Research – electroCore (ECOR) – Q4 2019 Results: Lagged Commercial Success

Wednesday, March 25, 2020

electroCore (ECOR)

Q4 2019 Results: Lagged Commercial Success

electrocore Inc is a commercial-stage bioelectronic medicine company with a platform for non-invasive vagus nerve stimulation therapy initially focused on neurology and rheumatology. Its product gammaCore is FDA-cleared for the acute treatment of pain associated with migraine and episodic cluster headache in adults.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

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

    Fourth quarter 2019 financial results. The company focuses on two channels to commercialize gammaCore: i) the Federal Supply Schedule eligible entities and ii) the United Kingdom’s National Health Service. The net sales in Q4 were $675,000 compared to $683,000 in Q3 2019. There was a 24% sequential growth in paid months of therapy, that was not reflected on sales driven by the timing of revenue recognition and currency exchange fluctuations.

    Did it meet our expectations? The company reported total revenue of $2.4 million, operating expenses of $47.3 million, and EPS of ($1.54) for the full year of 2019 compared to our estimates of $3.0 million in revenue, $46.1 in operating expenses and…


    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.
 

Research electrocore ecor q4 2019 results lagged commercial success

Wednesday, March 25, 2020

electroCore (ECOR)

Q4 2019 Results: Lagged Commercial Success

electrocore Inc is a commercial-stage bioelectronic medicine company with a platform for non-invasive vagus nerve stimulation therapy initially focused on neurology and rheumatology. Its product gammaCore is FDA-cleared for the acute treatment of pain associated with migraine and episodic cluster headache in adults.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

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

    Fourth quarter 2019 financial results. The company focuses on two channels to commercialize gammaCore: i) the Federal Supply Schedule eligible entities and ii) the United Kingdom’s National Health Service. The net sales in Q4 were $675,000 compared to $683,000 in Q3 2019. There was a 24% sequential growth in paid months of therapy, that was not reflected on sales driven by the timing of revenue recognition and currency exchange fluctuations.

    Did it meet our expectations? The company reported total revenue of $2.4 million, operating expenses of $47.3 million, and EPS of ($1.54) for the full year of 2019 compared to our estimates of $3.0 million in revenue, $46.1 in operating expenses and…


    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.
 

COVID-19 Spread and Threat

Could a Natural Mutation Slowdown 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 Joshua Lederberg (see photograph below).

The best medical scientists, physicians, epidemiologists, microbiologists, and infectious disease experts are currently joining forces worldwide to find a way to stop the spreading of SARS-CoV-2, the coronavirus causing “Coronavirus Disease of 2019” (Covid-19), which has become a global pandemic. As of March 22, 2020, there are more than 335,400 people infected with SARS-CoV-2 worldwide, and more than 14,610 people have died from the disease.

Figure
1
– Structure of the new coronavirus, 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.

A picture containing indoor, sitting, old, photo

Description automatically generated

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

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.

New
Discoveries Could Speed up Vaccine Development

Recently, scientists at the University of Texas, Austin, discovered the mechanism of entry of SARS-CoV-2 into human cells (Science 2020, 367 (6483) p1260-1263). The Spike protein, or S-protein, is critical for viral entry. Another group of researchers led by Qiang Zhou, a research fellow at Westlake University in Hangzhou, China, have revealed how the new virus attaches to a receptor on respiratory cells called “angiotensin-converting enzyme 2”, or ACE2 (
Science March 4th, 2020: eabb2762 DOI: 10.1126/science.abb2762). Zhou and his team have now discovered the second part of the puzzle by describing how S-protein binds to ACE2 receptor on the surface of respiratory cells. This knowledge could be critical for the success of ongoing efforts to find a treatment or cure.

Figure
2
– Mechanism of entry of SARS-CoV-2 into human cells. The virus mechanism of entry is similar to the one utilized by the virus SARS-CoV, which caused the SARS outbreak of 2002. Panel A depicts “Spike protein” or “S-protein” on the surface of the coronavirus binding to “angiotensin-converting enzyme 2” (ACE-2) receptors on the surface of a human cell. Panel B shows the “type II transmembrane serine protease” (TMPRSS2) binding to and cleaving ACE-2 receptor, which activates the Spike protein of the coronavirus. Panel C shows viral entry. 

Source
– Pathogens 2020, 9(3) 231; https://doi.org/10.3390/pathogens9030231

As the medical community races to find a treatment/cure for Covid-19, 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?

(“Maybe
yes, Maybe not, Scientists say”)

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”.

Mutation
Allowing SARS-CoV-2 Jump from Bats to Humans
– 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 (Figure 2). 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 (Figure 2).

Mutations
Might Decrease Virulence
– Some experts believe that in the same fashion the virus experienced this gain of function mutation, allowing cut and activation of Spike protein (Figure 2), 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).

