Category: Mid Day Movers

Shares of the Krystal Biotech, Inc. (KRYS) stock were falling in the intraday session today on December 1, 2021. KRYS stock price saw a downtrend of 7.32% to drop at $74.65 a share at the time of this writing. The trading volume was 793,589 on the last check. Let’s understand the reason behind this bearish sentiment.

What’s Happening?

Krystal Biotech recently announced the pricing of its previously announced underwritten public offering of 2,666,667 shares of its common stock. The per-share price under this public offering is $75.00 per share. Moreover, KRYS stock and its certain stockholders granted the 30-day options to the underwriter to buy additional 400,000 shares of its common stock at a public offering price. The company anticipates the gross proceeds of approximately $200 million before excluding the underwriter discounts, commissions, and other offering-related expenses. The offering is expected to end on or about December 3, 2021, after meeting customary closing conditions.

KRYS stock intends to use the net proceeds resulting from this offering along with its existing cash and cash and cash equivalents

• For the preparation of potential commercialization of VYJUVEKTM if it approves for dystrophic epidermolysis bullosa
• To advance the clinical and pre-clinical development of KB105 and KB104
• For the advanced development of KB407 and KB408 for cystic fibrosis and alpha-1 antitrypsin deficiency
• To speed up the emerging respiratory pipeline of KRYS stock.
• For the increased investment in technology platform development.
• For working capital as well as general corporate purposes.

Financial View of KRYS stock:

According to third-quarter 2021 financial results, KRYS stock spent $6.1 million in research and development expenses. These expenses were $5.1 million in the same quarter of last year. The general and administrative expenses were $9.6 million for the KRYS stock in the recently reported quarter. This represents a significant increase as compared to $4.6 million in the same period of the previous year. The company suffered a net loss of $15.6 million in the third quarter of 2021. Net loss for the first nine months of 2021 was $47.8 million. By the end of the third quarter, KRYS stock had $362.3 million in cash, cash equivalents, and investments.

Conclusion:

The announcement of underwritten public offering is the obvious reason for the falling per share price of the KRYS stock. The stock has performed well in 2021 as it gained almost 25% year to date.

The stock of NewAge, Inc. (NBEV) stock gained 3.27% in the current market to reach $1.17. At the end of the last trading session, the stock closed at $1.20. The one-year range of the stock was between $1.13 and $4.44, this is a loss of more than 65% value in its stock in the last trading session, the average volume of the stock traded was around 1.93 million.

The reasons for the NBEV stock uncertainty:

In the month of November, NBEV announced its 3^rd quarter results and new development in the discovery of new anti-aging formula. When the company announced its new formula the stock of the company increased for a couple of days and then declined the day after.

NBEV announced in the mid of November that they have discovered a new formula that fights against the effect of aging and filed for a patent that specific formula to protect its uniqueness. This formula is found to be effective in the support of heart health and anti-aging. This new discovery will be able to help in the formation of a medicine that will help to extra-ordinarily increase the natural secretion of an element called human growth hormone produced by the anterior pituitary gland.

Heart health decreases with aging. This product by the Colorado origin organic and healthy products manufacturer also said that the new product will also be effective in improving cardiovascular health.

Another reason which helped the stock to surge for a short span of time was the financial and operational results of its 3^rd quarter report. Following are the highlights of their third-quarter result.

Highlights of 3^rd quarter:

• The revenue of NBEV was $99.55 million in the 3^rd quarter of 2021. This is a 58.73% increase in revenue as compared to the 3^rd quarter of 2020. Last year in the same quarter the revenue was $62.72.
• The net loss was reduced by more than 80% to – ($2.70 million) in the 3^rd quarter of 2021. The net loss in the same quarter of 2020 was reported to be – ($14.13 million).
• The gross margin was 66.3% of the net revenue in the 3^rd quarter of 2021 as compared to 59.8% in the same quarter of 2020.
• The company’s cash and cash equivalent as of 30^th September 2021 was reported to be $46.83. This is an increase of 74.18% as compared to cash in hand in the same quarter of last year which was $26.89 million.

Conclusion:

The financials of NBEV showed a significant increase in the numbers and if the company remains consistent in delivering at the same pace, the profitability will increase with the inclusion of the new products. This will increase the trust of the investors in its stock to invest more in the expectation of a capital and dividend gain.

TG Therapeutics, Inc. (TGTX) stock provided the regulatory update today after which the stock saw a huge decline in the intraday session. TGTX stock price saw a downtrend of 42.02% to drop at $13.54 a share at the time of this writing. The trading volume as of now was 6,947,109. Let’s dig in to explore more of it.

What’s Happening?

