GlycoMimetics Inc – (NASDAQ: GLYC)

GLYC is a clinical-stage biotechnology company with a focus on hematology-oncology. It is engaged in discovering as well as developing and commercializing novel, small-molecule glycomimetic product candidates for cancers, including acute myeloid leukemia (AML), and for inflammatory diseases with high unmet need. The company was incorporated in 2003 and is based in Rockville in Maryland, United States. The market capitalization stood at $102.05 million, at $1.98 per share.

Financial & Operational Highlights – On 4^th August 2021, the board of directors has appointed Harout Semerjian as chief executive officer, effective 6 August 2021. Mr. Semerjian has rich experience in oncology commercialization. On 22^nd July 2021, the clinical trial was launched to assess the company’s lead drug candidate, uproleselan, added to cladribine plus low dose cytarabine in patients with treated secondary AML. On the financial front, the company reported a decrease in its cash and cash equivalents to $118.9 million as of 30 June 2021 from $137.0 million as of 31 December 2020. The company’s R&D expenses rose to $10.2 million for the quarter ended 30 June 2021 from $9.9 million in the prior corresponding period. The revenue during H1FY21 declined substantially to $1.06 million from $9.00 million in H1FY20.

Weekly Technical Chart – GLYC

Source: REFINITIV

Note: The purple color line in the chart depicts RSI (14-period), while the yellow color line represents the trend line. The sky-blue and red color lines show 21-Period SMA and 50-Period SMA respectively, while green color histograms at the bottom of charts represent weekly volumes.

Technical Analysis – GLYC's prices are consolidating on lower levels with a negative bias and now approaching the major support level of US$1.82, a breakout of the same may further extend selling in the stock. On the weekly chart, the leading indicator RSI (14-period) is trading near to an oversold zone at ~34.86 levels and indicating a negative stance for the stock. The CMP is sustaining below the trend following indicators 21-period SMA and 50-period SMA; further supporting a downside trend. Now, an immediate resistance level for the stock appears at US$2.20.

Declining revenues, increasing net losses, reducing cash balances, and elevated stock prices, gives the stock an expensive valuation. Hence, we give an 'Avoid' rating on the stock at the closing price of $1.98 per share, down 2.46% as of 13^th August 2021.

Editas Medicine Inc – (NASDAQ: EDIT)

EDIT is a leading genome editing company. It emphasised utilising the power and potential of the gene editing systems in order to build a strong pipeline of medicines for treating people with serious diseases globally. It is also focused on discovering as well as developing, manufacturing, and commercialising transformative, durable, and precise genomic medicines for treating various diseases. The company was incorporated in 2013 and is based in Cambridge in Massachusetts, United States. The market capitalization stood at $4.28 billion, at $62.66 per share.

Financial & Operational Highlights – On 29^th July 2021, the company along with Integrated DNA Technologies, Inc. declared the publication of research data that represented the benefits of Alt-R™ A.s. Cas12a (Cpf1) Ultra, an engineered AsCas12a nuclease variant, as a tool to ultimately aid the development of gene-edited cell medicines. On 23^rd June 2021, the company declared the enrolment of the first pediatric cohort in the brilliance clinical trial of edit-101 for curing lca10 after the endorsement from the Independent Data Monitoring Committee (IDMC) to proceed. On the financial front, the company reported an increase in its net loss attributable to common stockholders to $55.3 million in Q2FY21 from $23.6 million in Q2FY20. The cash and cash equivalents, and marketable securities were reduced to $698.1 million as of 30 June 2021 from $723.2 million as of 31 March 2021.

Weekly Technical Chart – GLYC

Source: REFINITIV

Note: The purple color line in the chart depicts RSI (14-period), while the yellow color line represents the trend line. The sky-blue and red color lines show 21-Period SMA and 50-Period SMA respectively, while green color histograms at the bottom of charts represent weekly volumes.

Technical Analysis – EDIT's prices witnessed a sharp upside movement in the past 2 weeks and gained ~70.27% from the low of US$40.40 made on Aug 03, 2021. On the daily chart, prices broke an upward sloping trend line resistance level of US$65.00 on an upside but were unable to sustain above the breakout level, indicating the possibility of a downside correction. The leading indicator RSI (14-period) is in an overbought zone at ~73.88 levels and forming a negative divergence with the price action, further supporting a downside direction. However, the prices are trading above 21-period SMA and 50-period SMA; act as support levels for the stock. Now, an immediate resistance level for the stock appears at US$70.00 while support is at US$55 level.

Declining revenues along with rising net losses, reducing cash balances, and elevated stock prices, gives the stock an expensive valuation. Hence, we have an 'Expensive' stance on the stock at the closing price of $62.66, down 4.12% as of 13^th August 2021.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

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