Other
Scientists Believe Mutations Will not Matter
– Other experts are not too optimistic. Nature does not always help us, they think. Their belief is that natural mutations do very little to change the outcome of a pandemic. Most viral mutations do not elicit a new biological trait, which could be selected by natural selection. Indeed, most mutations are silent and do not change the outcome of a pandemic. All coronaviruses have shown high mutation rates. There is no reason to believe that SARS-CoV-2 will be any different in terms of mutation rate, despite of being more contagious than other viruses in the coronavirus family. Like SARS-CoV and MERS-CoV, the SARS-CoV-2 originated from an ancestor coronavirus harbored by bats. However, the intermediary host between bats and humans for SARS-CoV-2 has not been identified yet. Given the high mutation rates of these viruses, there is no certainty that a new mutation could cause loss of virulence as the opposite could also occur. Since the start of the pandemic, scientists have been sequencing strains of SARS-CoV-2 isolated from infected patients, and not a single mutation has shown to have an effect on virulence. The virus is very contagious as it is, and it might not need further mutations to be naturally selected. Dr. Andrew Rambaut, a molecular evolutionary biologist at the University of Edinburg, believes that mutations will not help to change virulence or alter the outcome of the current SARS-CoV-2 pandemic. Dr. Rambaut has been studying the genomes of SARS-CoV-2 isolates from patients. SARS-CoV-2 has 30,000 nucleotides. Dr. Rambaut mentioned that SARS-CoV-2 accumulates an average of one to two mutations per month, which although relatively high, it is still a slower mutation rate than what has been seen for the influenza virus. He believes most mutations do not affect the virus behavior.

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), 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.

The
Singapore Story – Could a Mutation Partially Explain The City’s Success?

Although SARS-CoV2 genome seems to be more stable than the genomes of SARS-CoV and MERS-CoV, scientists have detected a SARS-CoV-2 variant containing a deletion of 382 nucleotides. This genetic variant of SARS-CoV-2 was isolated from eight infected patients in Singapore (“Discovery of a 382-nt deletion during the
early evolution of SARS-CoV-2
” – bioRxiv preprint doi: https://doi.org/10.1101/2020.03.11.987222). The authors think the SARS-CoV-2 variant is less virulent, which may lead to a more attenuated phenotype of the virus, and less severe Covid-19 disease. A similar genetic deletion mutation, with attenuated phenotype, was observed in SARS-CoV during the SARS outbreak of 2002-2003. At present, the views on the relative success of Singapore dealing with Covid-19 (Singapore was one of the first cities with Covid-19 cases, but statistics are far better than other cities and countries around the world) is attributed to the government’s speed and efficiency dealing with the crisis. However, it is also plausible that Singapore was dealing with a less virulent variant of SARS-CoV-2.

Mankind definitely needs its biggest minds to focus on Covid-19 pandemic. Governments worldwide are working in concert to establish proper quarantine rules and other strict measures to slow the spreading of the disease. We hope new treatments and vaccines will be developed by the biotechnology/pharmaceutical industry. Patients are waiting, many lives could be saved by these efforts.

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

quote
by Joshua Lederberg.

Joshua Lederberg (1925-2008) was an American molecular biologist known for his work in microbial genetics, artificial intelligence, and the United States space program. He was 33 years old when he won the 1958 Nobel Prize in Physiology or Medicine for contributions to the science of genetics.

Dr.
Joshua Lederberg (right) receiving the National Medal of Science from George
H.W. Bush

We need our heroes now, physicians and medical scientists who have dedicated their entire lives to save mankind from the threat of a virus.

COVID-19, Where we are Right Now

Everything You Always Wanted to Know About Coronavirus (but didn’t know who to ask)

(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 Coronavirus Outbreak

As of March 24th, there were 427,663 people infected with Covid-19 worldwide, and 18,605 have died from the disease. Although the epidemic started in China, the total number of cases is higher outside of China. More countries (Italy, Spain, Germany, and others) are taking extreme measures by closing borders to prevent the spread of the infection. The International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the outbreak a pandemic. On March 13, the President of the United States declared the COVID-19 outbreak a national emergency. Today, there are 44,183 confirmed cases and 544 people have died from the disease (March 24h, 2020).

At present, there is no specific antiviral treatment for COVID-19, and no vaccine is currently available. The treatment is only symptomatic, oxygen therapy represents the primary intervention for patients with pneumonia due to severe infection. Mechanical ventilation may be necessary in cases of respiratory failure refractory to oxygen therapy, whereas hemodynamic support is essential for managing septic shock. 

