Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

This is why Jaguar Health Inc. (NASDAQ:JAGX) Health Dropped 50%

Jaguar Health Inc. (NASDAQ:JAGX)

Jaguar Health Inc. (NASDAQ:JAGX) shares fell over 50% after the natural-products pharmaceutical company announced the pricing of an underwritten public offering of 21.3 million shares. The company expects gross proceeds of $4.25 million from the offering priced at $0.20 a share. The offering should close on or about October 3, 2017.

Investors Reaction

Investors pushed the stock to a new all-time low on the public offering news after the stock broke a key support level. Jaguar Health Inc. (NASDAQ:JAGX) has already recorded a new 52-week low of $0.17 a share as it remains under immense selling pressure.

Jaguar Health Inc. (NASDAQ:JAGX)

The offering appears to have spooked some investors given that it could plunge the company into more debt. The offering could also result in further stock dilution. Jaguar Health Inc. (NASDAQ:JAGX) plans to use proceeds from the offering for general corporate purposes as well as for working capital.

Part of the funds are also to be used for commercialization of the company’s FDA approved human prescription drug Mytesi. The company’s subsidiary Napo Pharmaceuticals has already filed a Chemistry Manufacturing and Controls (CMC) supplement with the U.S Food & Drug Administration (FDA).

Mytesi Commercialization

Mytesi is approved for symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS. The two companies are currently pursuing approval for its use in the treatment of chemotherapy-induced diarrhea for patients undergoing chemotherapy for cancer. The drug is also being tried for the treatment of rare disease indications for infants and children with congenital diarrheal disorders.

“Chronic diarrhea remains a significant complaint of people living with HIV/AIDS, particularly those who are older and have lived the virus in their gut for over 10 years. This is a growing demographic of the HIV community, and Mytesi® is the only antidiarrheal studied in and U.S. FDA-approved for the symptomatic relief of noninfectious diarrhea,” said Pete Riojas, Napo’s national sales director for Mytesi

Jaguar Health Inc. (NASDAQ:JAGX) subsidiary has already expanded its national sale force as it moves to market Mytesi in the U.S. For starters, the company will target sales in New York, Miami, Atlanta and surrounding regions. The drug is currently available in all the 50 states through the Medicaid program. It is also covered by the top 10 commercial insurance plans, which represent more than 245 million American lives.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $JAGX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Tuesday Morning Corporation (NASDAQ:TUES)

Tuesday Morning Corporation (NASDAQ:TUES) – Push For CEO Ousting

Tuesday Morning Corporation (NASDAQ:TUES)

Tuesday Morning Corporation (NASDAQ:TUES) shares jumped 11.1% after the off-price retailer reaffirmed its FY2018 outlook. The retailer expects same-store sales to increase 2% – 5% in addition to a significant improvement in EBITDA. The company expects its first-quarter sales to increase by the same amount.

Disappointing Financial Results

Shares of Tuesday Morning Corporation (NASDAQ:TUES) broke through a key resistance level, on the embattled retailer reaffirming its full year and first quarter sales. The remarks support the uptrend that began last month after the stock had plunged to multi-year lows. However, the stock is still down by more than 50%, year to date.

Tuesday Morning Corporation (NASDAQ:TUES)

The off-price retailer is under pressure to survive at the backdrop of a vicious retail environment that continues to dent its prospects. The retailer has already relocated 52 stores, opened 21 and expanded 13, as it continues to explore ways of accelerating sales growth.

Tuesday Morning Corporation (NASDAQ:TUES) felt the wrath of Wall Street after reporting a severe decline in earnings for the better part of the year. For the fourth quarter, the company says it generated a net loss of (-$17.1) million which led to a full year net loss of $32.5 million.

Management Changes

The underperformance has already led to calls for the resignation of the current Chief Executive Officer, Steve Becker. Jeerddi II LP and Purple Mountain Capital Partners LLC which own 2.4% of the company are pushing for management changes. The two firms are pushing for the appointment of Michael Barnes as the new CEO to replace Becker.

