Research – ProMIS Neurosciences Inc. (PMN:CA) – Advancing Novel Antibody Therapeutics for Neurodegenerative Diseases

Monday, April 20, 2020

ProMIS Neurosciences Inc. (PMN:CA)

Advancing Novel Antibody Therapeutics for Neurodegenerative Diseases

ProMIS Neurosciences, Inc., a development stage biotech company, discovers and develops precision medicine therapeutics for the treatment of neurodegenerative diseases, primarily Alzheimer’s disease (AD) and amyotrophic lateral sclerosis (ALS). Its proprietary target discovery engine is based on the use of two complementary techniques. The company applies its thermodynamic, computational discovery platform—ProMIS and Collective Coordinates to predict novel targets known as Disease Specific Epitopes (DSEs) on the molecular surface of misfolded proteins. Its lead product candidates include PMN310, a monoclonal antibody for AD; PMN350, a monoclonal antibody for AD; and PMN330, a monoclonal antibody targeting toxic prionlike forms of AßO for AD. The company is also developing prospect therapies targeting the neurotoxic form of the tau protein in AD; and superoxide dismutase 1 and TAR-DNA binding protein 43 in ALS and frontotemporal dementia, as well as alpha synuclein in Parkinson’s disease and Lewy body dementia. The company was formerly known as Amorfix Life Sciences Ltd. and changed its name to ProMIS Neurosciences, Inc. in July 2015. ProMIS Neurosciences, Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.

Cosme Ordonez, MD, Ph.D., Senior Life Sciences Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    ProMIS Neurosciences is developing novel antibody technologies. ProMIS has the capabilities to detect “Disease Associated Epitopes” on the surface of proteins, a technology with multiple applications in medicine. The Company is advancing programs for the treatment of Alzheimer’s disease, Parkinson’s disease and Amyotrophic lateral sclerosis (ALS).

    Development of antibody-based test for Covid-19. Recently, ProMIS announced a collaboration to develop a sensitive and specific laboratory test to detect antibodies against SARS-CoV-2, the virus causing Covid-19. Given ProMIS’ experience with peptide and antibody-based technologies, we believe the Company and its collaborators will be able to develop a specific test without cross-reactivity with other viruses in the coronavirus family. Thus far, high test specificity has been…



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Why Index Funds Could be a Mistake in 2020

The 2020 Investment Buzzword No one is Using Yet!

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

Today when investors say they are “in the market” or “out of the market,” they most often are using shorthand to discuss the stock market. This is understood, even though there are many other active investment markets.  The others don’t get as much attention. In fact, because of current investment practices, the term “in the market” usually implies exposure to one of the major index averages.

It wasn’t always this way. Not too long ago, investors would build a portfolio working with a broker and buy a small basket of stocks. Commissions were high, but a good broker was worth the price because of the in-depth research they conducted. Back then, “in the market” didn’t mean broad exposure to 500-2000 holdings.  Far fewer. The reason for the change, of course, is an evolution that gained momentum around 1980. It was then that mutual funds started to become understood throughout households, many of which had never been “in the market” before.  Mutual funds allowed investors, even small ones, to benefit from what has been a cyclical but rising market, but with much lower entry fees.

The combination of the ease with which large mutual funds allowed an investor to gain or reduce exposure to equities, the comfort of being extremely diversified, the rising trend in stock prices, and the painless built-in fee made mutual funds an easy sell for fund companies.

Once invested, to determine if the fund manager was doing a good job, marketers began benchmarking their funds against major market indexes on the futures exchange (Dow, S&P, and later Russell). Investors were taught that good returns were “index” returns. Investors began to measure if their fund performed satisfactorily by how it stacked up against a broad index.  When this became the standard by which investors measured success, mutual fund companies created index funds with the objective of meeting or beating a specific index. Here is where they ran into some problems.

Matching an index, which has no fees, no slippage, and no flow of assets in or out (often at the worst times), is mathematically impossible for a fund manager without taking on additional risk. Index mutual funds often fell short of their benchmark. It wasn’t their fault. When markets are rising, investors put money into the fund, this adds to the average price of the underlying holdings. When markets fall abruptly, investors often pull money out. This locks in lower performance and prevents the fund manager from buying at lower prices. Also, managing fund flows requires a cash position; this dampens fund performance. Innovative financial engineers then addressed the issues and came up with a product that was more capable of tracking a major index return. The product was exchange-traded funds, and these became more popular to people whose goal was “market” returns.

Lower Cost Options

With the goal of index investing and tracking much closer to index returns,  exchange-traded funds (ETFs) made their debut in early 1993. State Street Global Advisors created the first which was the S&P 500 Trust (SPDR). This new fund type had lower fees and held a set amount of the underlying stocks. As a result, the fund trades virtually tick for tick with the S&P 500 index. SPDR gained popularity very quickly and is still the most actively traded ETF. Investment advisors have been able to lower the cost to their index fund invested clients as they moved them into this new innovation.  

Today there are ETFs that cover all the major indexes. What’s better is they now also cover all the underlying sectors within an index. So if you don’t like Financials but feel Energy is undervalued, you are no longer limited to just receiving broad index returns. You can pick and choose the categories within the equity markets and focus more heavily on one sector over another.  Building a custom portfolio using indexed sectors has become a more refined way to give investors above-average potential.

Sector Bifurcation

Market sector movement at the start of 2020 is a solid example why those that maintain an active investment portfolio should do more than just sit idle with broad market index funds.

The graphic below demonstrates how the Spyder defined sectors deviate drastically from each other. The economy is going through a period where the markets are bifurcated. There are sectors that are strong and rising while there are sectors that are weak and sinking. This is different from recent experiences where we saw all sectors generally moving in the same upward direction. The markets are likely to remain bifurcated and volatile until the pandemic crisis is history.

For investors looking to “pick their spots” in what is a more difficult market, they now have the ability to target sectors they deem superior and avoid those with low probability of satisfaction. The six-month chart below (Red is S&P 500, SPDR) shows that back in November Healthcare began outperforming the major index while Energy was falling off quite a bit. That trend continued and accelerated during the pandemic. Investors in the Healthcare ETF are up 10% over the past six months, Energy sector investors are down over 40%.

 

 

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Investors should consider a bias in their holding toward sectors with a more positive outlook and away from those with more negative using targeted ETFs.

Further Bifurcation

Within investment categories, especially during the current crisis, there is further bifurcation. Investing strictly in ETFs, even sector ETFs,  means still accepting the bad with the good. The pandemic has clearly altered the direction of individual company earnings. Sector funds don’t take this into account. Here is an extreme example:  Midway through last quarter investors began to flee from the category of hospitality. This was wise, the sector includes hotels, travel, restaurants, and event services. Poor performance within this sector was all but guaranteed.

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Avoiding an ETF focused on hospitality certainly turned out wise as forecasted. But what was also easy to forecast is that within the sector there would be opportunities in meal-kit companies like Blue Apron (APRN). The conclusion from this is, not only should investors no-longer just “buy the market” they should not just buy sector funds either. Having a core in the broader market is fine, weighing that more heavily with some sector funds is also good, but stock-picking is becoming more important than ever.

 

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Here’s another example, Energy was one of the worst beaten down sectors. Even within the energy sector there were huge gains to be found in companies like COG. Fortunately, investing in individual positions is no longer as expensive per transaction. Picking targeted companies makes more sense than ever.

ETF investing is still a low-cost way for a small investor to benefit from overall market growth without experiencing brokerage fees cutting into their results. They have had their reign and are now just another option to keep in the mix. This has become extremely apparent over the past few weeks, and it appears it will be an issue for a while. Investors may now be entering a new investment cycle where a wider variety of vehicles are implemented.

Just like with other cycles, we seem to be moving back toward where we started, individual stocks.

