Research – electroCore (ECOR) – ECOR Braves Choppy Waters

Tuesday, June 11, 2019

electroCore (ECOR)

Choppy Waters for electroCore

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 full report for price target, fundamental analysis and rating.

  • CEO Frank Amato Departs. Yesterday, electroCore announced another departure from the leadership team since the annual shareholder meeting held on June 7, 2019. Frank R. Amato is leaving the company after serving as a Chief Executive Officer since 2016. He will continue to serve as the CEO and board member until a new CEO is recruited. This position is expected to be filled before September 30, 2019.
  • Restructuring Continues.We expect the company to pursue additional steps to reshape the leadership team following two departures within the past week. Besides Frank’s departure… 


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News – A Chimera Becomes a Novel Cancer Treatment (Part 1)

CAR-T and the Possibility of Cancer Treatment, Part 1

style=”margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;”>click her for part two of this article series

(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 listed in the “Balanced” section)

Chimeric Antigen
Receptor T cell therapy (CAR-T) is a gene therapy designed to harness the
potency of antibodies and T-lymphocytes into one single medicine for the
treatment of cancer. CAR-T therapy could be viewed as a “living anti-cancer
drug” as the medicine itself consists of a living cell, which is genetically
engineered to find and destroy cancer cells. Dr. Carl H. June pioneered this
technology at the University of Pennsylvania, where the first tests were
conducted in cancer patients in 2010. Seven years later, the U.S. Food &
Drug Administration (FDA) approved this novel gene therapy for the treatment of
patients suffering from “B-cell precursor acute lymphoblastic leukemia” (ALL),
a type of blood cancer known to be the most common malignant growth in
children.

Thus far, anti-cancer
antibodies have been one of the most successful drug classes for the treatment
of cancer patients. Antibody drugs such as Roche’s Avastin, Herceptin and Rituxan have prolonged survival of many
cancer patients. Another class of medicines, known as T-infiltrating
lymphocytes (TILs), has been shown to be effective as an anti-cancer treatment.
Given the relative success of both therapeutic strategies, the question is, how
do you combine both treatments into one potent anti-cancer drug?

CAR-T represents
the solution to this riddle. CAR-T consists of two main components: 1) the
tumor associated antigen (TAA) domain of an anti-cancer antibody (scFV) linked through
a spacer/transmembrane region to 2) the cytoplasmic domain of the receptor of a
cancer-killing T lymphocyte. The new anti-cancer drug, CAR-T, is a genetically
engineered T-lymphocyte expressing a chimeric T cell receptor on its surface
(Figure 1). This chimera consists of the binding domain of the antibody
(external domain protruding from the cell surface), fused to the signaling portion
CD3 of the T cell receptor (internal domain facing the cellular cytoplasm).

Figure 1 – Structure of a CAR-T construct. The left panel depicts a
CAR-T medicine (first generation), whereas the right panel depicts the natural
T cell receptor, TCR. In the CAR-T construct (left panel), the binding domain
(light blue/purple) of an anti-cancer antibody (scFV) replaces the alpha/beta
chain portion (green/red) of the natural TCR (right panel). The transmembrane
and cytoplasmic components of CAR-T and TCR, including CD3 domain, are depicted
in blue.

 

Source – Oncotarget 2015,
8(52)90521-90531 ?

To generate a
CAR-T drug, five main steps are required (Figure 2):

  1. blood from the patient is extracted
  2. T-lymphocytes are purified from extracted
    blood, and subsequently genetically modified to express the CAR chimeric
    receptor
  3. CAR-T cells are grown in vitro (ex vivo)
  4. Once CAR-T cells are grown to reach a
    therapeutic dose, they are injected back into the patient
  5. Injected CAR-T cells are engineered to find
    and kill cancer cells

Source – The University of Texas
Southwestern Medical Center

Research – electroCore (ECOR) – Departing Founder and Chief Science and Strategy Officer

Wednesday June 5, 2019

electroCore (ECOR)

Continuing Execution of the Redeployment Plan

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 full report for price target, fundamental analysis and rating.

Founder and Chief Science and Strategy Officer departs. electroCore announced another event as part of the redeployment plan that emerged on May 29. Founder Joseph P. Enrico, who served as the Company’s Chief Science and Strategy Officer,  agreed to leave the company, effective as of June 8, 2019. He co-founded the company in 2005 and served in multiple roles including Chief Executive Officer (CEO) prior taking his current role in 2016. He remains as a Board Director and holds 2.2% equity stake in the company.

Chief Medical Officer to take over the strategy role. Management stated plans to continue with the current leadership team. Tony Fiorino, M.D. Ph.D. will continue to serve as Chief…


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Research – electroCore (ECOR) – Plans to Remove Headwinds

Friday, May 31, 2019

electroCore (ECOR)

Can the Reduced Cash Burn Calm Ragged Nerves?