The board of directors has remained firm; refusing to cave into pressure from the two stockholders. Two hedge funds have since threatened to publicly nominate Barnes and Purple Mountain founder James Corcoran for the board. Calls for the firing of the current CEO comes on the heels of his appointment to the position.

“It is regrettable that Jeerddi has chosen to disregard the company’s progress and, instead, propose what we believe is an ill-advised director slate while pursuing a disruptive and protracted proxy fight at the expense of all Tuesday Morning stockholders,” said Terry Barman, chairman of the company’s board of directors.

Tuesday Morning Corporation (NASDAQ:TUES) will hold its annual general meeting on November 15, where shareholders are to vote for members of the board of directors.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TUES and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Avinger Inc. (NASDAQ:AVGR)

Avinger Inc. (NASDAQ:AVGR) Awarded CE Mark

Avinger Inc. (NASDAQ:AVGR)

Shares of Avinger Inc. (NASDAQ:AVGR) more than doubled in value after the company announced its system for the treatment of in-stent restenosis, Pantheris® Lumivascular atherectomy has been awarded a Conformité Européenne (CE) marking designation. The stock was up by 119% to end Wednesday’s trading session at $0.46 a share.

Avinger Inc. (NASDAQ:AVGR)

AVGR Stock Performance

However, Avinger Inc. (NASDAQ:AVGR) continues to trade near all-time lows after plunging from its January highs of $3.50 a share.

The CE mark which validates the use of the in-stent restenosis system in Europe could be the catalyst that will help push the stock up from the current lows. Demand for alternative treatment options for the condition, which normally results in narrowing of blood vessels, is on the rise.

“CE Marking for this particular indication is an important milestone for Avinger that addresses an area of unmet clinical need for patients suffering from PAD. Onboard image guidance coupled with directional plaque excision offers the interventionist clear benefits when treating in-stent restenosis and represents another opportunity to improve patient outcomes,” said CEO, Jeff Soinski.

Class Action Lawsuit

However, Avinger Inc. (NASDAQ:AVGR) remains the subject of increased scrutiny on Wall Street over claims that certain officials failed to fulfill their fiduciary duty to shareholders on or around January 30, 2015. A class-action lawsuit filed by Bronstein, Gewirtz & Grossman, and LLC alleges that the Registration Statement and Prospectus that Avinger used for its Initial Public Offering contained materially false and misleading statements.

The lawsuit goes on to claim that Avinger Inc. (NASDAQ:AVGR) did not have an adequate sales and marketing personnel needed to accelerate sales growth for the lumivascular platform products. The law firm also alleges that the company failed to notify investors that it was experiencing problems with the robustness of the lumivascular platform devices.

Bronstein, Gewirtz & Grossman, LLC claims that Avinger failed to disclose that physicians and hospitals were demanding more extensive and comprehensive training before they bought the company’s products.

The filling of the lawsuit follows the share price decline in Avinger Inc. (NASDAQ:AVGR from $13, as of the IPO date, to current lows of $0.46 a share. The class action lawsuit seeks to recover the damages that shareholders incurred on the company providing misleading statements.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $AVGR and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Tintri Inc. (NASDAQ:TNTR) Appoints Michael Lombardo

Tintri Inc. (NASDAQ:TNTR)

Tintri Inc. (NASDAQ:TNTR) shares jumped 7.44% after the storage management solutions provider announced the appointment of Michael Lombardo as the Vice President of Channel Sales. His appointment follows the launch of EC6000 all-flash series and the Tintri Cloud.

Tintri Stock Performance

Analyst sentiments on Tintri Inc. (NASDAQ:TNTR) have turned sour ever since it became a public company. The stock is already down by more than 50% from its IPO price as investors continue to question its long-term growth prospects.