Finding Opportunity

Looking back since the beginning of the year and looking forward to the foreseeable future, we are seeing some sectors of the market doing substantially better than others. The market is bifurcated and no longer finds most industries, sectors, or even segments within sectors moving in-synch. The differences within each category and within each company will impact a portfolios performance more than it did just nine months ago.

The low and no cost of trading today all but eliminates the cost of commissions from things investors worry about. This cost was a big reason that investors moved to funds, to begin with. The other concern was expertise. As mentioned earlier, investors moved to funds in part to not have to rely on a broker and their research. Today, the internet has brought the cost of quality research down to approximately zero. Just logging on to your computer can put any level investor in touch with more information than any full-service broker ever had in 1980. It also can flood you with bad information and pseudo- research and even schemes to artificially pump stocks. Make sure you can trust where you’re getting your information from. Providers of quality research such as Morningstar,
Channelchek, or Standard &
Poor’s
are either partially or completely no cost to subscribers. These, along with information from an online broker, should be plenty for most self-directed investors or even advisors. Sites that promise the next hot stock should be viewed with caution.

Take Away

There are more investment vehicles, low-cost options of transacting, and choice than ever before. Investors that lazily place money in the overall market are not trying to enjoy the best possible returns. The bifurcated market of today is likely to continue. Sectors that will win are often being spelled out for us as we listen to how various stimulus packages are being created. Individual stocks can have extreme performance if they have a unique characteristic that puts their product or service in high demand in changing times. The various research companies offering top-tier information on equities is indispensable as you look for potential opportunity.

Suggested Reading:

Where
Investors Found Double-Digit Growth in Q1

There’s
Opportunity When Market Indexes are Adjusted

Michael
Burry Says Covid-19 Cure Worse that the Disease

 

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Sources:
SPDR Sector Tracker

Michael Burry says COVID-19 Cure Worse than the Disease

“The Big Short” Dr. Michael Burry’s Views on the Shutdown

When famous hedge fund manager Dr. Michael Burry clears his throat, Wall Street investors take note–Then they take positions. This past Monday, his firm, Scion Asset Management, added to their position of GameStop. When news got out that Burry was adding to GME, it caused the stock to rise 22%. So, if Burry takes a position on anything else, including public policy, economics, or the pandemic, the medically trained doctor turned hedge-fund manager, also gets attention.

Burry, who was made famous by the movie “The Big Short,” has recently been very outspoken on his Twitter accounts. Mixed in with his regular Tweets on market activity, he’s been sharing his views on the economic shutdown. Overall, his position on the policy can be summarized by saying he believes lockdowns meant to contain the virus are more harmful than the disease.

Source:
Twitter account @BTCScionCapital 

Background

Burry studied Economics in undergrad but went on to become an M.D. with residencies in pathology and neurology. During his residency years, he spent his free time applying concepts of securities analysis and “margin of safety” on stock picking. His extreme success caused him to choose investing as his career rather than practice medicine. He maintains his medical license in the state of California, including all continuing education requirements. He is most known by his character portrayed in “The Big Short,” an Oscar-winning movie based on the best-selling book by Michael Lewis.

Burry keeps a low profile. He has given a couple of commencement addresses, but since his rise to fame he has not been very public. This changed last September when he began sharing his concerns on the valuations of passive investment products like indexed-funds. Over the past few weeks, his provocative views on how to best manage the COVID-19 outbreak in the U.S. have been getting the attention of his Twitter followers. In addition, he sent an email to Bloomberg discussing flaws he believes exist in the handling of the now crisis level pandemic and economic event.

Source: Twitter account @michaeljburry 

Burry’s Bloomberg
Emails

“Universal stay-at-home is the most devastating economic force in modern history,” Dr. Burry wrote to Bloomberg News. “And it is man-made. It very suddenly reverses the gains of underprivileged groups, kills and creates drug addicts, beats and terrorizes women and children in violent now-jobless households, and more. It breeds deep anguish and suicide.”

In his first email to Bloomberg, he explained that he began speaking up because of how people would suffer from steps taken to contain the pandemic. He described job losses approaching 10 million as “Unconscionable.” Bloomberg News asked for the hedge fund manager to elaborate on his thoughts on the novel coronavirus and the world’s response to the outbreak including short and long-term impacts. Sections of his emailed response are categorized below.

China– “This is a new form of coronavirus that emanated from a country, China, that unfortunately covered it up. That was the original sin. It transmits very easily, and within the first month, it was likely all over the world. Very poor testing infrastructure created an information vacuum as cases ramped, ventilator shortages were projected. Politicians panicked, and media filled the space with their own ignorance and greed. It was a toxic mix that led to the shutdown of the U.S., and hence much of the world economy.”

“In hindsight, each country should have immediately ramped up rapid field testing of at-risk groups. But as I understand it, the CDC was tasked with some of this, and botched it, and other departments were no better. The bureaucracy failed in a good number of countries. Turf wars and incompetence have ruled the day. So the political cover for that failure on the part of the technocrats and politicians is a very harsh stay-at-home policy.”

U.S. Policy Response“If there was ever a time for the government to stimulate with fiscal and monetary policy, it is now. Unfortunately, the U.S. has been adding $3 for every $1 of new GDP over a very long time, and interest rates were already near zero. Still, nothing is more important now that loans to small and mid-sized businesses, and the U.S. Treasury, backed by the Fed, is providing that liquidity, which is vital.”

Treatments “It’s pretty clear that hydroxychloroquine is doing something good for many Covid-19 patients. The standard in medicine is a placebo-controlled double-blind study. But there is no time for that. The technocrats at the top are getting this wrong. Do the studies, make the vaccines, but allow doctors to have what they feel is working now. Don’t take tools or drugs out of the treating doctors’ hands. Trump should use the Defense Production Act more liberally in this area.”

“A more nuanced approach would be for at-risk groups — the obese, old and already-sick — to shelter in place, to execute widespread mandatory testing, and to ID and track as necessary while allowing society to function. Again, Trump should get the massive contract manufacturers like Flextronics to make testing machines.”

Getting Back to Normal“I would lift stay-at-home orders except for known risk groups. We already know certain conditions that are predictive of severe disease. Especially since young, healthy lungs tend to be resistant, I would let the virus circulate in the population that is not likely to get severe disease from it. This is the only path that comes close to balancing the needs of all groups. Vaccines are not coming anytime soon, so natural immunity is the only way out for now. Every day, every week in the current situation is ruining innumerable lives in a criminally unjust manner.”

“When it comes to vaccines, coronaviruses are not known for imparting enduring immunity, and this will be one big challenge. It seems the genetic code is relatively conserved, and this will help the development of the vaccine. But we’re still looking at the end of the year. In the meantime, the world is an innovative place, and I expect many effective treatments — both new and repurposed — shortly. The question then will be regulation, expense, and availability.”

“Medically, the new normal will be the old normal. As long as innovation continues, medicine will conquer everything in our way.”

Economic Recovery “Economically speaking, we have to realize the policy-driven demand shock will be resolved by 2021. But Japan and the U.S. are putting more than 20% of the GDP into new fiscal stimulus, and easy money will be the rule. Those things will all bring stock and debt markets back.”

“Countries will also look to bring supply chains home, and many employees will need retraining with higher cost. When we start working and playing again, inflation may be in store. The other big point is that consumers have learned new behaviors, which will drive business churn.”

Investments He told Bloomberg News in March that he placed a “significant bearish market bet that is working out for now,” without providing details except to say it was a trade of a “good size” against indexes. He said the pandemic could unwind the passive investment boom, which he has compared to purchases of collateralized debt obligations that fueled the pre-2008 mortgage bubble.

