Fresh Tracks Therapeutics Inc.

Fresh Tracks Therapeutics (NASDAQ: FRTX) is a pharmaceutical company that develops differentiated prescription drugs to treat autoimmune, inflammatory, and other diseases. Their pipeline includes several new chemical entities that inhibit novel targets with first-in-class potential. Fresh Tracks also has a platform of next-generation DYRK, LRRK2, TTK, and CLK inhibitors.

Recent Financial and Business Updates:

• Second Quarter Income Statement Review:
  • Fresh Tracks reported a total revenue of USD 53,000 in Q2 2023, compared to USD4.315 million in Q2 2022.
  • The net loss attributable to common shareholders was USD2.284 million, compared to USD1.147 million in Q2 2022.
  • The net loss per common share, basic and diluted, was USD0.39.
  • In 2023, most of the company's revenue came from sublicensing income under the Asset Purchase Agreement with Botanix.
• Balance Sheet Review:
  • Fresh Tracks reported cash and cash equivalents of USD8.948 million as of June 30, 2023.
  • The total liabilities stood at USD1.85 million as of June 30, 2023.
  • Fresh Tracks reported total stockholders’ equity of USD7.99 million as of June 30, 2023.
• Completion of reverse stock split:
  • The company consolidated its outstanding shares of common stock on July 5, 2022.
  • Under the reverse stock split, 45 shares were consolidated into 1 share.
  • The per-share amounts for all other relevant balances and computations were also adjusted.
  • The adjusted amounts are reflected in the company's financial statements for all periods presented, from and after July 5, 2022.
• Fresh Tracks Therapeutics, Inc. has announced an amendment to its Asset Purchase Agreement with Botanix Pharmaceuticals Limited (ASX: BOT) and its subsidiary, Botanix SB Inc. This amendment involves the sale of Fresh Tracks' rights to future event-based milestone and earnout payments related to net sales of sofpironium bromide to Botanix SB Inc. for 8.25 million USD. In May 2022, Botanix acquired assets related to sofpironium bromide from Fresh Tracks. Under the APA Amendment, Botanix will make an 8.25 million USD cash payment, which covers all outstanding amounts owed to Fresh Tracks, with 6.60 million USD going to Fresh Tracks and the remaining 1.65 million USD to the Company's former licensor. Additional details can be found in the Current Report on Form 8-K filed by Fresh Tracks on July 21, 2023.

Technical Observation (on the daily chart)

Presently, the stock has corrected by approximately 80.89% since reaching its highest point in the past 52 weeks, which FRTX achieved on March 8, 2023. The Relative Strength Index (RSI) over a 14-day period stands at 42.30, indicating further consolidation in the near time future. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 13, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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