Tintri Inc. (NASDAQ:TNTR)

Fuelling the sell-off wave are reports that the company might have provided misleading statements in the run-up to its Initial Public Offering. According to a number of complaints lodged by law firms, the management team is accused of failing to disclose that the company was experiencing sales attrition as well as distraction and disruption in the business.

Tintri Sales Growth

Sales in the quarter coming in at the lower end of expectations and guidance appears to support concerns that the company might have withheld information from shareholders. Tintri Inc. (NASDAQ:TNTR) has sought to quash the concerns by unveiling new products and reiterating that it is on course to meet its growth targets.

The appointment of Leonardo is seen by observers as a move by Tintri to affirm its commitment to accelerating sales growth. He joins the company with over 20 years’ experience which the company believes will be crucial as he moves to oversee national account teams and sales channels.

“Tintri is continuing to expand on its channel commitment—through training and certifications we’ve helped our partners build their cloud businesses. Now Michael, especially through his experience with national partners, will play a critical role in refining our channel strategy and driving channel sales forward,” said Tom Ellery, Senior Vice President of Americas and Federal at Tintri.

Separately, Tintri Inc. (NASDAQ:TNTR) will be showcasing its newly launched solutions EC6000 series at the Microsoft Corporation (NASDAQMSFT) Ignite conference in Orlando, Florida. The company will also demonstrate its deep integration with the Microsoft ecosystem as it seeks to help joint customers automate storage management and enable a number of enterprise cloud benefits.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TNTR and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Ascena Retail Group Inc. (NASDAQ:ASNA) Jumps on Q4 Financials

Ascena Retail Group Inc. (NASDAQ:ASNA)

Ascena Retail Group Inc. (NASDAQ:ASNA) shares rallied 6.0% after the retailer posted stronger than expected fourth-quarter earnings. The New Jersey-based retailer posted a 4% decline in same-store sales which was better than the 8% decline analysts were expecting.

Ascena Sales Decline Concerns

The stock had initially rallied to the $2.60 a share mark before it dropped to end Tuesday’s trading session at $2.30 a share. The 6.0% rally did little to reverse a strong selling pressure that has followed the stock this year. Ascena Retail Group Inc. (NASDAQ:ASNA) is currently trading in a downtrend at the lower end of $2.24 -$ 2.63 trading range.

Ascena Retail Group Inc. (NASDAQ:ASNA)

Ascena Retail Group Inc. (NASDAQ:ASNA) has come under pressure in recent quarters over growing concerns of declines in same-store sales. Net sales in the fourth quarter totaled $1.65 billion compared to $1.812 billion reported a year ago. The company attributes the decrease to pricing pressures and store traffic.

Chief Executive Officer, David Jaffe, has since warned that challenging marketing conditions could affect the company’s ability to achieve significant sales growth going forward.

“To be clear, conditions remain challenging – store traffic was down mid-single digits for the quarter, and we are planning for this trend to continue for the foreseeable future. While comp sales performance was several points better than our guide, we were not pleased with the results, and we will not be satisfied until we deliver positive sustained enterprise-level comp sales,” said Mr. Jaffe.

The company plans to support top-line growth by increasing investments in cutting-edge planning and marketing capabilities. Ascena Retail Group Inc. (NASDAQ:ASNA) has also embarked on a cost-saving drive where it hopes to achieve $250-$300 million in cost savings.

Q4 Earnings

Gross margin decreased to $951 million or 57.4% of sales in Q4 2017 from $1.041 billion or 57.5% of sales last year. The decrease was because of a decline in comparable sales as well as an extra one week included in last year’s earnings. The company reported a net loss of (-$16) million or (-$0.08) a share down from a net income of $14 million reported a year ago.

Cash and cash equivalent as of the end of the quarter stood at $326 million with $224 million held outside the U.S. Ascena Retail Group Inc. (NASDAQ:ASNA) ended F2017 with a total debt of $1.597 billion.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ASNA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Jaguar Health Inc (NASDAQ:JAGX) Tightens Control of Mytesi

Jaguar Health Inc (NASDAQ:JAGX)

Jaguar Health Inc (NASDAQ:JAGX) jumped nearly 19% in the last session as the market reacted positively to an announcement about regaining certain rights to the key ingredient in its drug Mytesi.