Take-Away

Dr. Michael J. Burry is the most famous person to have both predicted the last big economic crisis and make a substantial profit off that call. It’s rare that Burry provides any news outlet with an interview, even an email interview. This makes him worth paying attention to. His Scion Twitter account had been so inactive that as of early March, it only showed 200 followers. That is minuscule for the head of a well-known hedge fund and unheard of considering his fame. Burry does not even have the coveted Twitter blue check-mark.

His feeling that what is going on now with the lockdown and passive-fund investing is a problem, is worth listening to. As an investor, it generally makes sense to pay attention to anything that others are paying attention to, especially people who can influence the market Then, decide if you agree, don’t agree or choose to ignore it.

Here is one Michael Burry Tweet, most readers can agree with.

Suggested Reading:

Have Active
Managers Received a Bum Rap?

Is the Growth
of Index Funds Good or Bad for the Stock Market?

Is Company
Sponsored Research the Future for Small-Cap Stock Investors?

Sources:

GameStop Stock
Surged Because ‘Big Short’ Investor Michael Burry Bought More

The Big Short’s Michael Burry
Explains Why Index Funds Are Like Subprime CDOs

Michael Burry
of ‘The Big Short’ Slams Virus Lockdowns in Tweetstorm

Michael Burry Sticks With Japan Picks Even as Market Drops

Twitter Account
– Dr. Michael Burry

Twitter Account
– michaeljburry

 

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Community:

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cost subscription to company research and premium features

Has the Race for a Treatment Been Won?

Will Gilead, “The Best Antivirals Company,” Find a Remedy for COVID-19

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

“The single biggest threat to man’s
continued dominance on the planet is the virus”,

quote by Nobel Prize winner Joshua
Lederberg

The entire biotechnology industry is rushing to find an effective treatment or vaccine to save the lives of those suffering with severe “Coronavirus Disease of 2019” (Covid-19), and curtail spreading of the global pandemic, which has become the largest global health crisis since the Influenza pandemic of 1918. As of April 17, 2020, there are more than 2,227,678 people infected with SARS-CoV-2 worldwide, and more than 150,625 people have died from the disease. The symptoms of Covid-19 vary among infected patients, from asymptomatic disease to pneumonia, acute respiratory distress syndrome, to multisystem organ failure and death. There is no effective treatment for the disease. Patients currently receive supportive care, and those developing acute respiratory distress receive oxygen mechanical ventilation support, but no specific treatment for the disease is available.

Would Gilead find a solution for those
with severe illness?

In today’s trading session, shares of Gilead Sciences (Nasdaq:GILD) were up 15% earlier, and currently exchange hands around 8% above the opening price. Investors are anticipating a positive outcome from Gilead’s ongoing remdesivir clinical trials. Gilead Sciences, the global leader in antivirals, is repurposing remdesivir for the treatment of patients suffering from Covid-19. The Company is currently conducting various clinical trials on the use of remdesivir for the treatment of Covid-19. On April 10, 2020, Gilead announced results from 53 patients hospitalized with severe complications of Covid-19 infection, who were treated with remdesivir. Gilead’s remdesivir is an experimental broad-spectrum antiviral drug, initially developed for the treatment of infections by Ebola, Marburg, MERS-CoV and SARS-CoV viruses. In in vitro experimental models, Gilead demonstrated that remdesivir is efficacious against SARS-CoV-2. Remdesivir inhibits an enzyme known as RNA polymerase, which is critical for the replication of these viruses, including SARS-CoV-2.

Figure 1 – Structure of the new coronavirus, “Severe Acute Respiratory Coronavirus 2”, SARS-CoV-2, images by transmission electron microscopy. The virus resembles an sphere with spikes. The S-protein or Spike protein is critical for virus entry into human cells.

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Source – Science 2020, 367 (6483)
p1260-1263

Gilead’s candidate drug provided a
potential clinical benefit in 68% of treated patients

Gilead released data from 53 treated patients treated with remdesivir under a compassionate use program in United States, Europe, Canada and Japan. The treatment resulted in a clinical benefit for 68% of the patients. The results were published in the prestigious “New England Journal of Medicine” (N Engl J Med 2020, April 10, DOI: 10.1056/NEJMoa2007016). However, these type of studies, performed under “compassionate use”, have several limitations which hinder any interpretation of the final results. Among the limitations, a key hindrance is the lack of a control patient group, relative small size and relative short duration of patient follow up in these studies. In the Gilead trial, 34 out of the fifty three patients who participated, were on mechanical ventilation at the time of treatment. Four patients were also on “extracorporeal membrane oxygenation” (ECMO). The intended course of treatment (only 75% of patients completed it) was 10 daily doses (200 milligrams on day 1, followed by 100 milligrams of remdesivir
for 9 consecutive days) administered intravenously.

Eighteen days after receiving the first dose of remdesivir, 68 percent of patients (36 out of fifty three patients) showed a clinical improvement (ameliorating oxygen support class), with 17 out of thirty patients (57%) being extubated (released from mechanical ventilation), and 25 out of fifty three patients (47%) being discharge from the hospital. Although not a conclusive study, Gilead is hopeful that ongoing well-controlled clinical trials will prove the effectiveness of remdesivir for the treatment of Covid-19. At present, Gilead is conducting two Phase III clinical trials in the U.S. and Europe, the SIMPLE studies, on the use of the drug in severe (first data readout due this month) and moderate disease (data due in May). The clinical trials on Gilead’s remdesivir which were being conducted in China have been halted (announced on April 15, 2020).

Figure 2. Treatment with remdesivir improved “Oxygen-Support Class”. The data shows number of patients per category and percentage in parenthesis from total of patients treated with the drug. Number of patients who improved (36/53 or 68%) are shown in blue cells, no change (beige), and worsening of oxygen support class (gray). Invasive ventilation includes “mechanical ventilation” and “extracorporeal membrane oxygenation” (ECMO), whereas noninvasive ventilation includes “nasal high-flow oxygen therapy” and “noninvasive positive pressure ventilation” (NIPPV). In the Invasive ventilation class (category 5 at baseline (before treatment)), 19 out of 34 patients or 56% improved after receiving remdesivir.

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Source – N Engl J Med 2020, April 10,
DOI: 10.1056/NEJMoa2007016

The Art of Repositioning Old Drugs for
New Indication, Covid-19

In a recent article published on the “Journal of the American Medical Association” (JAMA), medical scientists from the University of Texas Southwestern Medical Center reviewed recent attempts to repositioning existing drugs for the treatment of Covid-19 patients (JAMA. Published online April 13, 2020. doi:10.1001/jama.2020.6019). According to the authors, there are currently more than 300 clinical trials on the use of candidate drugs for the treatment of Covid-19, the majority of which consisting of repositioning of existing drugs. Promising drug targets include (Figure 3):

  • SARS-CoV-2 nonstructural viral proteins such as “3-chymotrypsin-like protease”, “papain-like protease”, and “RNA-dependent RNA polymerase”. 
  • Viral entry mechanisms
  • Immune regulatory pathways

Besides Gilead’s remdesivir (reviewed above), chloroquine and hydroxychloroquine are two known drugs, which are being repurposed for the treatment of Covid-19 (as the two drugs appear to block viral entry into human cells) (Figure 3). Chloroquine and hydroxychloroquine are known drugs approved for the treatment of malaria (an infectious disease) and two autoimmune diseases (lupus erythematosus and rheumatoid arthritis). In in vitro experimental models, hydroxychloroquine seems to be more potent than chloroquine. Existing data from studies on these two drugs for the treatment of Covid-19 is not conclusive, coupled with the fact of potential cardiotoxicity when used in combination with other medicines, raises concerns about the risk-benefit ratio on potential use. 