Exhibit 1: Fact sheet for SARS-CoV-2

Source: CDC, WHO, and WSJ

Exhibit 2: Epidemiological Comparison
of Respiratory Infections

Coronaviruses are single-stranded RNA, enveloped viruses with spike glycoproteins on the envelope. That means the viral genome consists of a strand of RNA (instead of DNA) and each viral particle is wrapped in a protein called envelope. The virus’s genome consists of 30,000 genetic letters (relatively large for a virus). Four structural proteins make up a coronavirus particle: the nucleocapsid, envelope, membrane, and spike (Exhibit 3). The nucleocapsid makes the genetic core, encapsulated in a sphere formed by the envelope and membrane proteins.

Exhibit
3. Coronavirus

 

Source:
Liu C. et al. “Research and Development on Therapeutic Agents and Vaccines for
COVID-19 and Related Human Coronavirus Diseases”, ACS Cent. Sci., March 2020

The virus enters the body through the nose, mouth or eyes by attaching to cells that produce a protein called ACE2. The spike proteins bind to receptors (ACE) on host cells and invade a cell. Similar to other viruses, coronaviruses release the genetic material (RNA) after invading a host cell. The genetic material gets incorporated into the host cell, hijacking its replication machinery to make many copies, which are released infecting other cells. Millions of copies of the virus can be produced from each infected cell. Most Covid-19 infections cause a fever as the immune system fights to clear the virus from the body. In severe cases, the immune system can overreact and begin to attack lung cells. In some cases, Covid-19 infection can lead to acute respiratory dysfunction, and possibly death.

Coughing and sneezing can expel virus droplets onto nearby people and surfaces, where the virus can remain infectious for several hours to several days. Coronavirus has a long half-life on various surfaces as listed in Exhibit 4. The C.D.C. recommends that people diagnosed with Covid-19 wear masks to reduce the release of viruses.  

Exhibit
4. Stability of Coronavirus Infection

Source: This week in virology

An overview of published scientific information was gathered by ACS Cent. Sci. March 2020 (Liu C. et al. “Research and Development on Therapeutic Agents
and Vaccines for COVID-19 and Related Human Coronavirus Diseases”.
The article highlights antiviral strategies to target complex molecular interactions involved in coronavirus infection and replication. Some of agents known to be effective against other RNA viruses including SARS-CoV, MERS-CoV, influenza, HCV, and Ebola as well as anti-inflammatory drugs are or can be repurposed to target coronavirus (Exhibit 5).

Exhibit
5.
Existing Drugs with Therapeutic Potentials for COVID-19 (Drug Repurposing)

a)
Drugs under clinical trials for treating COVID-19 (repurposing). b) Drugs under
clinical trials for other virus-induced diseases. c) Ritonavir is a
pharmacokinetic profile enhancer that may potentiate the effects of other
protease inhibitors due to its ability to attenuate the degradation of those
drugs by the liver enzyme CYP3A4 and thus is used in combination with antiviral
Lopinavir.37 d) An inhibitor of viral entry to host cells. Its direct action on
S protein and ACE2 is yet to be confirmed.

Source:
Liu C. et al. “Research and Development on Therapeutic Agents and Vaccines for
COVID-19 and Related Human Coronavirus Diseases”, ACS Cent. Sci., March 2020

Chloroquine, an antimalarial drug, was shown to be effective in treating coronavirus in China. Chloroquine phosphate, which has been used for more than 70 years, was selected from tens of thousands of existing drugs after drug screening. The medicine has been under clinical trials in China. A fixed dose of the anti-HIV combination, lopinavir?ritonavir, is currently in clinical trials with Arbidol or ribavirin.

Some potential targets, their roles in viral infection, and representative existing drugs or drug candidates that act on the corresponding targets in similar viruses are also summarized in Exhibit 6.

Exhibit
6. Key Proteins and Their Roles during the Viral Infection Process

Source:
Liu C. et al. “Research and Development on Therapeutic Agents and Vaccines for
COVID-19 and Related Human Coronavirus Diseases”, ACS Cent. Sci., March 2020

Identification of potential targets is important for the development of efficacious drugs with high target specificity and/or uncovering existing drugs that could be repurposed to treat SARS-CoV-2 infection. 3CLpro and PLpro are two viral proteases responsible for the cleavage of viral peptides into functional units, this process is essential for virus replication and packaging within the host cells. Thus, drugs that target these proteases in other viruses such as HIV drugs, lopinavir and ritonavir, are currently marketed. RdRp is the RNA polymerase responsible for viral RNA synthesis (another crucial process for viral infections).  Conceivably, the interaction of viral S protein with its receptor ACE2 on host cells, and subsequent viral entry into the cells, may also be a viable drug target. The broad spectrum antiviral drug Arbidol, which functions as a virus-host cell fusion inhibitor to prevent viral entry into host cells against the influenza virus, is also being tested in a clinical trial for the treatment of SARS-CoV-2. The protease TMPRSS2 produced by the host cells plays an important role in proteolytic processing of S protein priming to the receptor ACE2 binding in human cells. Camostat mesylate, a clinically approved TMPRSS2 inhibitor, was shown to block SARS-CoV-2 entry to human cells, indicating its potential as a drug for COVID-19. ACE2 is a potent negative regulator restraining overactivation of the renin-angiotensin system (RAS) that may be involved in the elicitation of inflammatory lung disease. The notion that ACE2 mediates coronavirus invasion is largely accepted; however, it remains unclear how the levels or activities of ACE2, AT1 receptors, and AT2 receptors are altered in coronavirus-induced diseases due to the limited number of studies. It is yet to be determined whether some drugs or compounds that target any of these proteins (e.g., L-163491 as a partial antagonist of AT1 receptor and partial agonist of AT2 receptor) may alleviate coronavirus induced lung injury.