The stock rose 18.74% to $0.49, thus pushing Jaguar’s market cap up to more than $32.7 million. The gains put Jaguar’s stock gains so far this year at 28.4%. Over the last 12 months, Jaguar shares have dipped to a low of $0.34 and peaked at a high of $1.53.

Jaguar Health Inc (NASDAQ:JAGX) is a pharmaceuticals company focused on the developing and commercializing of innovative gastrointestinal treatments for human and veterinary use.

Jaguar Health Inc (NASDAQ:JAGX)

Regaining rights to Mytesi

On September 25, Jaguar Health Inc (NASDAQ:JAGX) announced that its 100% owned subsidiary Napo Pharmaceuticals has retaken certain rights to crofelemer, the active ingredient in Mytesi, from Glenmark Pharmaceuticals. In a 2005 agreement, Jaguar licensed certain rights tied to development and commercialization of crofelemer to Glenmark, which is based in India. Some of those rights have been returned to Jaguar, bolstering its control of Mytesi – a relief of diarrhea in HIV patients.

The amended agreement with Glenmark returns to Jaguar Health Inc (NASDAQ:JAGX) commercial rights to crofelemer in 141 countries, including India. Glenmark is Napo’s primary manufacturer of crofelemer. Under the 2015 agreement, Glenmark retained development and commercialization rights to crofelemer in India and 140 other countries in the emerging world. The commercial rights to crofelemer in India and those other 140 countries are returning to Jaguar.

Global control of Mytesi

Retaking the rights from Glenmark now gives Jaguar Health Inc (NASDAQ:JAGX) commercial control of Mytesi for all indications globally.

Jaguar Health Inc (NASDAQ:JAGX)’s Mytesi is approved in the U.S. for relief of noninfectious diarrhea in adults with HIV who are on antiretroviral therapy. Jaguar, alongside its Napo subsidiary, is working to expand the treatment label of Mytesi so that it can squeeze even more revenue from the product. For example, Jaguar is pursuing approval of Mytesi for treatment of chemotherapy-induced diarrhea (CID).

In addition to CID, Jaguar Health Inc (NASDAQ:JAGX) is also working to have Mytesi cleared for use in infants and children with short bowel syndrome (SBS). The company is also developing Mytesi for treatment of a wide range of other indications – all of which it now has global commercial control following the retaking of crofelemer rights from Glenmark.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $JAGX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Izea Inc. (NASDAQ:IZEA)

Izea Inc. (NASDAQ:IZEA) Explodes 64%

Izea Inc. (NASDAQ:IZEA)

Izea Inc. (NASDAQ:IZEA) shares rallied 64.1% after the operator of a premier online marketplace launched a “first of its kind” service designed to help IZEAx clients distribute 3D assets to social media influencers. Dubbed Augmented Sponsorship the new service leverages ARKit technology in iOS 11 to simplify the placement of virtual 3D objects and animations in real-world environments.

Investors Reaction

The new service appears to have strengthened investor’s sentiments on Izea Inc. (NASDAQ:IZEA) as seen by the stock’s performance in recent trading sessions. Last week’s rally saw the stock rise to highs of $4 a share before it retreated to close the week at $3.20.

The rally helped reverse a downtrend that had engulfed the stock in recent months, plunging it to multi-year lows. IZEA is still trading in a downtrend and needs to close above $4 if an uptrend is to resume. It appears that the Augmented Sponsorship service could be the catalyst to revitalize the stock’s performance on Wall Street.

Izea Inc. (NASDAQ:IZEA)
One month IZEA stock price chart

Augmented Sponsorship

Izea Inc. (NASDAQ:IZEA) has already launched the service with the nations’ leading provider of transition services CORT. The service provider is to use the new technology to provide 3D models of furniture to social media influencers. By doing so, the influencers should be able to place virtual furniture in their home and in return, share their experience with their followers.