The drug combination of lopinavir and ritonavir, known as anti-HIV-1 antiviral drugs, is being reposition for the treatment of Covid-19. Lopinavir/ritonavir inhibit “3-chymotrysin-like protease”, but thus far there is no demonstration of an antiviral effect on SARS-CoV-2. Like Gilead’s remdesivir, favipiravir and ribavirin are inhibitors of RNA polymerase (Figure 3). Favipiravir was developed for the treatment of influenza and Ebola viral infections. Ribavirin, was developed as an inhibitor of RNA polymerase, but in experimental models of SARS-CoV (the virus which caused SARS outbreak of 2002-2003) was only effective at high concentrations. In this drug class, Gilead’s remdesivir is the most promising candidate.

Figure 3 – There are several candidate drugs in clinical trials for the treatment of SARS-CoV-2 infection. Gilead’s remdesivir, an RNA polymerase inhibitor, is the most promising candidate at present. Ribavirin and favipiravir are also candidates in the RNA polymerase inhibitor class. Chloroquine, hydroxychloroquine, camostat mesylate and arbidol are drug candidates which could potentially block viral entry. Lopinavir and darunavir inhibit 3-chymotrypsin-like protease, and tocilizumab/sarilumab inhibit interleukin-6 (IL-6) signaling preventing cytokine storms.

Source – JAMA. Published online
April 13, 2020. doi:10.1001/jama.2020.6019

Arbidol, also known as umifenovir, is a promising repurposed candidate drug for the treatment of Covid-19. Arbidol blocks the binding of SARS-CoV-2 Spike protein to the cellular receptor ACE2, inhibiting membrane fusion of the viral envelope and viral entry (Figure 3). A drug approved in Japan for the treatment of pancreatitis (inflammation of the pancreas) is being repurposed for the treatment of Covid-19. The drug, known as camostat mesylate might block viral entry by inhibition of TMPRSS2, a serine protease enzyme. Historically, repurposing an existing drug for a different indication has not always been successful. Given the large number of ongoing clinical trials, we will find out over the next few months if any or several of these candidate drugs will be effective for the treatment of Covid-19.

Natural Evolution of a Pandemic, What
could happen next with Covid-19 pandemic?

As the biotechnology/pharmaceutical industry collaborates with medical academic institutions in the search for a treatment/vaccine or cure for Covid-19, it is difficult to predict the evolution of the current pandemic and virus behavior in coming weeks, months. As the world waits for the outcome of ongoing clinical trials evaluating potential treatments for Covid-19, it is important keeping aware of what medical science has taught us from previous epidemics such as SARS in 2002, middle east respiratory outbreak (MERS) in 2012 and Spanish flu (1918). Despite of the relatively short history of Covid-19, which started in China in December 2019, knowledge of the biology of the new coronavirus, SARSCoV-2, have grown very quickly.

At present, experts ponder on the probability that nature might help mankind by slowing down the virus spread. Among many potential mechanisms and strategies, there are three primary events which could curtail viral spreading:

  • Natural Mutations of SARS-CoV-2
  • Increasing Population Immunity
  • Potential anti-viral treatments and Vaccines

The development of a drug treatment and/or effective vaccine will be a medical breakthrough which could save many lives worldwide. However, most experts believe testing of these candidate therapies will take time. As the SARS-CoV-2 virus continues to infect people across the globe, the number of patients with partial immunity could rise, which could eventually curtail viral spreading. However, the virus will probably has to infect many people worldwide before population immunity changes.

Could a Mutation Reduce SARS-CoV-2
virulence?

The answer to this very important question is not that simple. Experts opinions are divided on this subject. According to Dr. Michael Farzan, a biologist from the Scripps Research Institute in Jupiter, Florida, who identified the structure of the Spike protein of SARS-CoV (Science 2005, 309(5742) p1864-8), SARS-CoV-2 will probably mutate to lose rather than gain virulence. There is the possibility that SARS-CoV-2 could become a seasonal endemic virus such as the influenza virus. Some scientists, including Dr. Farzan, believe the natural evolution of a virus selects for less virulent variants as they will transmit more efficiently. Their belief is that very sick patients are not very good at transmitting the disease, and dead people cannot do it at all. Thus a virus which kills quickly does not transmit infection very efficiently, and does not get naturally selected. In contrast, less virulent viruses transmit very well, as less sick patients act as a very efficient source of infection. In colloquial terms, “the virus wants to live, last longer in the infected population”.

Origin of SARS-CoV-2, Critical Mutations,
Virus Chimera
– It is hypothesized that SARS-CoV-2 evolved through a mutation in the Spike protein allowing the virus to jump from bats to humans causing a zoonotic infection known as Covid-19. The Spike (S) protein of SARS-CoV-2 contains a “variable receptor-binding domain” (RBD), which binds to ACE-2 receptor in human cells facilitating viral cell entry. Using genomic DNA sequencing, scientists have identified a related virus, RaTG13, from bats (http://virological.org/t.the-proximal-origin-of-sars-cov-2/398). The hypothesis is that SARS-CoV-2 originated from bats, mutated, becoming able to infect human cells. A critical mutation of the virus allows human proteases to cut and activate the Spike protein of the virus, which facilitates viral entry and infection of human cells. A more recent hypothesis claims SARS-CoV-2 is a human creation. Experimental work at a laboratory in Wuhan, China, the site where the pandemic started, did extensive work on bat coronavirus. Although there is no proof of it yet, it has been proposed that SARS-CoV-2 is a chimeric virus resulting from experiments performed at Wuhan’s laboratory.

Mutations Might Decrease Virulence – Some experts believe that in the same fashion the virus experienced a gain of function mutation, allowing cut and activation of Spike protein, increasing virulence, SARS-CoV-2 could also incur mutations causing a decrease in virulence. This was the case for the Spanish flu influenza virus, and for the coronavirus SARS-CoV which caused severe acute respiratory syndrome (SARS) in 2002 (Scientific Reports 2018, volume 8, article number: 15177). Mutated viruses became less virulent, viral spreading stopped, and the epidemics were halted as the viruses fizzle out. In theory, this could happen again with the virus causing Covid-19. Although infection with SARS-CoV-2 has shown a lower fatality rate than SARS-CoV, the new coronavirus SARS-CoV-2 is significantly more contagious. Differences aside, it is theoretically possible that the evolution of the current SARS-CoV-2 pandemic might end up in the same fashion as the SARS epidemic of 2002. In 2018, Dr. Christian Drosten, currently at German Center for Infectious Research in Berlin, published scientific work demonstrating that a variant of SARS-CoV lost part of its genome (29 nucleotides) during the SARS outbreak of 2002-2003, which made the SARS-CoV virus less virulent. The authors demonstrated this hypothesis by testing the SARS-CoV variant in cellular models in the laboratory (Scientific Reports 2018, volume 8, article number: 15177).

Monitoring SARS-CoV-2 Evolution

Monitoring the evolution of SARS-CoV-2 for mutations which could increase or decrease virulence is important (Pathogens 2020, 9, 186; doi:10.3390/pathogens9030186). Mutations in the gene encoding the Spike (S) protein do affect the virulence of SARS-CoV (New England Journal
of Medicine
2003, 348 (20) p1948-1951). A very important statistic to monitor during the SARS-CoV-2 pandemic will be the “Basic Reproduction Number”, or “R0”, which measures the average number of people who will catch the disease from one infected person in a population who has never before being exposed to the disease (Emerg Infect Dis 2019, 25, 1-4). Thus far, the R0 for SARS-CoV-2 is estimated between 2 to 3 (Int J Infect Dis 2020, 92, p214-217; New England Journal of Medicine 2020, doi:10.1056/NEJMoa2001316;
Lancet 2020, doi:10.1016/S0140-6736(20)30260-9), which is relatively high. The goal is to reduce R0 to a number below 1.