Current Clinical Activities

Rising Pharmaceuticals’s chloroquine phosphate (anti-malarial drug) had demonstrated marked efficacy and acceptable safety in treating COVID-19 associated pneumonia in multicenter clinical trials conducted in China, as stated by the State Council of China news briefing on February 17, 2020. It was claimed that the patients treated with the medicine have shown better indicators than their control groups, fever, improvement of CT images of lungs, and the percentage of patients with negative in viral nucleic acid tests.

Gilead’s
remdesivir
was the first drug to enter the clinic against coronavirus. Remdesivir was initially tested in humans with Ebola virus disease and has shown promise in animal models for MERS and SARS. Two ongoing Phase 3 studies are assessing Remdesivir (that blocks RNA polymerase) for the treatment of COVID-19 in the United States and China.  These randomized, open-label, multicenter studies will have readouts anticipated in April 2020.

Moderna became the second company to enter the clinic to combat coronavirus following Gilead. Moderna is developing an mRNA-based vaccine mRNA-1273 to protect against coronavirus infection. The mRNA codes instruct the body’s cells to synthesize certain proteins from the virus that don’t infect a person but activate an immune response. On March 16, the first patient was dosed with mRNA-1273. The open-label trial will be tested on 45 healthy volunteers between the ages of 18 and 55, according to clinicaltrials.gov over approximately six weeks. The volunteers will be divided into three groups, each of which will receive a different dosage. Results from the Phase 1 trial are expected in June.

Sanofi and Regeneron Pharmaceuticals have started a clinical program evaluating Kevzara (sarilumab) in patients hospitalized with severe COVID-19. Kevzara is an interleukin-6 (IL-6) receptor antagonist approved by the U.S. Food and Drug Administration (FDA) in 2017 to treat adults with moderately to severely active rheumatoid arthritis. The U.S.-based trial is expected to begin in New York, to assess the safety and efficacy of adding Kevzara to usual supportive care, compared to supportive care plus placebo. The multi-center, double-blind, Phase 2/3 trial has an adaptive design. The data is anticipated to readout in April 2020.

Roche and Genentech also initiated a Phase 3 trial of Actemra in hospitalized patients with severe COVID-19 pneumonia in China and Italy. The primary and secondary endpoints of the trial include clinical status, mortality, mechanical ventilation, and ICU variables. Actemra, an interleukin-6 (IL-6) receptor antagonist, was approved by the FDA in 2010 for the treatment of moderately to severely active rheumatoid arthritis (RA) patients.

 

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Capitalism Versus
Coronavirus

Capitalism Versus Coronavirus

Current Efforts to Combat Coronavirus Pandemic

(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.)

Current Efforts to Combat Coronavirus Pandemic

As the outbreak of the novel coronavirus disease COVID-19, caused by the SARS-CoV-2 virus, rapidly spreads around the globe, scientists and physicians have been racing to understand this new virus and the pathophysiology of this disease to uncover possible treatment regimens and discover effective therapeutic agents and vaccines.

Exhibit 7. Selected Companies Combatting Coronavirus

Unsupported image type.

Source: Noble Capital

The outbreak gave rise to an active business development environment for deal-making to create join ventures and collaborations focused on the development of an effective therapy. In addition to multiple academic collaborations, recent industry deals include:

  • Abcellera with Eli Lilly
  • BioNtech with Pfizer
  • Generex with Epivax
  • Vaxart with Emergent BioSolutions
  • Vir collaborating with Biogen and Alynam

On the therapeutic side, Gilead’s remdesivir was the first drug to enter the clinic against coronavirus. Remdesivir was initially tested in humans with Ebola virus disease and has shown promise in animal models for MERS and SARS. Two ongoing Phase 3 studies are assessing Remdesivir (that blocks RNA polymerase) for the treatment of COVID-19 in the United States and China.  These randomized, open-label, multicenter studies will have readouts anticipated in April 2020.