“Our platform provides dynamic targeting and delivery of 3D assets to individual influencers, enabling those influencers to place and manipulate virtual objects, and include them in their content creation process. This opens up a whole new way for Influencers to engage with brands and produce compelling sponsored visual content for their audiences,” said CEO Ted Murphy.

Pursuing Influencers

This is not the first time that Izea Inc. (NASDAQ:IZEA) has sought to leverage the power of influencers on social media when it comes to marketing. The premier online marketplace was the first to create a platform for sponsored blog posts, sponsored tweets as well as sponsored check-ins. Since 2016, the company has enabled over 3.5 million transactions between brands and creators.

The IZEAx platform allows Izea Inc. (NASDAQ:IZEA) to bring new content creation tools to influencers allowing them to popularize products that are difficult and expensive to market, such as furniture. The platform also opens up a wide a range of possibilities outside product placement.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $IZEA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) Investors Anticipate a Robust Q3

Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) shares rallied 17.5% after the lifestyle product company said increased consumer demand and new product launches should lead to robust Q3 financial results. Investors also pushed the stock higher after the U.S. News Express selected the company’s subsidiary, Diamond Sofa, as one of the top 5 Asian-American brands.

NVFY Stock Performance

The string of positive news helped push the stock to a key resistance level of $1.61 a share, above which it could make a push for the $2 a share mark. The stock continues to trade in a range after dropping from April highs of $2.60 a share. NVFY shares are down by more than 10% for the year.

Nova Lifestyle Inc (NASDAQ:NVFY)
One month NVFY stock price chart

The innovative designer and distributor of modern lifestyle products recorded welcome profits for the summer months. Strong customer demand saw the company generate a profit of $1 million with the growth rate expected to continue to the end of the year.

“We are seeing solid growth trends in our business along with healthy profit margins. We hope to significantly expand online sales by partnering with E-commerce giants such as Amazon.com, Hayneedle.com and others,” said CEO, Tawny Lam.

Business Transformation

Nova Lifestyle Inc. (NASDAQ:NVFY) has completed a milestone business restructuring that began late last year and continues to fuel the current growth phase. The company has successfully transformed itself from a manufacturing-oriented, asset-heavy enterprise into an asset-light operation, focused on efficient distribution and marketing.

Strong ordering activity from leading retailers such as Amazon, Wayfair, and Hayneedle also continues to support the belief that the company will post an impressive third quarter and full year. Its subsidiary Diamond Sofa is also doing business with four furniture subsidiaries owned Berkshire Hathaway.

Sofas beds and Coffee table sales accounted for a huge chunk of the company’s net sales for the quarter ending June 30, 2018. In a bid to remain competitive in the business, Nova Lifestyle Inc. (NASDAQ:NVFY) has introduced a number of new products, including the Chateau and Crawford lines, as it continues to explore ways of diversifying its revenue streams. The company has also met with a number of large global buyers as it looks to expand its footprint on the international scene.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Ocean Rig UDW Inc. (NASDAQ:ORIG)

Ocean Rig UDW Inc. (NASDAQ:ORIG) Craters after Court Verdict

Ocean Rig UDW Inc. (NASDAQ:ORIG)

Ocean Rig UDW Inc. (NASDAQ:ORIG) shares fell 47.89% after a U.S. bankruptcy court issued an order granting comity and ordering implementation of Cayman Islands Schemes of arrangement in the U.S. The Schemes affect the financial indebtedness of the company and its subsidiaries. Implementation of the schemes will result in the conversion of the firm’s $2.67 billion debt into distributable value.

Ocean Rig UDW Inc. (NASDAQ:ORIG) fell on huge volume after reiterating that the court verdict will not in any way affect its operations. The company also sought to avert a further slide of the stock by reiterating that creditors and vendors will receive their dues as they are not affected by the schemes.