Racing to Develop a Vaccine

Moderna (Nasdaq:MRNA) yesterday announced that the U.S. federal government has agreed to give the Company $483 million from “Biomedical Advanced Research and Development Authority” (BARDA) to accelerate development of mRNA-1273 vaccine for Covid-19. On April 15, 2020, Moderna (Nasdaq:MRNA) announced that it has started dosing Covid-19 patients with the highest dose of its candidate vaccine. Moderna, in collaboration with the National Institute of Allergy and Infectious Diseases (NIH, NIAID), is developing mRNA-1273, a candidate vaccine targeting SARS-CoV-2. mRNA-1273 is designed to target the Spike (S) protein of the virus. mRNA vaccines function by encoding proteins, which once made by the cell stimulate the immune system to destroy infected cells. Development of mRNA vaccines is much faster than with traditional vaccines. mRNA-1273 encodes the “prefusion-stabilized” (Science 2020, 367 (6483) p1260-1263, DOI:10.1126/science.abb2507) form of Spike (S) protein of SARS-CoV-2. The candidate vaccine is currently in Phase I human clinical trials, which means it will take months before the effectiveness of this vaccine is known. Repurposing of existing anti-viral medicines is not an ideal strategy, but it could be a short term solution before an effective vaccine becomes available. For a full review of the pipeline of candidate medicines being developed by the biotechnology/pharmaceutical industry for SARS-CoV-2, see the journal Nature
Biotechnology
published on March 20, 2020.


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Research sierra metals smts rising to the challenge

Thursday, April 16, 2020

Sierra Metals (SMTS)

Rising to the Challenge

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    SMTS reports first quarter production results. Compared with the prior year period, first quarter production of copper, zinc and lead increased 52.3%, 31.8% and 30.5% to 11.8 million pounds, 21.6 million pounds and 9.1 million pounds, respectively. Gold production increased 84.1% to 3,657 ounces, while silver production increased 37.2% to 948 thousand ounces. The increases were driven by greater throughput as a result of capacity expansions and higher grades of ore.

    Updating estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.12 and $81.5 million from $0.21 and $109.5 million, respectively. Additionally, we have lowered our 2021 EPS and EBITDA to $0.24 and $122.6 million from $0.28 and $137.7 million, respectively. By comparison, 2019 Adj. EBITDA amounted to $65.3 million. Our revised 2020 estimates reflect lower production due to second quarter 2020 government-mandated work restrictions, lower base metals prices, and modestly lower production from Cusi for the balance of 2020. Our 2021 revisions are largely related to…


    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

PDS Biotechnology Initiates Novel Vaccine Development Programs For COVID-19 and Universal Influenza; Delay of PDS0101 VERSATILE-002 trial

PDS Biotechnology Initiates Novel Vaccine Development Programs For COVID-19 and Universal Influenza; Delay of PDS0101 VERSATILE-002 trial

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

Expanded infectious disease program to address current and potential pandemics builds on existing tuberculosis collaboration

Initiation of Phase 2 VERSATILE-002 trial for PDS0101 in advanced/metastatic head and neck cancer delayed due to global COVID-19 pandemic

PRINCETON, N.J., April 16, 2020 (GLOBE NEWSWIRE) — PDS Biotechnology Corporation (PDSB), a clinical-stage immunotherapy company developing novel cancer therapies and infectious disease vaccines based on the Company’s proprietary Versamune® T-cell activating technology, today announced an expanded infectious disease pandemic development program, including novel vaccines for COVID-19 and universal influenza, in addition to its previously announced tuberculosis development collaboration with Farmacore Biotechnology. The Company also announced that initiation of its multi-center Phase 2 VERSATILE-002 trial for PDS0101 in advanced/metastatic head and neck cancer has been delayed due to the severe adverse impact on clinical trial operations from the COVID-19 pandemic.

PDS Biotech’s products combine its novel Versamune® technology with custom-designed, disease-specific proteins to induce both neutralizing antibody and killer (CD8+) T-cell responses, which when co-induced are more powerful in fighting disease than either alone.  This proven Versamune® mechanism, combined with a favorable safety profile, provides a strong rationale to expand the development of Versamune®-based products beyond its initial series of cancer immunotherapies to add potentially transformative vaccines to protect and fight against infectious agents, including COVID-19, influenza, and tuberculosis.

In the Company’s previously reported Phase I clinical study of PDS0101 (NCT02065973), Versamune® was confirmed to be safe and to uniquely facilitate the induction of strong antigen-specific CD8+ and CD4+ T-cells in vivo, including memory T-cell responses against the HPV viral target, leading to regression of disease.

“The potency and versatility of the proprietary Versamune® T-cell activating platform makes it possible for PDS Biotech to immediately start development of novel vaccines to protect against infectious disease agents with pandemic potential, starting with COVID-19 and influenza,” commented Dr. Frank Bedu-Addo, CEO of PDS Biotech. “Preventive vaccines to date have focused on induction of neutralizing antibodies. However, both neutralizing antibodies and killer (CD8+) T-cells have now been confirmed to be important in addressing pathogen-induced diseases such as COVID-19, influenza and tuberculosis. We believe that there is a clear opportunity to leverage our Versamune® platform to develop more effective vaccines that have the potential to safely generate a broader range of immune responses, including antibodies, killer T-cells, and memory T-cells, to prevent and to provide long-term protection against the spread of pandemic agents.”

“While we are adding these new programs, we remain committed to our immuno-oncology programs, including two upcoming single-site Phase 2 studies – one with the NCI to evaluate PDS0101 in combination with two promising immuno-modulating agents in advanced HPV-associated cancers, and another to evaluate the combination of PDS0101 and chemoradiation in patients with locally advanced cervical cancer.  We will continue to closely monitor the impact of COVID-19 on these trials and on oncology clinical trial operations in the US, and will seek to initiate our Phase 2 head and neck cancer trial in the near future if possible,” Dr. Bedu-Addo concluded.

Dr. Lauren Wood, Chief Medical Officer of PDS Biotech added, “Versamune® has demonstrated a superior ability to present viral antigens to our immune system, while simultaneously activating critical immunological pathways that enable the immune system to more effectively respond to and protect against disease. The engineered simplicity, ease of administration, and scalability of Versamune® also enhances the potential of Versamune®-based products to better mitigate the devastating impact of emerging pathogens such as coronaviruses on human health. As we seek to advance our expanded infectious disease development effort, we look forward to discussions with relevant government and non-governmental organizations to determine the most expeditious path forward into human testing.”

About PDS Biotechnology

PDS Biotech is a clinical-stage immunotherapy company with a growing pipeline of cancer immunotherapies and infectious disease vaccines based on the Company’s proprietary Versamune® T-cell activating technology platform. Versamune® effectively delivers disease-specific antigens for in vivo uptake and processing, while also activating the critical type 1 interferon immunological pathway, resulting in production of potent disease-specific killer T-cells as well as neutralizing antibodies. PDS Biotech has engineered multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize disease cells and effectively attack and destroy them. To learn more, please visit www.pdsbiotech.com or follow us on Twitter at @PDSBiotech.