Sanofi and Regeneron Pharmaceuticals have started a clinical program evaluating Kevzara (sarilumab) in patients hospitalized with severe COVID-19. Kevzara is an interleukin-6 (IL-6) receptor antagonist approved by the U.S. Food and Drug Administration (FDA) in 2017 to treat adults with moderately to severely active rheumatoid arthritis. The U.S.-based trial is expected to begin in New York, to assess the safety and efficacy of adding Kevzara to usual supportive care, compared to supportive care plus placebo. The multi-center, double-blind, Phase 2/3 trial has an adaptive design. The data is anticipated to readout in April 2020.

Roche and Genentech also initiated a Phase 3 trial of Actemra in hospitalized patients with severe COVID-19 pneumonia in China and Italy. The primary and secondary endpoints of the trial include clinical status, mortality, mechanical ventilation, and ICU variables. Actemra, an interleukin-6 (IL-6) receptor antagonist, was approved by the FDA in 2010 for the treatment of moderately to severely active rheumatoid arthritis (RA) patients.

Can-Fite BioPharma (CANF) is also exploring piclidenoson (A3 adenosine receptor agonist (A3AR) small molecule) on Coronaviruses viral load in a mammalian cell model system in collaboration with the Lewis Katz School of Medicine at Temple University, Philadelphia. Piclidenoson is currently in Phase 3 clinical stage for the treatment of patients with rheumatoid arthritis and it has anti-viral effects against single stranded RNA viruses.

Cocrystal is collaborating with Kansas State University Research Foundation (KSURF) to further develop proprietary broad-spectrum antiviral compounds for the treatment of Norovirus and Coronavirus infections. Cocrystal uses structure-based technologies to identify antiviral drugs. 

CytoDyn (CYDY) is developing leronlimab (PRO 140), a CCR5 antagonist with the potential for multiple therapeutic indications. The company submitted an investigational new drug (IND) application to the FDA to conduct a Phase 2 clinical trial with leronlimab (PRO 140) as a therapy for patients who experience respiratory complications as a result of contracting COVID-19.

On the vaccine front, among over 40 vaccines are in development, Moderna’s mRNA-1273 is the only one currently in the clinic. Moderna generates vaccines that contain nucleic acids with genetic codes (mRNA sequence). These codes instruct the body’s cells to synthesize certain proteins from the virus that don’t infect a person but activate an immune response. On March 16, the first patient was dosed with mRNA-1273 and Moderna became the second company to enter the clinic to combat coronavirus following Gilead. The open-label trial will be tested on 45 healthy volunteers between the ages of 18 and 55, according to ClinicalTrials.gov over approximately six weeks. The volunteers will be divided into three groups, each of which will receive a different dosage. Results from the Phase 1 trial are expected in June.

Dyadic is collaborating with The Israel Institute for Biological Research (IIBR) to develop therapeutics against Covid-19. As per the collaboration, IIBR will develop potential candidates and Dyadic will use their C1 technology to manufacture vaccines and monoclonal antibodies. C1 expression system is at the discovery stage to manufacture large volumes of low-cost biologic products such as enzymes and proteins.

Generex Biotechnology (GNBT) has signed a contract with EpiVax to use their computational tools to predict epitopes that can be used to generate peptide vaccines against the Covid-19 using the patented NuGenerex Immuno-Oncology (NGIO – Formerly Antigen Express) Ii-Key technology. EpiVax has identified a number of “hotspots” in the amino acid sequences of the nCOV-2019 coronavirus proteins. Using the epitopes predicted by EpiVax, Generex will manufacture a series of synthetic amino acid peptides that mimic the epitopes of the virus and send them to China for testing. EpiVax is collaborating with University of Georgia to develop a novel coronavirus SARS-CoV -2 (COVID-19) vaccine.

Heat Biologics (HTBX) is developing therapeutic vaccines in collaboration with the University of Miami to support the development of a vaccine leveraging Heat’s proprietary gp96 platform designed to target the SARS-CoV-2 coronavirus that causes COVID-19.

Tonix Pharmaceuticals announced a collaboration with Southern Research to develop a vaccine TNX-1800 against Covid-19. The company is using its proprietary horsepox virus vector platform for the development of TNX-1800. Tonix has previously reported that horsepox has efficacy as a vaccine and good tolerability in mice and cynomolgus macaques. 

Vaxart uses a specific virus called adenovirus type 5 (Ad5) as part of its novel technology platform to help train the immune system to recognize and defeat dangerous invading pathogens. The Ad5 virus serves as a vector to deliver the antigen and booster molecules to stimulate immune responses. The antigen is the pathogen protein designed to trigger the targeted immune response and the booster molecule is an adjuvant that stimulates and adds to the immune response. Vaxart can use the same vector with different antigens to provide an effective standardized and scalable approach for vaccine development. Vaxart’s approach to develop a vaccine for Covid-19 involves generating potential vaccine candidates based on the published genome of the 2019 Novel Coronavirus (2019-nCoV).

