its NHP toxicology study, assess the data, and discuss the data with the FDA in order to obtain prior consent for the commencement of their Jive and pediatric MAD trial. Patient safety continues to be a top priority, with the company confident that despite the hiccup, the path forward is still in place.

    Deferral of Trials

    With the added regulatory requirements associated with the formal clinical hold, the company is entertaining the possibility of deferring the initiation of its clinical trials. The trials are being considered to be pushed up to 2022. Despite the termination of the planned private placement financing, the company reported a solid cash position as of March 31st, 2021. Having reported USD$81.4 million in cash and cash equivalents, the company anticipates being able to fund its operations through to the first half of 2022.

    Future Outlook for LRMR

    Confident in the timely resolution of the speedbumps in the road towards the commercialization of its treatment candidates, LRMR is poised to continue its trajectory of success. The company is keen to address the FDA’s requirement so it can continue pushing for the development of its various clinical trials.

  • Pulse Biosciences, Inc. (PLSE) Stock Dips Following Announcement of USD$50 Million Private Placement

    Pulse Biosciences, Inc. (PLSE) Stock Dips Following Announcement of USD$50 Million Private Placement

    Pulse Biosciences, Inc. (PLSE) stock prices were down by 11.58% some time after market trading commenced on July 2nd 2021, bringing the price per share down to USD$18.41 early on in the trading day.

    Stock Purchase Agreement

    July 1st 2021 saw the company announce that it had entered into a stock purchase agreement with Robert Duggan, the Chairman of PLSE’s Board of Directors. The agreement will see Mr. Duggan purchase 3,048,780 shares of the company’s common stock, with each stock being priced at USD$16.40 per share, which is the last reported sale price of the shares as of the market closing on June 30th 2021.

    Details of the Agreement

    Any debt owed to Mr. Duggan by the company as per the loan agreement from March 11th 2021 will be paid through the cancellation and extinguishment of the debt. Rather, Mr. Duggan will be compensated with common stock shares in a private placement that will write-offUSD$41 million in principal balance and USD$0.6 million in accrued and unpaid interest. As per the private placement, Mr. Duggan will invest new capital in the amount of USD$8.4 million into the company.

    CellFX Milestone

    The company announced on June 30th 2021 that the first patient in Canada had been successfully treated with PLSE’s proprietary CellFX procedure. Marking the first commercial use of the ceillular-focused CellFX System in Canada, the treatment is proven to clear common benign lesions, such as sebaceous hyperplasia, seborrheic keratosis, and cutaneous non-genital warts. CellFX further expands the company’s Controlled Launch program that is currently ongoing in both Europe and the United States.

    Continued Development

    PLSE continues to build its global foundation of key opinion leader adoption of the unique NPS technology. To this end, it is continuing its strategic rollout with thought-leading skin specialists from across Canada aiming to expand the clinical and commercial potential of the CellFX System for multiple aesthetic and therapeutic applications.

    Future Outlook for PLSE

    Armed with the influx of capital generated from their private placement, PLSE is poised to capitalize on the proliferation of its CellFX system. Investors are hopeful that the company will be able to consolidate and expand its market footprint to usher in significant and sustained increases in shareholder value.

  • Smith & Wesson Brands, Inc. (SWBI) Stock Dips Despite Easing of Firearm Regulations Across Three States

    Smith & Wesson Brands, Inc. (SWBI) stock prices were down by 12.63% shortly after market trading commenced on July 2nd, 2021, bringing the price per share down to USD$30.93 early on in the trading day.

    Easing of Firearm Regulations

    July 1st, 2021 saw the company’s stock start to rise following the easing of regulations making it easier to carry guns in public effect. The move came into effect across three different U.S. States: Iowa, Tennessee, and Wyoming. Despite Tennessee already ranking as one of the most violent states in the U.S, the list of states where the minimum age for carrying handguns without a permit is 21 is growing. Texas is set to join the list in September 2021.

    Scope of Market

    The U.S. has seen increased and prolonged buying activity amid the tensions created by the outbreak of the coronavirus pandemic, as well as the civil unrest across the nation over the Summer. March 2020 saw weekly federal background checks top 1 million, serving as a crude indicator of purchases. This is the first time the million mark has been exceeded since the government began tracking background checks in 1998. The record-breaking week saw 1.2 million background checks being conducted. NYT quoted data indicates 20% of all Americans who bought last year identifying as first-time gun owners.

    Quarterly Sales Report

    Quarterly net sales came in at USD$322.9 million in the fourth quarter of the fiscal year 2021, a sizeable 67.3% increase over the USD$193 million reported for the fourth quarter of fiscal 2020. Gross margin for the quarter was reported at 45.1%, up from the 32.2% reported for the prior-year quarter. GAAP net income for the quarter broke records at USD$89.2 million, representing a GAAP net income of USD$1.70 per diluted share.

    Full Year Non-GAAP Net Income

    Full-year non-GAAP net income for 2021 was reported at USD$251.5 million, representing USD$4.54 per diluted share. This is a massive increase over the USD$32.1 million reported for the prior year, which represented a non-GAAP net income of USD$0.58 per diluted share. GAAP to non-GAAP adjustments for income do not include expenses associated with the spin-off of the outdoor products and accessories business, Covi-18 related expenses, and other costs.

    Future Outlook for SWBI

    Armed with the easing of regulations and the strength of its financial reports, SWBI is poised to continue the trajectory of its success over fiscal 2021 into fiscal 2022 and beyond. Investors are hopeful that management will capitalize on the expanded scope of the market available to SWBI.