Forward Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the “Company”) and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation:; the Company’s ability to protect its intellectual property rights; potential adverse reactions or changes to business relationships resulting from the resignation of the Company’s Chief Financial Officer or the Company’s ability to find a replacement Chief Financial Officerthe Company’s anticipated capital requirements, including the Company’s anticipated cash runway and the Company’s current expectations regarding its plans for future equity financings; the timing for the Company or its partners to initiate the planned clinical trials for its lead assets, PDS0101 and PDS0102; the Company’s interpretation of the results of its Phase 1 trial for PDS0101 and whether such results are sufficient to support additional trials or the future success of such trials; the successful implementation of the Company’s research and development programs and collaborations, including any collaboration studies concerning PDS0101 and the Company’s interpretation of the results and findings of such programs and collaborations and whether such results are sufficient to support the future success of the Company’s product candidates; the acceptance by the market of the Company’s product candidates, if approved; the timing of and the Company’s ability to obtain and maintain U.S. Food and Drug Administration or other regulatory authority approval of, or other action with respect to, the Company’s product candidates; and other factors, including legislative, regulatory, political and economic developments not within the Company’s control, including unforeseen circumstances or other disruptions to normal business operations arising from or related to COVID-19. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s annual and periodic reports filed with the SEC. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Media & Investor Relations Contact:

Deanne Randolph
PDS Biotech
Phone: +1 (908) 517-3613
Email: drandolph@pdsbiotech.com

Tram Bui / Alexander Lobo
The Ruth Group
Phone: +1 (646) 536-7035 / +1 (646) 536-7037
Email: tbui@theruthgroup.com / alobo@theruthgroup.com

Research – Kelly Services Inc. (KELYA) – Withdraws Guidance; Moving to Market Perform

Thursday, April 16, 2020

Kelly Services Inc. (KELYA)

Withdraws Guidance; Moving to Market Perform

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Withdraws Guidance. Yesterday, Kelly responded to the COVID-19 crisis with a series of proactive steps, including reduced compensation, temporary furloughs, reduction of discretionary expenses, a suspension of the $3 million quarterly dividend, a draw-down from Kelly’s credit facility, and a withdrawal of full-year guidance.

    Devil will be in the Details. While Kelly provided detail of the actions it is taking, details on the cost of such actions, potential cost savings, and the size of the draw-down were not provided. We expect management to provide a more in-depth picture on the May 4th first quarter earnings call not only on the actions taken but the…


    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Ceapro Inc. Reports Fourth Quarter and Full Year 2019 Results and Highlights

Ceapro Inc. Reports Fourth Quarter and Full Year 2019 Results and Highlights

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

2019 marked by Company’s progression as a development-stage biopharmaceutical company dedicated to innovation

EDMONTON, Alberta, April 16, 2020 (GLOBE NEWSWIRE) — Ceapro Inc. (TSX-V: CZO, OTCQX: CRPOF) (“Ceapro” or the “Company”), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced operational highlights and financial results for the fourth quarter and full year ended December 31, 2019.

“Over the course of 2019, in addition to having delivered another solid year with our base business serving the cosmeceutical sector, Ceapro took the strategic steps to maintain our vision to transition to a new business model from a contract manufacturer to a biopharmaceutical company offering innovative products and delivery systems to the nutraceutical and biopharmaceuticals sectors. To achieve this vision, our team continues to work diligently to utilize our proprietary technologies and innovate new formulations. As part of new product development, we are developing formulations that potentially allow delivery of bioactives through different modes of administration, including oral, topical, sub-lingual, and intranasally,” stated Gilles Gagnon, M.Sc., MBA, President and CEO, of Ceapro. “We are advancing the development of these topical/transdermal delivery systems using our proprietary new chemical complexes developed leveraging our PGX technology and will also implement some of them in our existing line of Juvente cosmeceutical products.”

2019 Corporate and Operational Highlights:

Pipeline Development:

  • Demonstrated and presented the versality of PGX technology to simultaneously dry, purify, micronize and functionalize proteins, peptides, and polysaccharides to generate highly potent and sought-after bioactive delivery systems. Used the PGX technology to make fibrous structure that were successfully tested in wound healing applications. Developed at the pilot scale PGX processed materials for assessment by potential commercial partners.
  • Presented positive results for avenanthramides at the 2019 American College of Sports Medicine Annual Meeting on May 31, 2019 in Orlando, FL. Results from bio-efficacy study with avenanthramides in exercise induced inflammation support anti-inflammatory claim for avenanthramides as a food supplement.
  • Pursued enrollment and randomization of patients for the pilot clinical trial evaluating beta glucan as a potential cholesterol reducer. 
     
  • Continued to monitor stability studies for liquid beta glucan and avenanthramides produced at the new manufacturing site as well as for the pharmaceutical-grade dry powder formulation of avenanthramides to be used in a human bioavailability study.
  • Presented positive key findings from PGX technology at two international scientific conferences: the Iberoamerican Conference on Supercritical Fluids held in Brazil from September 2-6, 2019, and the Symposium on Pharmaceutical Engineering Research (SPhERe) held in Germany from September 25-27, 2019.
  • Announced positive key findings from three oral presentations given at European Meeting on Supercritical Fluids held in Spain from April 12-14, 2019.

Technology:

  • Received patent issuance, with protection until March 2030, in Europe and the U.S. for a technology to increase concentration of avenanthramides in oats.
  • Advanced research and development efforts to pursue the development of new PGX-dried chemical complexes for potential applications under various forms like pills, capsules, fast dissolving strips and face masks.
  • Granted patent for PGX technology in India, which represents a very large potential market with numerous contract manufacturers in the pharmaceutical industry that Ceapro believes could benefit from our PGX technology.
  • Performed technical upgrades of PGX Demo plant.
  • Conducted a technical assessment of available equipment in Europe and North America and evaluating locations for a future commercial scale-up of the PGX technology. PGX strategy to be unveiled by mid-year 2020.
  • Advanced research collaboration projects with the University of Alberta and McMaster University for the impregnation of various bioactives using PGX-processed dry beta glucan, gum arabic and alginate as potential delivery systems for multiple applications in healthcare.
  • Advanced conversations with interested potential partners to out-license applications developed using Ceapro’s innovative technology.
  • Launched several new formulations for the Juvente line of finished cosmeceutical products.

Bioprocessing Operations:

  • Successfully passed audits with additional key major customers for the Edmonton based manufacturing facility which complies with international quality systems regulations.

Corporate:

  • Announced financial contribution agreement with National Research Council of Canada.
  • Received a research funding award from Canadian Institutes for Health Research (CIHR) in partnership with the Natural Sciences and Engineering Research Council of Canada (NSERC) to Ceapro Inc. and McMaster University for development of drug delivery systems using PGX technology.
  • Announced the listing of Ceapro’s shares for trading on the OTCQX® Best Market, a U.S. market, under the ticker OTCQX: CRPOF. Shares are DTC eligible fast coded.
  • Participated in trade missions showcasing Ceapro’s products and technologies in France, Germany and Spain.

Subsequent to Year End:

  • Received approval from Health Canada to amend human clinical study protocol assessing beta glucan as a cholesterol-lowering single agent or as add-on therapy to statins. Approvals for this modification received from Ethics committees of all research centers (11) involved in this pan Canadian study. This is Ceapro’s first clinical trial with a proprietary, pharmaceutical grade product.
  • Received approval from Health Canada Controlled Substances and Cannabis Branch for a research license with medical cannabis for the formulation of unique solid cannabinoid delivery systems using PGX technology.

“Moving forward, we are deploying strategic efforts to expand and optimize our sales through our distribution network and mostly through direct marketing and sales activities. We also remain very active in business development activities for out-licensing selective Ceapro products and continue to advance conversations with potential partners,” commented Mr. Gagnon. “Additionally, we’d like to note that amidst the COVID-19 health pandemic, the Company’s business has not been impacted to date and we have worked hard to mitigate any potential supply chain disruptions to ensure we can reliably continue to offer our high-quality products throughout the pandemic and even beyond. The safety and health of our employees is a top priority and as such, we have instituted additional preventive measures to ensure the highest level of safety while maintaining our operations. We are incredibly grateful to our dedicated employees who are working tirelessly.”