Suggested Reading:

Everything You Always Wanted to Know About Coronavirus

Research – Helix Biopharma (HBPCF) – Improved Cash Position Bodes Well for Future Prospects

Wednesday, March 18, 2020

Helix Biopharma (HBPCF)

Improved Cash Position Bodes Well for Future Prospects

Helix BioPharma Corp is a Canada-based clinical-stage biopharmaceutical company focused on cancer drug development. It develops therapies in the field of immuno-oncology based on its proprietary technology mainly in the areas of cancer prevention and treatment. The company has Tumor Defense Breakers (L-DOS47), and Tumor Attackers (CAR-T) product candidates in the pipeline.

Cosme Ordonez, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Unique Technology Targeting Tumor Microenvironment (TME). We view Helix Biopharma as a pioneer in the cancer area as the company is developing a platform technology targeting the tumor microenvironment. Helix’s technology is designed to reduce tumor acidity, an escape mechanism which cancer cells utilize to evade the anti-tumor immune response. Tumor acidity has been shown to correlate with resistance to anti-cancer treatment and poor prognosis for cancer patients.

    Lead drug L-DOS47 for the Treatment of Cancer. Helix Biopharma’s lead drug, L-DOS47, is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) and pancreatic cancer. In a clinical trial using L-DOS47 as a mono-therapy for the treatment of NSCLC, treated patients showed reductions in tumor size and…



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NOTE: investment decisions should not be based upon the content of
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Research helix biopharma hbpcf improved cash position bodes well for future prospects

Wednesday, March 18, 2020

Helix Biopharma (HBPCF)

Improved Cash Position Bodes Well for Future Prospects

Helix BioPharma Corp is a Canada-based clinical-stage biopharmaceutical company focused on cancer drug development. It develops therapies in the field of immuno-oncology based on its proprietary technology mainly in the areas of cancer prevention and treatment. The company has Tumor Defense Breakers (L-DOS47), and Tumor Attackers (CAR-T) product candidates in the pipeline.

Cosme Ordonez, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Unique Technology Targeting Tumor Microenvironment (TME). We view Helix Biopharma as a pioneer in the cancer area as the company is developing a platform technology targeting the tumor microenvironment. Helix’s technology is designed to reduce tumor acidity, an escape mechanism which cancer cells utilize to evade the anti-tumor immune response. Tumor acidity has been shown to correlate with resistance to anti-cancer treatment and poor prognosis for cancer patients.

    Lead drug L-DOS47 for the Treatment of Cancer. Helix Biopharma’s lead drug, L-DOS47, is in Phase II clinical trials for the treatment of non-small cell lung cancer (NSCLC) and pancreatic cancer. In a clinical trial using L-DOS47 as a mono-therapy for the treatment of NSCLC, treated patients showed reductions in tumor size and…



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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 – PDS Biotechnology (PDSB) – Overcoming Limitations of Cancer Vaccines

Monday, March 9, 2020

PDS Biotechnology (PDSB)

Overcoming Limitations of Cancer Vaccines

PDS Biotechnology Corp operates as a clinical stage biotechnology company, principally involved in drug discovery in the United States. It is primarily engaged in the treatment of various early-stage and late-stage cancers, including head and neck cancer, prostate cancer, breast cancer, cervical cancer, anal cancer, and other cancers. Its products are based on the proprietary Versamune platform technology, which activates and directs the human immune system to unleash a powerful and targeted attack against cancer cells.

Cosme Ordonez, Senior Research Analyst, Noble Capital Markets, Inc.

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

We are initiating coverage of PDS Biotechnology. 

PDS Biotechnology is developing a platform technology known as Versamune for the treatment of cancer. Versamune consists of cationic (positively charged) lipids mix with tumor or viral antigens. Cationic lipids act as a vehicle to deliver the antigens to dendritic cells, which mature and help inducing a potent T-cell driven anti-cancer immune response.

The Company’s lead product is Versamune-HPV, which is currently in Phase II clinical trials for the treatment of human cancers associated with infection by human papillomavirus (HPV). PDS Biotechnology is collaborating with Merck & Co., and the National Cancer Institute (NCI) to fund and advance its clinical programs. Based on our analysis of existing preclinical and clinical data, we believe…



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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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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 pds biotechnology pdsb overcoming limitations of cancer vaccines

Monday, March 9, 2020

PDS Biotechnology (PDSB)

Overcoming Limitations of Cancer Vaccines

PDS Biotechnology Corp operates as a clinical stage biotechnology company, principally involved in drug discovery in the United States. It is primarily engaged in the treatment of various early-stage and late-stage cancers, including head and neck cancer, prostate cancer, breast cancer, cervical cancer, anal cancer, and other cancers. Its products are based on the proprietary Versamune platform technology, which activates and directs the human immune system to unleash a powerful and targeted attack against cancer cells.