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 full report for price target, fundamental analysis and rating.

  • Concern around the high cash burn is lowered. electroCore implemented a cost reduction and deployment plan reducing the cash burn to $2.3 million from $4 million per month, effective by June 2019. We view extension of the cash runaway as a positive road map for the company, but we believe the stock will remain under pressure until the company shows a solid revenue ramp-up.
  • Basis of the cost reduction plan. The cost reduction was endowed by i) reducing work force to 55 positions from 91 – eliminating sales, medical affairs personnel, ii) abolishing cash compensation of board servicing by independent directors, iii) voluntary acceptance of stock compensation in lieu of cash compensation by Chief Executive Officer Francis Amato and iv) postponing current clinical operations – to be determined following the company’s board meeting on June.



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Research – Trovagene (TROV) – Agreement with Nektar Therapeutics

Friday, May 24, 2019

Trovagene Inc. (TROV)

What a Preclinical Agreement Means

TrovaGene Inc is a US-based life science company which focuses on the development and commercialization of a proprietary molecular genetic detection technology for use in pharmaceutical development, clinical research and medical testing across a variety of clinical disciplines, including oncology and virology. 

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

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

  • Early Stage Development Agreement with Nektar Therapeutics. Trovagene announced a research and development agreement
    with Nektar Therapeutics (NKTR, Not Covered) to assess Onvansertib in
    combination with Onzeald (etirinotecan pegol) in preclinical colorectal cancer
    model.
  • The basis of the agreement. The preclinical work includes two different colorectal cancer
    models; BRAF-mutant and KRAS-mutant. Management stated that Nektar is
    re…



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Research – electroCore (ECOR) – Stock price doesn’t reflect the value of gammaCore

Friday, May 17, 2019

electroCore (ECOR)

Has the stock overreacted?

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 full report for price target, fundamental analysis and rating.

  • Current stock price doesn’t reflect the value of
    gammaCore. 
    Following and investor call on May 14th, ECOR stock lost over 40% of its value. While we recognize the slower than anticipated revenue ramp and prolonged timelines for additional payer agreements, we would like to emphasize gammaCore’s potential in the multi-billion-dollar migraine market.
  • Revenues should ramp up. The company currently has agreements established with three large payers (CVS Caremark, Highmark and Federal Supply Schedule). As the managem… 







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Research – electroCore (ECOR) – First quarter 2019 results are below expectations

Thursday, May 16, 2019

electroCore (ECOR)

Will Revenue Ramp up in the Next Quarters?

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 full report for price target, fundamental analysis and rating.

  • First quarter 2019 results are
    below expectations. 
    The company reported $0.4 million of revenue (+11%), 2,200 prescribing physicians (+22%) and consistent prescriptions in this quarter relative to the previous quarter. In the quarter, electroCore expanded coverage of reimbursement with payers (CVS Caremark, Highmark and federal supply schedule (FSS)), however this has not yet impacted revenue growth.
  • Acceleration is anticipated in the next
    quarters. 
    We are assessing the company’s progress and scrutinizing the market uptake of gammaCore in the next quarters of 2019. On the call, management stated that the modest revenue ramp is dri… 




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Research – ProMIS Neurosciences (PMN:CA) – First quarter 2019 progression

Wednesday, May 15, 2019

ProMIS Neurosciences (PMN:CA)

Progress in Q1 Bodes Well For Partnership Opportunities.

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).     
  

Cosme Ordoñez, M.D., Ph. D. , Life Sciences Analyst, Noble Capital Markets, Inc.

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  • Antibody drug
    candidates identified.
     In Q1/2019, ProMIS Neurosciences identified several antibody drug candidates for the treatment of Parkinson’s disease. These antibodies target toxic forms of alpha synuclein, which play a critical role on the development and progression of this illness.
  • Parkinson’s program update. The progress made in Parkinson’s program was presented at “The 14th International Conference on Alzheimer’s & Parkinson’s Diseases” held in Lisbon, Portugal, from March 26-31, 2019. ProMIS was able to showcase results demonstrating the selectivity of anti-alpha synuclein antibodies, which selectively bind to tox…



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Research – Dyadic (DYAI) – More deals appear likely.

Friday, May 10, 2019

Dyadic International (DYAI)

Putting Recent Developments Into Perspective.

Dyadic International Inc. is a biotechnology company developing a proprietary C1 expression platform to express and manufacture biologic products. The C1 technology is part of a fungi expression system, which utilizes inexpensive substrates yielding a high level of production. Dyadic is currently improving and optimizing the production of biological products in a C1 expression system. 