TGTX stock today on November 30, 2021, announced that the U.S.A Food and Drug Administration has notified the stock that it is planning to host an Oncologic Drugs Advisory Committee (ODAC) meeting. The review of pending Biologics License Application (BLA)/supplemental New Drug Application (sNDA) for the combination of ublituximab and UKONIQ® has a connection with this meeting. The new drug application aims to treat adult patients suffering from chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL).

The CEO of the TGTX stock Michael S. Weiss appreciated the FDA’s efforts and emphasized the uniqueness of UKONIQ as a PI3K inhibitor. He believes that the data submitted so far will support the approval of U2 in CLL. The management is looking forward to the ODAC meeting as it is considering this meeting as the opportunity to highlight the important role which U2 can play to treat CLL.

Financial View of TGTX stock:

In the first week of November, TGTX stock announced the third quarter 2021 financial results according to which

• TGTX stock generated $2.0 million in net product revenue in the third quarter of 2021. The net product revenue for the first nine months of 2021 was $4.3 million.
• The company spent $52.0 million in research and development expenses in the third quarter of 2021. For the first nine months of 2021, TGTX stock spent $159.9 million in research and development expenses.
• The selling, general and administrative expenses of the TGTX stock were $34.9 million and $95.7 million in the third quarter and first nine months of 2021. These expenses were $35.3 million and $64.0 million in the same period of the previous year.
• TG Therapeutics suffered a net loss of $85.6 million in the third quarter of 2021. The net loss for the first nine months of 2021 was $254.8 million.
• By the end of the third quarter, the company had $381.4 million in cash, cash equivalents, and investment securities.

Wrap Up:

Things are not going well for the TGTX stock in the stock market as the sentiment is not positive so far. The stock has lost almost 61% in the past six months and 73% year to date.

The stock of Athersys, Inc. (ATHX) gained significantly in the current market following news that the report which is Placebo-Controlled, its Clinical Trial of Evaluating MultiStem Cell Therapy for Acute Respiratory distress syndrome (ARDS) was issued in the journal Intensive Care Medicine. The stock gained 5.39% in value to reach $1.07. At the end of the last trading session, the stock was closed at $1.02. The average volume of stock traded in the trading session was 1.74 million in total.

Why has ATHX stock gained value today?

The company issued a report that the double-blind placebo controlled trial phase ½ of MUST-ARDS evaluates the safety and efficacy of MultiStemcell therapy in patients that have ARDS. The study showed that the treatment was well observed in the clinical trial and it showed no signs of allergy and serious adverse reactions. The study also showed that in the trial it was observed that higher median ICU-free and ventilator-free days in the entire MultiStem cell recipients than the placebo group with respect to the 28-days timespan. Other major developments were found in the study which showed a positive breakthrough in the research done by the company. The results of the study layered a foundation for the FDA to grant the Regenerative Medicine Advanced Therapy (RMAT) for the Athersys, Inc. (ATHX) ARDS program. This made the investors think seriously about the stock of Athersys and it saw an increase in the trading volume of the stock.

Financial Highlights of their 3^rd quarter:

• As of 30^th September 2021, the company announced revenue of $4.8 million. The revenue in the same quarter of 2020 was $0.01 million. This is a significant increase of 5,472%.
• The company announced the research and development expense of $17.2 million, the R&D expense in the same quarter of last year was $18.5 million.
• The net loss was reported to be $16.2 million. The net loss in the same quarter of 2020 was $22.5 million.
• As of 30^th September 2021, the company had cash and cash equivalent equal to $49.67 million.

Conclusion:

After the news hit the market, the stock of the company skyrocketed in the Pre-market and gained value. When the treatment will roll out in the market, this is expected to bring a significant increase in the revenue for the company. So investors are expecting to get a solid increase in the capital gain of the stock.

ERYTECH Pharma Inc. (NASDAQ: ERYP) stock gained by 14.82% in the current market trading session. ERYTECH is a clinical-stage biopharmaceutical business focused on the development of novel red blood cell-based therapies for cancer and orphan illnesses. ERYTECH is creating a pipeline of targeted therapies for patients with significant unmet medical needs using its unique ERYCAPS platform, which uses a revolutionary method to encapsulate medicinal molecules inside red blood cells.

ERYP stock’ Update

ERYTECH Pharma has received US patent 11,141,468, which covers techniques for treating solid tumors with methioninase and asparaginase. ERYTECH presently has 16 international patent families with over 310 patents and 45 applications in its IP portfolio. ERYTECH’s proprietary red blood cell encapsulation technology (ERYCAPS), medicines for Oncology, Rare Metabolic Diseases, and Immune Modulation, as well as techniques for manufacturing Cargo-Loaded Red Cell Extracellular Vesicles, are all protected by these patent families (CLRCEV).