Cosme Ordonez, Senior Research Analyst, Noble Capital Markets, Inc.

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

We are initiating coverage of PDS Biotechnology. 

PDS Biotechnology is developing a platform technology known as Versamune for the treatment of cancer. Versamune consists of cationic (positively charged) lipids mix with tumor or viral antigens. Cationic lipids act as a vehicle to deliver the antigens to dendritic cells, which mature and help inducing a potent T-cell driven anti-cancer immune response.

The Company’s lead product is Versamune-HPV, which is currently in Phase II clinical trials for the treatment of human cancers associated with infection by human papillomavirus (HPV). PDS Biotechnology is collaborating with Merck & Co., and the National Cancer Institute (NCI) to fund and advance its clinical programs. Based on our analysis of existing preclinical and clinical data, we believe…



Get the full report on Channelchek desktop.

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.
 

Why Gold Could Retain its Luster

Gold’s Appeal is Driven by More than Coronavirus Fears

(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.) 

Year-to-date through March 4, 2020, gold futures prices have risen 7.0%, following a gain of 16.5% in 2019.  Most recently, gold prices have responded to the economic risks posed by the Coronavirus 2019 (Covid-19) and ensuing market volatility and uncertainty that has followed the virus’s spread globally.  However, many believe that gold has a host of macroeconomic and market factors working in its favor.  These include the path of real interest rates, the outlook for U.S. dollar strength relative to other currencies, balance of trade and U.S. government fiscal policies; all of which influence the price of gold. 

With the rise in precious metals prices, mining stocks may be an attractive way to gain exposure to silver and gold given the disproportionate percentage impact higher commodity prices may have on a company’s bottom line and valuation for a given percentage increase in the commodity itself. 

While past pandemics such as Severe Acute Respiratory Syndrome (SARS) in 2003, H1N1 Influenza Virus (Swine Flu) in 2009, Middle East Respiratory Syndrome (MERS) in 2012 have acted as short term catalysts for gold prices when investors sought safe haven assets, investors should view longer-term fundamentals when evaluating precious metals investments.   

The Case for Gold Investments:

Pandemic threats enhance gold’s appeal.  During past pandemics, gold prices benefited as investors turned to precious metals for a haven.      

Lower interest rates are supportive of gold prices.  On March 3, 2020, the Federal Open Market Committee lowered the target rate for the federal funds rate by 50 basis points to a range of 1.0% to 1.25%.  The action was taken to counter risks to economic activity posed by the spread of the Coronavirus.

Increasing government deficits and debt.  According to the Congressional Budget Office, the U.S. government’s public debt is now greater than $22 trillion, its highest level in history.  According to the U.S. Treasury Department, the deficit amounted to $984.4 million in fiscal year 2019 and was $398.2 through January of fiscal year 2020.  The government’s fiscal year begins in October.  The Congressional Budget Office projects the federal budget deficit will be $1.0 trillion in 2020 and average $1.3 trillion between 2021 and 2030, representing 4.6% of gross domestic product in 2020 to 5.4% in 2030.  

Looking out for the next recession.  Precious metals equities may provide a hedge against volatility in the equity markets and offer diversification benefits.  Many believe the bull market that began in 2009 is in its late innings and a recession could be just around the corner.  These concerns have only been magnified by the coronavirus’ impact on economic activity which is well documented.  Travel has been slowed, global supply chains have been disrupted and to date, the virus is still spreading globally.   

The Case for Non-Gold Assets :

Coronavirus will be contained.  Like past epidemics and/or pandemics, massive resources on multiple fronts are aimed at containing such health threats.  If past epidemics are any indication, the coronavirus will be eventually contained although the timing is uncertain.       

Better than expected economic growth.  With the U.S. Presidential election on the horizon, the Trump administration is doing everything in their power to maintain economic growth and the health of the stock market.  The Federal Reserve has already stepped up and the government has ample means at its disposal (i.e., spending) to stimulate the economy.  Therefore, the economy could get past the coronavirus and worries about a recession could recede.   

Dollar retains its strength relative to other currencies.  Despite rising government deficits and debt along with relatively low interest rates, the dollar has remained relatively strong.  With recent trade frictions and global instability, the dollar has benefited from a flight to quality as other countries   

Big Picture:

Gold prices will likely hold recent gains and/or move higher as investors increasingly include gold as part of a well-diversified portfolio.  While fears of global pandemics often lead investors to seek safe-haven investments, the impacts can be short-lived depending on their longer-term economic impacts.  With the coronavirus, it likely intensifies many of the factors that are already supportive of gold prices, including lower interest rates, worries about global economic growth and increased government spending.  Rather than relying on short-term drivers of precious metals prices, investors should evaluate longer-term fundamentals and reap the benefits of diversification with investments in precious metals mining equities and/or bullion.