Financial Highlights for the Fourth Quarter and the Full Year 2019 Ended December 31, 2019

  • Total sales of $3,721,000 for the fourth quarter of 2019 and $12,880,000 for the full year of 2019 compared to $4,467,000 and $11,593,000 for the comparative periods in 2018. The 11% increase of sales for the full year 2019 results from an 86% increase of beta glucan (mostly made to China) partially offset by an 8% decrease in avenanthramides. For the fourth quarter 2019, sales of beta glucan increased by 242% while avenanthramides sales decreased by 34% as compared to Q4, 2018 which was the highest quarter in Ceapro’s history.
  • Net profit of $166,000 for the fourth quarter of 2019 and a net loss of $1,133,000 for the full year of 2019 compared to a net profit of $444,000 and a net loss of $316,000 for the comparative periods in 2018. Excluding non-cash items like depreciation ($1,830,000 in 2019 vs $579,000 in 2018), net adjusted operating results show a profit of $1,113,600 in 2019 vs a loss of $6,600 in 2018.
  • Cash generated from operations of $882,000 for the full year 2019 vs cash used in operations of $2,100,000 for the full year 2018; an improvement of $3,000,000 in 2019.
  • Positive working capital balance of $4,670,000 as of December 31, 2019.

“In conclusion, I strongly believe 2020 holds a lot of opportunity for Ceapro. Based on a very solid foundation, a highly competent team, a healthy balance sheet and a very strong technology and product portfolio with the potential to access key large markets, I believe we have all the key components for success,” concluded Mr. Gagnon.

CEAPRO INC. 
Consolidated Balance Sheets
 
  December 31,   December 31,  
  2019   2018  
  $   $  
         
ASSETS        
Current Assets        
Cash and cash equivalents 1,857,195   1,844,134  
Trade receivables 3,659,541   3,015,344  
Other receivables 46,812   46,899  
Inventories (note 4) 669,005   710,708  
Prepaid expenses and deposits 178,908   518,219  
         
  6,411,461   6,135,304  
Non-Current Assets        
Investment tax credits receivable 607,700   607,700  
Deposits 85,755   88,340  
Licences (note 5) 21,477   24,440  
Property and equipment (note 6) 19,764,122   17,947,967  
Deferred tax assets (note 17 (b)) 378,643   520,872  
         
  20,857,697   19,189,319  
         
TOTAL ASSETS 27,269,158   25,324,623  
         
LIABILITIES AND EQUITY        
Current Liabilities        
Accounts payable and accrued liabilities 1,291,204   949,878  
Current portion of long-term debt (note 9) 111,865   336,956  
Current portion of lease liabilities (note 10) 265,123    
Current portion of CAAP loan (note 12) 72,942   72,942  
         
  1,741,134   1,359,776  
Non-Current Liabilities        
Long-term debt (note 9)   110,350  
Long-term lease liabilities (note 10) 2,775,627    
CAAP loan (note 12) 61,580   115,216  
Deferred tax liabilities (note 17 (b)) 378,643   524,280  
         
  3,215,850   749,846  
         
TOTAL LIABILITIES 4,956,984   2,109,622  
         
Equity        
Share capital (note 11 (b)) 16,401,677   16,320,522  
Contributed surplus (note 11 (e)) 4,650,090   4,501,444  
Retained earnings 1,260,407   2,393,035  
         
  22,312,174   23,215,001  
         
TOTAL LIABILITIES AND EQUITY 27,269,158   25,324,623  
         
CEAPRO INC. 
Consolidated Statements of Net Loss and Comprehensive Loss
 
 
  2019   2018  
Year Ended December 31,  $    $  
     
Revenue (note 19) 12,880,006   11,592,666  
Cost of goods sold 7,434,654   5,454,468  
     
Gross margin 5,445,352   6,138,198  
     
Research and product development 2,393,607   2,665,838  
General and administration 2,952,488   3,000,005  
Sales and marketing 425,230   225,549  
Finance costs (note 15) 260,684   118,728  
     
(Loss) income from operations (586,657 ) 128,078  
     
Other expenses (note 14) (549,379 ) (1,123,061 )
Impairment of intangible assets (note 7)   (430,533 )
Impairment of goodwill (note 8)   (218,606 )
Gain on settlement of royalty provisions (note 18 (c))   722,895  
     
Loss before tax (1,136,036 ) (921,227 )
     
Income taxes    
Current tax recovery   4,263  
Deferred tax benefit 3,408   601,427  
     
Income tax benefit (note 17 (a)) 3,408   605,690  
     
Total comprehensive loss for the year (1,132,628 ) (315,537 )
     
Net loss per common share (note 24):    
Basic (0.01 ) (0.00 )
Diluted (0.01 ) (0.00 )
     
Weighted average number of common shares outstanding (note 24):    
Basic 77,188,505   76,201,191  
Diluted 77,188,505   76,201,191  
     
CEAPRO INC.    
Consolidated Statements of Cash Flows    
     
     
  2019   2018  
Year Ended December 31,  $    $  
OPERATING ACTIVITIES    
Net loss for the year adjusted for non-cash and working capital items (1,132,628 ) (315,537 )
Adjustments for items not involving cash    
Finance costs 171,249   10,370  
Transaction costs 4,187   15,682  
Depreciation and amortization 1,831,744   578,603  
Foreign exchange (gain) loss on long-term debt (307 ) 5,211  
Accretion 30,248   37,676  
Deferred tax benefit (3,408 ) (601,427 )
Share-based payments 212,517   336,589  
Impairment of intangible assets   430,533  
Impairment of goodwill   218,606  
Gain on settlement of royalty provisions   (722,895 )
Net loss for the year adjusted for non-cash items 1,113,602   (6,589 )
CHANGES IN NON-CASH WORKING CAPITAL ITEMS    
Trade receivables (644,197 ) (1,768,931 )
Other receivables 87   166,613  
Inventories 41,703   374,680  
Prepaid expenses and deposits 154,106   (163,940 )
Royalty provisions   (780,741 )
Accounts payable and accrued liabilities relating to operating activities 388,064   97,345  
Total changes in non-cash working capital items (60,237 ) (2,074,974 )
Net loss for the year adjusted for non-cash and working capital items 1,053,365   (2,081,563 )
Interest paid (171,249 ) (40,567 )
CASH GENERATED FROM (USED IN) OPERATIONS 882,116   (2,122,130 )
INVESTING ACTIVITIES    
Purchase of property and equipment (332,186 ) (1,092,744 )
Purchase of leasehold improvements (6,007 ) (85,148 )
Deposits relating to investment in equipment 187,790   (77,203 )
Accounts payable and accrued liabilities relating to investing activities (46,738 ) (127,093 )
CASH USED IN INVESTING ACTIVITIES (197,141 ) (1,382,188 )
FINANCING ACTIVITIES    
Stock options exercised 17,284    
Repayment of long-term debt (339,321 ) (865,080 )
Repayment of CAAP loan (83,884 ) (83,884 )
Repayment of lease liabilities (265,993 )  
Grant used for purchase of leaseholds, property and equipment   123,521  
CASH USED IN FINANCING ACTIVITIES (671,914 ) (825,443 )
Increase (decrease) in cash and cash equivalents 13,061   (4,329,761 )
     
Cash and cash equivalents at beginning of the year 1,844,134   6,173,895  
     
Cash and cash equivalents at end of the year 1,857,195   1,844,134  
     

The complete financial statements are available for review on SEDAR at https://sedar.com/Ceapro and on the Company’s website at www.ceapro.com.

About Ceapro Inc.

Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and “active ingredients” from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company’s website at www.ceapro.com.

For more information contact:

Jenene Thomas
JTC Team, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: czo@jtcir.com

Issuer:
Gilles R. Gagnon, M.Sc., MBA
President & CEO
T: 780-421-4555

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Research – Sierra Metals (SMTS) – Rising to the Challenge

Thursday, April 16, 2020

Sierra Metals (SMTS)

Rising to the Challenge

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    SMTS reports first quarter production results. Compared with the prior year period, first quarter production of copper, zinc and lead increased 52.3%, 31.8% and 30.5% to 11.8 million pounds, 21.6 million pounds and 9.1 million pounds, respectively. Gold production increased 84.1% to 3,657 ounces, while silver production increased 37.2% to 948 thousand ounces. The increases were driven by greater throughput as a result of capacity expansions and higher grades of ore.

