RepliCel Life Sciences Inc (TSXV:RP)
RepliCel is a regenerative medicine company developing autologous cell therapies that address diseases caused by a deficit of healthy cells required for normal healing and function.
Gilead Sciences (GILD -1.7%) has completed its rolling marketing application to the FDA seeking full approval of Veklury (remdesivir) for the treatment of severely ill hospitalized COVID-19 patients. It initiated the process on April 8.
The FDA approved the emergency use of the antiviral for these patients on May 1. It remains the only medicine to receive the nod in the U.S. to date. It is also available in Europe, Japan, India, Australia and Canada.
ICU Medical (NASDAQ:ICUI) has entered into a long-term agreement with Grifols to distribute non-PVC/non-DEHP IV containers for 0.9% Sodium Chloride Injection, USP in the U.S.
The new agreement will expand ICU Medical’s non-PVC/non-DEHP offering to include 50 mL to 1000 mL container sizes; additionally, the company plans to distribute Grifols’ Dextrose IV solutions after regulatory clearance in the U.S.
The company also announced Q2 earnings beat consensus, and Vivek Jain, ICU Medical’s Chief Executive Officer, said, “Second quarter results were generally in line with our expectations and reflected strong demand for our infusion pumps due to the COVID-19 pandemic.”
Shares are up 9% AH.
Ligand Pharmaceuticals (NASDAQ:LGND) has agreed to acquire Pfenex (NYSEMKT:PFNX) at $12/share, equivalent to $438M in equity value, representing a 57% premium to Pfenex’s last close price of $7.66 on August 10.
Additionally, Ligand will pay $2 per share or $78M as a Contingent Value Right in the event a predefined regulatory milestone is achieved by December 31, 2021.
The acquisition is expected to complete by next quarter as well as expand Ligand’s technology offerings by adding a proprietary protein expression technology platform.
Ligand expects the transaction will be modestly dilutive to 2020 adjusted diluted EPS, will provide $0.10 to $0.30 of adjusted diluted EPS accretion in 2021, and will provide significant annual adjusted diluted EPS accretion thereafter with current forecast of $0.60 to $0.80 in 2022 and $1.25 to $1.50 in 2023.
(PFNX) shares are up 59% and (LGND) shares were down 0.73% in AH
Novavax (NASDAQ:NVAX) Q2 results:
Revenue: $35.5M (+999%) from CEPI agreement.
Net loss: ($17.5M); loss/share: ($0.30).
Cash and equivalents at quarter-end: $424.4M (+438.6%).
Secured $2B in funding to support development and commercialization of COVID-19 vaccine candidate NVX-CoV2373.
Shares up 1% after hours.
Novavax EPS beats by $0.23, beats on revenue
Sorrento Therapeutics (SRNE +23.6%) is adding to its recent breakout on almost double normal volume. Shares have jumped 159% since Wednesday, July 24, when it announced that it planned to acquire COVID-19 therapy developer SmartPharm Therapeutics. The following Monday, July 29, it announced that it in-licensed rights to a rapid test that detects the presence of the SARS-CoV-2 virus in saliva in as little as 30 minutes.
On Friday, May 15, shares rocketed 158% after the company announced a “cure” for COVID-19. Shares quickly retraced on questions about the veracity of its claim, bottoming at $3.82 on June 4. Investors appeared to have brushed off such concerns since shares are up five-fold since then.
Chairman, CEO and President Henry Li, Ph.D. is, no doubt, pleased with the share appreciation. Last week, the board authorized a 10-year performance award for him based solely on the market cap of the company. He will earn options to purchase up to ~24.9M shares at $17.30 representing a 10% stake in the company if fully exercised. The award vests in 10 equal tranches starting with ~2.5M options if the company’s market cap reaches $5B. The 10th and last tranche vests if the company’s value hits $35B. Assuming full vestment and no further equity offerings, his total award will be potentially worth ~$3.3B.
SA Authors are Neutral while Wall Street sell-sides are Bullish. The Quant rating is Very Bullish.