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

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

  • Positioned in a rapidly growing market. The biologics market remains one of the most rapidly growing segments of the pharmaceutical industry, expected to grow to $1.2 billion in sales in 2022. Dyadic has expanded its collaboration and licensing portfolio to assess C1’s potential to manufacture vaccines, gene therapy, monoclonal antibodies and others in human disease and in animal health.  
  • More deals appear likely. Following two recently announced licensing agreements for its C1 technology, management indicated on an investor call that more licensing agreements and research collaborations are likely. These agreements will potentially generate re… 




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Research – Trovagene (TROV) – First quarter 2019 update

Friday, May 10, 2019

Trovagene Inc. (TROV)

Data Rich Year Ahead.

TrovaGene Inc is a US-based life science company which focuses on the development and commercialization of a proprietary molecular genetic detection technology for use in pharmaceutical development, clinical research and medical testing across a variety of clinical disciplines, including oncology and virology. 

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

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

  • Demonstrated Clinical Activity in
    AML. 
    Trovagene is making progress in a Phase 1b/2 study of onvansertib in combination with standard-of-care chemotherapy in acute myeloid leukemia (AML). The company’s most recent presentation at the American Association for Cancer Research (AACR) demonstrated an 89% disease control rate (DCR) including one complete response (CR), and one incomplete blood recovery (iCR) in 12 AML patients. 
  • Progressing in Other Indications. The company continues advancement in other indications, including i) Phase 2 study in metastatic castration-Resistant Prostate Cancer (mCRPC); second arm is set to be initiated with reduced dosing sche… 






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Research – Dyadic (DYAI) – Another licensing agreement

Wednesday, May 8, 2019

Dyadic International (DYAI)

What Does Another Licensing Agreement Mean?

Dyadic International Inc. is a biotechnology company developing a proprietary C1 expression platform to express and manufacture biologic products. The C1 technology is part of a fungi expression system, which utilizes inexpensive substrates yielding a high level of production. Dyadic is currently improving and optimizing the production of biological products in a C1 expression system.

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

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

  • Second Sub-licensing Deal. Following a sub-licensing deal with Luina Bio announced on April 29, the company announced a second sub-licensing agreement with biotech company Alphazyme. Alphazyme produces molecular biology enzymes for the molecular tool industry including, custom DNA and RNA molecules, genomic medicines and genetic testing. Dyadic’s C1 technology platform meets Alphazyme’s requirements for high quality, low cost production of enzymes on an industrial scale.
  • Terms of the Deal. Dyadic will be granted an equity stake in Alphazyme,
    and is entitled to receive milestone payments and royalties upon the
    commercialization of C1 expressed Alphaz…


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News – Cell Cycle Regulators as Cancer Therapeutics

The Importance of CDKs (Cyclin-dependent kinases)

(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 listed in the “Balanced” section) 

Cell proliferation is a tightly regulated
process by the cell cycle machinery in normal tissues, while dysregulated
cellular proliferation and aberrant proliferation is a hallmark of cancer. Cyclin-dependent
kinases (CDKs) are critical regulatory enzymes that drive cell cycle
transitions, control cell division and proliferation. Many of the key concepts
of CDK biology were discovered over 20 years ago through the study of yeast
.
In 2001,
Doctor Leland H. Hartwell, R. Timothy
Hunt and Paul M. Nurse were awarded the
Nobel Prize
for their discoveries of “key regulators
of the cell cycle”.

There are currently >20 members of the CDK family. The cyclin D/cyclin-dependent kinases 4 and 6 (CDK4/6) are regulators of cell cycle and signal through cell cycle pathway involving p16, an endogenous suppressor of CDK4/6, cyclin D1, the regulatory subunit of CDK4/6, and retinoblastoma (Rb) protein, a tumor suppressor. Controlled phosphorylation and deactivation of the Rb protein by the CDK4/6 complex is crucial for the normal cell cycle progression. Unhindered activity of CDK4/6 pathway can result in alterations of cyclin-dependent kinases stimulating cell cycle pathway and cell proliferation in cancer cells. Selective CDK4/6 inhibitors “turn off” these kinases and dephosphorylation of Rb, resulting in a block of cell-cycle progression preventing the proliferation of cancer cells. 

Figure 1. Immune Mechanism in
Response to CDK4/6 Inhibitors

Source: AACR 2018

Research – electroCore (ECOR) – Initiation of Coverage

Wednesday, May 8, 2019

electroCore (ECOR)

Small Piece of Migraine Market Could be a Big Deal.

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 full report for price target, fundamental analysis and rating.

  • Market Opportunity. Upon establishment of reimbursement coverage, we expect to see a ramp up in revenue and further adoption in the market in H219. We believe potential approval in prevention of migraine and acute migraine treatment in adolescents to be a potential value generator, and the migraine indication to be the dominant market for electroCore.
  • Protraction in Commercialization. electroCore is engaging in multiple key aspects to foster commercialization by expanding the sales force, reimbursement coverage, as well as promotional and educational programs. We believe electroCor… 





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