Sources:

Monthly
Treasury Statement, Receipts and Outlays of the United States Government, For
Fiscal Year 2020 through January 31, 2020
, U.S. Department of the Treasury, January 2020.

The
Budget and Economic Outlook: 2020 to 2030
, Congressional Budget Office, January 2020. 

Is
Investing in Gold Worth It In 2020
, Forbes, Tyler Gallagher, March 3, 2020.

 Coronavirus
Epidemic Emphasizes the Need to Buy Gold
, CCN, Ayush Singh, January 22, 2020.

The
Coronavirus:  Killer Bug and Economic
Pandemic
, Red Rock Secured, Sean Kelly, March 4, 2020.

Here’s
the Investment Strategy Bridgewater’s Ray Dalio is Using to Deal with the
Coronavirus
, Cnbc, Patti Domm, January 30, 2020.

The Business of Mass-Producing Vaccines

Dyadic CEO Discusses how his Company Could Expedite Vaccine Production

(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.)

In an interview, Dyadic CEO Mark Emalfarb told Trish Regan of FOX Business News that his company has the technology to allow them to mass-produce a vaccine should one get approved. “We developed the technology platform that we’ve been developing for years over two and half decades to make proteins at large scale, at very low cost,” Emalfarb said. Watch
Video

Research – Dyadic International Inc. (DYAI) – Progress and Efforts Continues to Validate C1 Platform

Wednesday, February 26, 2020

Dyadic International Inc. (DYAI)

Progress and Efforts Continues to Validate C1 Platform

Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant biopharmaceutical gene expression platform based on the industrially proven hyper productive engineered fungus Thermothelomyces heterothallica (formerly Myceliophthora thermophila), named C1.
The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development, lower production costs and improve the performance of biologic vaccines and drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines and drugs, such as virus like particles (VLPs) and antigens, monoclonal antibodies, Fab antibody fragments, Fc-Fusion proteins, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research and development collaborations, licensing arrangements and other commercial opportunities with its partners and collaborators to leverage the value and benefits of these technologies in development and manufacture of biopharmaceuticals. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic vaccines, drugs and other biologic products to market faster, in greater volumes, at lower cost, and with new properties to drug developers and manufacturers, and improve access and cost to patients and the healthcare system, but most importantly save lives.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

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

Dyadic is progressing towards generating human-like glycosylation by C1 platform. Dyadic ’s research partner VTT Technical Research Centre of Finland made further progress in glycoengineering by expressing another human-like glycan (G2). The company currently generated two (G0 and G2) of the four targeted mammalian glycans (Exhibit 1).

Glycosylation is key in bioproduction. Glycosylation refers to adding a carbohydrate to a protein. Majority of biologics (over 50%) are glycosylated including antibodies and cytokines. Glycans have marked effects on therapeutic efficacy, immunogenicity, protein stability, moderation of half-life of proteins. Therefore, glycoengineering is crucial in drug development. On the way to validate C1 technology in bioproduction, glycoengineering to produce…



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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
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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 dyadic international inc- dyai progress and efforts continues to validate c1 platform

Wednesday, February 26, 2020

Dyadic International Inc. (DYAI)

Progress and Efforts Continues to Validate C1 Platform

Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant biopharmaceutical gene expression platform based on the industrially proven hyper productive engineered fungus Thermothelomyces heterothallica (formerly Myceliophthora thermophila), named C1.
The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development, lower production costs and improve the performance of biologic vaccines and drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines and drugs, such as virus like particles (VLPs) and antigens, monoclonal antibodies, Fab antibody fragments, Fc-Fusion proteins, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research and development collaborations, licensing arrangements and other commercial opportunities with its partners and collaborators to leverage the value and benefits of these technologies in development and manufacture of biopharmaceuticals. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic vaccines, drugs and other biologic products to market faster, in greater volumes, at lower cost, and with new properties to drug developers and manufacturers, and improve access and cost to patients and the healthcare system, but most importantly save lives.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

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

Dyadic is progressing towards generating human-like glycosylation by C1 platform. Dyadic ’s research partner VTT Technical Research Centre of Finland made further progress in glycoengineering by expressing another human-like glycan (G2). The company currently generated two (G0 and G2) of the four targeted mammalian glycans (Exhibit 1).

Glycosylation is key in bioproduction. Glycosylation refers to adding a carbohydrate to a protein. Majority of biologics (over 50%) are glycosylated including antibodies and cytokines. Glycans have marked effects on therapeutic efficacy, immunogenicity, protein stability, moderation of half-life of proteins. Therefore, glycoengineering is crucial in drug development. On the way to validate C1 technology in bioproduction, glycoengineering to produce…



Get the full report on Channelchek desktop.

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.