Investors continue to push the stock lower amidst growing concerns over the impact of the ongoing restructuring. The stock is already down by more than 70% for the year as it continues to trade at multi-year lows.

Reverse Stock Split

In what is seen as an attempt by the company to shore up the stock price that continues to trade at all-time lows, Ocean Rig UDW Inc. (NASDAQ:ORIG) has announced a new reverse stock split. The company is to implement a 1-for-9,200 stock split, approved in April.

The reverse stock split is to come into effect on September 21, 2017 and will result in the conversion of 9,200 issued common stock into one share of common stock. No fractional shares will be allowed once the split is complete. Any shareholder with a position of less than 9,200 shares will receive a cash payment.

“As of the date of this press release, the Company had 82,586,851 common shares issued and outstanding. Effecting the reverse stock split will reduce the number of issued and outstanding common shares to approximately 8,976 shares (as may be adjusted due to rounding),” Ocean Rig in a press release.

Extraordinary Shareholder Meeting

Ocean Rig UDW Inc. (NASDAQ:ORIG) has also announced plans to hold an extraordinary shareholders meeting on November 3, 2017. Top on the agenda at the meeting will be discussions on the ongoing restructuring. The company also plans to discuss authorized share capital reduction in addition to redesigning issued and unissued authorized common shares as Class A, which will trade under the symbol ORIG. Class B shares, on the other hand, are to be used to reduce the number of unissued authorized preferred shares.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ORIG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Arbutus Biopharma Corp (NASDAQ:ABUS)

Arbutus Biopharma Corp (NASDAQ:ABUS) Rallies On Clinical Results

Arbutus Biopharma Corp (NASDAQ:ABUS)

Shares of Arbutus Biopharma Corp (NASDAQ:ABUS) rallied 20.7% after the biopharmaceutical company announced that its treatment for ATTR amyloidosis and polyneuropathy, Patisiran, met its primary and secondary endpoints in a Phase 3 study. In addition to meeting endpoints, the study also validated the company’s LNP delivery technology.

Stock Performance

Wednesday’s rally did not come as a surprise as Arbutus Biopharma Corp (NASDAQ:ABUS) has been on a fine run since the start of the year. The stock is already up by more than 40% as it continues to outperform the overall industry.

The stock is currently trading at the upper end of a tight trading range as it closes on its 52-week high of $7.85 a share.

Arbutus Biopharma Corp (NASDAQ:ABUS)
One month ABUS stock price chart

Patisiran is Arbutus candidate drug under development as part of a licensing deal with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). Buoyed by the top line Phase 3 trial results, plans have been made to file a New Drug Application (NDA) for the drug before the end of the year. The company also intends to file a Marketing Authorization Application early next year.

“We are very pleased with the successful outcome of Alnylam’s APOLLO Phase 3 study of patisiran. This is an important achievement for patients and for the field of RNAi therapeutics. […] Our LNP technology represents the most proven delivery technology for the systemic delivery of nucleic acid-based therapeutics,” said CEO Mark Murray.

Arbutus Pipeline

Arbutus Biopharma Corp (NASDAQ:ABUS) is entitled to single-digit royalties on the sales of Patisiran upon regulatory approval. In addition to Patisiran, the biopharmaceutical company is also developing a number of treatments for patients suffering from chronic HBV infection. The company is currently developing products that will be combined with approved agents.

Arbutus Biopharma Corp (NASDAQ:ABUS) research has also added a number of new agents that are poised to generate great value as evidenced by AB-506, next-generation capsid inhibitor and AB-452 an HBV RNA destabilizer. Developing a robust pipeline of candidate drugs is part of the company’s push, geared towards becoming a key player in the treatment of hepatitis B.

According to Hepatitis B Foundation, there are more than 257 million people worldwide infected with the Hepatitis B virus. The U.S alone presents a $3.5 billion market opportunity as there are more than 2 million infected with the virus.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ABUS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.