ERYTECH’s continued innovation in the supply of secure and reliable enzymatic activity for limiting tumors of critical nutrients is highlighted in US 11,141,468, entitled “Method of treating a mammal, including human, against cancer using methionine and asparagine depletion.” In Europe, China, and Korea, related family members have now been permitted.

According to the patent, ERYTECH scientists discovered that after earlier therapy with methioninase, some solid tumors, notably gastric cancer, were unusually sensitive to asparaginase treatment. While this study emphasizes the complexities of the overarching “tumor starving” strategy, it also indicates the strategy’s ability to weaken cancer cells, making them more vulnerable to lower doses of traditional chemotherapies. It’s worth noting that the claims apply to the treatment procedure regardless of whether the two enzymes are encapsulated in red blood cells.

Furthermore,

ERYTECH has a patent portfolio of more than 310 granted patents and over 45 pending patent applications comprising 16 patent families. These patent families cover ERYTECH’s patented red blood cell encapsulation technology, red cell-based clinical-stage oncology product candidates, preclinical initiatives in rare metabolic illnesses and immunological modulation, as well as techniques for creating cargo-loaded red cell-extracellular fluid.

The stock of TD Holdings, Inc. (GLG) declined by 1.51% in the current market in comparison to the previously closed value to reach $0.55. At the end of the previous trading session, the stock closed at $0.54. The average volume of stock traded in the trading session was around 2.92 Million.

Major developments in the company:

On 11 November 2021, TD Holdings, Inc. (GLG) announced that they entered into a security purchase agreement or SPA with their two affiliates plus some accredited investors for a private placement of its restricted common shares worth approx. $45.5 Million. The company plans to use the funds as working capital and meet other corporate expenses.

TD Holdings, Inc. (GLG) also said that they are entering into a non-binding letter of intent or LOI with China’s leading trading platform for online-offline e-commerce commodities. TD Holdings, Inc. (GLG) showed intent to acquire between 30-65% equity interests of Shenzhen Tongdow Internet Technology Co., Ltd. Both the companies agreed on setting the value of STIT between $145 million to $180 million.

Reason for the stock decline:

For the past 5 years, the company is at a constant loss. This year’s first two quarters were profitable. The company made a profit for the first time in a while. The stock of the company was seen to be as low as $0.34 from the all-time high of $17.40. Previous two quarters’ profits are extremely good, which is bringing the trust of the investors back and the trading volume of the shares has increased significantly.

Financial Highlights of 3^rd quarter report:

• Revenue of the company was reported to be $54.77 million. This is a 697% gain from the revenue of the same quarter of the last year.
• Net income of the company was $0.46 million for the quarter ended on 30^th September 2021.
• Diluted EPS was zero.
• The company had cash in hand and cash equivalents of $4.9 million.

Conclusion:

After reporting the continuous loss for the company, the last 3 quarters were comparatively better for TD Holdings, Inc. (GLG) because it reported a net income for the first time in a while. However, the financial analysts have forecasted the price to go up as high as $60. But this requires the company to be consistent with its performance.

The stock of Faraday Future Intelligent Electric Inc. (FFIE) is declining in the current market. The stock was traded at $6.12 and declined 6.70% from the previously closed value. When the last trading session closed the stock closed at $6.57. The average volume of the stock traded in the trading session was around 1.87 Million. The reason could be linked to the investigation started by its board of directors in response to the fraud allegations and delay of quarter 3 results due to this specific reason.

Delay of the quarter 3 results and inaccurate disclosures allegations:

This year the company went public and they announced some forecasted reports for their upcoming financial quarter and business development. A data mining company also invested $25 million just before the electric startup went public. The company’s stock was going on an upward trajectory as they announced some big numbers in electric SUV’s reservations by the customers.

But J Capital accused the company of lying about those reservations. After which the Faraday Future Intelligent Electric Inc. (FFIE) announced a special committee of independent directors and hired a law firm to investigate the allegations. J Capital also accused the electric start-up founder JiaYuetingunfairly of taking advantage of the recent public listing.

Financial highlights:

The company is yet to announce its results for the 3^rd quarter of 2021. This delay is due to the fraud allegations made against them. The board of directors wants to investigate the matter before announcing the 3^rd quarter results.

However, the company announced that they lost $280 million in the 3^rd quarter but affirms that they should deliver the goal in July 2022. Their financial results for the 2^nd quarter were:

• Revenue is zero.
• Net loss was $52.78 Million.
• Total cash in hand was reported to be $52.53 Million.

Conclusion:

The Faraday Future Intelligent Electric Inc. (FFIE) says that they are continuously working in order to complete the investigation, but they are not sure about the duration of the investigation, its outcome, or how it affects their financial results. The results of the investigation will have a strong effect on the credibility of the company and if the allegations prove to be true it will cost huge money to the investors who invested in Faraday Future Intelligent Electric Inc. (FFIE) stock.