    Updating estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.12 and $81.5 million from $0.21 and $109.5 million, respectively. Additionally, we have lowered our 2021 EPS and EBITDA to $0.24 and $122.6 million from $0.28 and $137.7 million, respectively. By comparison, 2019 Adj. EBITDA amounted to $65.3 million. Our revised 2020 estimates reflect lower production due to second quarter 2020 government-mandated work restrictions, lower base metals prices, and modestly lower production from Cusi for the balance of 2020. Our 2021 revisions are largely related to…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Stock Index Adjustments and Self-Directed Investors

There’s Opportunity When Stock Market Indices are Reshuffled

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

After the close of regular trading on Monday, April 13, it was announced by S&P Dow Jones Indices that they would be moving LHC Group (LHCG) out from the SmallCap 600 index and into the MidCap 400 index. The release also informed that they would fill the open spot in the S&P 600 with YETI Holdings (YETI).

It’s not uncommon for an index to change and adjust the underlying measures by listing or delisting companies used as a component. It’s something they often must do.  Listed corporations merge or are acquired, companies like LHC grow out of their market cap definition, and industries may gain or lose relevance as technologies change. One major index that does a thorough scheduled rebalance is the Russell 2000.

As you might expect, being listed or delisted causes out-of-the-ordinary price action around the stocks that are moved in or out of an index. The first rule of investing is; only where there is movement is there opportunity. Being listed or delisted causes price movement. As with most trading and positioning, if it were a sure thing, everyone would be doing it. Let’s look at some history.

Typical Activity for Newly Listed

The announcement of YETI being added let investors know that the companies price action will be represented in the S&P 600 as of the market open on Friday, April 17. The graph below shows the price and volume activity since the announcement (note that major market indices were also up 3-4%). The companies price rose while volume spiked the day after the unscheduled surprise announcement.

The reason a company becomes more active and sought after when it’s included in an index is simple. With the popularity of index funds and indexed ETFs, whenever a company is added, the mutual funds that are looking to mirror the index will act to develop a position with a similar weighting near the date of the change. And an ETF is required to own the index they represent, ETF administrators have no choice but to hold the stock, based on their prospectus.  Conversely, when a stock is dropped from an index demand may fade as interest by the index fund managers disappears.

A close up of a map

Description automatically generated

This is one example of what price activity often looks like after a new listing announcement and before the inclusion date. Price often improves and trading volume is typically much higher than average. The index will begin measuring YETI Friday, April 17; it will be interesting to see how it performs on that day and over the coming weeks relative to the market.

 Activity Immediately After Listing

In late June 2019, FTSE Russell reconstituted its indices, including the Russell 2000. Presented below is a table of all 12 Biotech firms added. The table lists the price at close (two hours before the announcement,) the percent increase/decrease as-of the open on the date included in the index, and lastly, the percent change for there three days after it was inserted into the index.

Included at the top of the table is the percent change of the Russell 2000 (RUT) during this period. On the very right side two columns of the table the RUT change is netted out of each companies’ price movement. This allows you to view movement from the baseline of where the market was on that day.

On Friday, June
28, 2019, twelve stocks were added to the FTSE Russell 2000 and/or Russell 3000
indices. As with most reconstitutions, the shares of the companies did show
inordinate activity and movement
.
Affimed N.V., Axsome
Therapeutics
, Eyepoint
Pharmaceuticals
, Apyx
Medical
, Organogenesis, Strongbridge
Biopharma
,
Zynerba Pharmaceuticals
, Misonix
Inc.
, Urogen
Pharma
, PhaseBio
Pharmaceuticals
, BioXcel
Therapeutics
, V
B Industries
.

Analysis

The price from announcement date to open on inclusion date was up on 9 of the 12 included stocks. The increase in price beat the index in 8 of the 12. The average of all 12 increased by 2.26% as compared to the RUT, which only increased by 1.78%.

Three days after inclusion in the index, 11 of the 12 stocks beat the index, with only one showing a negative return. The average return for the 12 companies over the three days was 5.73% (RUT gained 1.19%).

Opportunity

These examples demonstrate that finding plays as indexes reshuffle their underlying stocks is possible. In fact, if price increases before inclusion date are the norm, this could actually have the effect of the index listing the company at a higher than average or inflated price. This would weigh down the index performance and give the advantage to the investor seeking individual opportunity outside index investing.

In June, FTSE Russell will once again be adjusting the underlying listed securities. It’s always smart to watch the activity surrounding this, even if you’re uninvolved. A link to the schedule is below under “Sources.”

 

Suggested Reading:

Do
Market Scares Provide Uncommon Opportunity?

Taking
The FDA Shortcut

Additional
Balance in the 60/40 Asset Mix

 

Channelchek Community:

Unlimited,
no cost subscription to company research and premium features

 

Sources:

FTSE Russell 2020 Reconstitution Calendar

YETI Holdings to
Join S&P SmallCap 600

New
Additions to Russell Indexes

Research kelly services inc- kelya withdraws guidance moving to market perform

Thursday, April 16, 2020

Kelly Services Inc. (KELYA)

Withdraws Guidance; Moving to Market Perform

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Withdraws Guidance. Yesterday, Kelly responded to the COVID-19 crisis with a series of proactive steps, including reduced compensation, temporary furloughs, reduction of discretionary expenses, a suspension of the $3 million quarterly dividend, a draw-down from Kelly’s credit facility, and a withdrawal of full-year guidance.

    Devil will be in the Details. While Kelly provided detail of the actions it is taking, details on the cost of such actions, potential cost savings, and the size of the draw-down were not provided. We expect management to provide a more in-depth picture on the May 4th first quarter earnings call not only on the actions taken but the…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research endeavour silver corp exk lowering 2020 estimates to reflect second quarter suspension of operations in mexico

Wednesday, April 15, 2020

Endeavour Silver Corp (EXK)

Lowering 2020 Estimates to Reflect Second Quarter Suspension of Operations in Mexico

Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    First quarter production results are a mixed bag. Compared to the prior year period, first quarter silver and gold production declined 19.9% and 15.7% to 857,659 ounces and 8,476 ounces, respectively. The decline was due to the suspension of mining at the El Cubo mine on November 30, 2019 and lower production at both Bolanitos and El Compas. Guanacevi production results outperformed our expectations, while Bolanitos and El Compas underperformed. Silver production exceeded our estimates, while gold production was below our estimate. Compared to the fourth quarter of 2019, first quarter silver and gold production declined 8.7% and 11.5%, respectively.

    Updating estimates. We forecast a 2020 loss of ($0.06) per share and EBITDA of $22.5 million compared to our prior estimates of $0.01 and $34.1 million. Our revised estimates reflect, in part, lower production in the second quarter due to the suspension of mine activities in Mexico from April 1 through April 30 due to government-mandated work restrictions to curb COV-19 infections. We forecast 2021 EPS and EBITDA of $0.07 and $44.9 million, respectively. Our 2021 estimates reflect continued improvement in mine throughput and grades and the benefit of higher average gold and…


    Click here to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research – Comtech Telecommunications Corp. (CMTL) – Early Signs of Business Returning?

Wednesday, April 15, 2020

Comtech Telecommunications Corp. (CMTL)

Early Signs of Business Returning?

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Business Returning? While we believe it is too early to call a bottom, since April 6th, Comtech has issued a series of press releases highlighting new business wins. In the tidal wave of negative news coming out daily, we wanted to highlight that Comtech continues to operate even under these challenging conditions.

    BFT-1 Sustainment Support. The contract that keeps on giving provides an additional $6.5 million to Comtech for the period 4/15/20-4/14/21 with an additional 12 month option period added on to the contract. We are still hopeful Comtech will get a seat at the table if the Army moves forward with a BFT-3 type project. Comtech also received…



    Click here to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.