Amicus Therapeutics, Inc.

FOLD Details

Amicus Therapeutics, Inc. (NASDAQ: FOLD) is a biotechnology firm focused on discovering, developing, and commercializing treatments for patients with rare metabolic disorders. Galafold (migalastat), the first authorized oral medication for people with Fabry disease, is presently being commercialized in the United States, the United Kingdom, the European Union (EU), and Japan. In addition, FOLD's pipeline includes gene therapy initiatives for uncommon neurologic lysosomal diseases (LDs), such as Batten disease, Pompe disease, Fabry disease, CDKL5 deficient disorder (CDD), Mucopolysaccharidosis Type IIIB (MPS IIIB), and a next-gen program for Mucopolysaccharidosis Type IIIA (MPS IIIA).

Approval for Galafold for Adolescents: Galafold was authorized by the European Commission on August 02, 2021, for use in 12 – 16-year-old children diagnosed with Fabry disease who have an amenable mutation and weigh more than 45 kgs. Galafold is currently not approved for use in young people outside Europe.

Early Access to AT-GAA: FOLD reported on June 08, 2021, that AT-GAA, a novel two-component medication for treating Pompe illness, received a favorable scientific opinion from UK's Medicines and Healthcare Products Regulatory Agency (MHRA) under the Early Access to Medicines Scheme (EAMS). Due to this positive judgment, eligible people with late-onset Pompe disease (LOPD) who have been using alglucosidase alfa for at least two years can now transition to AT-GAA before it is authorized in the UK.

H1FY21 Results: The company reported a 17.04% increase in net product sales to USD 143.82 million during H1FY21 (ended June 30, 2021) compared to USD 122.88 million during H1FY20, primarily due to continual growth in the US, Europe, and Japan markets. In addition, FOLD reported a decline in net loss attributable to common shareholders to USD 116.89 million during H1FY21 vs. USD 141.44 million during H1FY20. As of June 30, 2021, the company's cash balance (including investments in marketable securities) stood at USD 383.07 million, and total debt amounted to USD 390.43 million.

Key Risks: FOLD is primarily concerned with selling a single product (Galafold), and over-reliance on a single product may negatively influence the firm's financial strength if it fails to extend its product variety in the future, which generally takes time.

Outlook: As of August 05, 2021, FOLD expects its FY21 revenue from sales of Galafold to range between USD 300 million to USD 315 million, with non-GAAP operating expenses estimated to be around USD 410 million to USD 420 million. The firm also stated that it has enough liquidity to sustain itself without future dilutive financing.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

FOLD Daily Technical Chart (Source: REFINITIV)

Stock Recommendation: FOLD's share price has declined by 48.59% in the past nine months and is currently leaning towards the lower band of the 52-week range of USD 8.60 to USD 25.39. The stock is currently trading in between its 50 and 200 DMA levels, and its RSI Index is at 60.81. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 12.32. Considering the company's growth prospects, strong product pipeline, recent regulatory approvals, current valuation, and associated risks, we recommend a "Hold" rating on the stock at the current price of USD 11.34, down 0.35% as of September 08, 2021, at 12:02 PM ET.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

Paysign, Inc.

PAYS Details

Paysign, Inc. (NASDAQ: PAYS) is a payment solutions provider that offers prepaid card programs and processing services for corporate, consumer, and government institutions. PAYS markets its prepaid debit card solutions under its PaySign brand and has also developed a card processing platform comprising proprietary systems and software applications catering to the clients' specific demands. Its platform provides transaction processing, cardholder enrolment, value loading, cardholder account management, reporting, and customer care services.

Key Recruitments: On August 05, 2021, PAYS announced the appointment of Brad Cunningham as its Chief Technology Officer (CTO). Mr. Cunningham carries over 17 years of experience and is an expert in engineering high-availability payment systems with complex data analytics. Before joining PAYS, Mr. Cunningham was the senior vice president and managing director of IT Strategy & Services at Republic Bank & Trust Company. Concurrent with this recruitment, Alan Geiger and Richard Graub joined PAYS as Directors of Relationship Management and Product Management.

Q2FY21 Results: The company reported YoY growth of 3.23% in total revenue to USD 6.65 million in Q2FY21 (ended June 30, 2021) compared to USD 6.44 million in Q2FY20. The Plasma Industry, which accounted for 89.42% of the total revenue in Q2FY21, increased by 30.07% YoY, whereas the Pharma Industry reported a YoY decline of 63.75%. Net loss for the company increased to USD 0.93 million in Q2FY21 vs. USD 0.22 million in Q2FY20. As of June 30, 2021, the company had a cash balance of USD 6.62 million and no outstanding debt.

Key Risks: PAYS relies on third parties to undertake network connectivity and gateway services. Therefore, any discord with the third parties could harm operations and cash flows. In addition, PAYS operates in a highly competitive IT services industry and faces direct competition from more prominent players with higher financial and operational resources at their disposal. Hence, it must incur substantial expenses towards marketing and rewards programs to increase its sales and retain its customers. If the competition further intensifies or PAYS fails to manage its costs, its financials could be adversely impacted.

Outlook: In its Q2FY21 earnings report, PAYS stated that its FY21 revenue is expected to be in the range of USD 29.0 – 32.0 million, thus realizing YoY growth of 20% – 32%, along with an adjusted EBITDA to the tune of USD 0.75 – 1.90 million. PAYS also expects YoY growth of 790 bps in gross margin to 46.5% in FY21.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

PAYS Daily Technical Chart (Source: REFINITIV)

Stock Recommendation: PAYS share price fell 6.75% in the past month and has breached its previous 52-week range of USD 2.38 to USD 6.22. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 35.50. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 2.59. Considering the slight correction in the stock price, growth in topline, new leadership, current valuation, and associated risks, we recommend a "Hold" rating on the stock at the current price of USD 2.35, down 4.86% as of September 08, 2021, 11:49 AM ET.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

Document Security Systems, Inc.

DSS Details

Document Security Systems, Inc. (NYSE: DSS) is a global organization focused on blockchain security, direct marketing, medical services, consumer packaging, real estate, renewable energy, and securitized digital resources. It operates on a distribution sharing framework under which investors will get shares in its subsidiaries as they are spun off as separate public entities. As of September 08, 2021, its market capitalization stood at USD 86.52 million.

Equity Investment: On September 08, 2021, DSS announced an investment of USD 15 million by Alset EHome International, Inc., a developer of EHome communities. DSS will issue 12,155,591 common shares at an issue price of ~USD 1.234 per share in exchange for the investment.

Breakthrough Developments: On September 07, 2021, Impact BioMedical, Inc., a wholly-owned subsidiary of DSS, along with its research partner Global Research and Discovery Group Sciences (GRDG), announced the successful synthetization of their first Quantum-based compound. The synthesized compound, which boosts the body's response to the foreign antigen, has been sent to a large university for testing. This news follows the announcement of positive results from the clinical test of 3FDB (DEET Booster) on August 23, 2021. The results show that 3FDB can enhance the efficacy of mosquito repellents, especially DEET, and can aid in preventing mosquito-borne diseases.

Q2FY21 Results: The company reported YoY growth of 50.65% in total revenue to USD 4.19 million in Q2FY21 (ended June 30, 2021) compared to USD 2.78 million in Q2FY20. The Printed Products segment, which accounted for 80.67% of the total revenue in Q2FY21, increased by 48.59% YoY, whereas the Direct Marketing segment reported YoY growth of 59.88%. Net loss for the company increased to USD 8.42 million in Q2FY21 vs. USD 0.79 million in Q2FY20. As of June 30, 2021, the company's balance sheet stood with cash and cash equivalents of USD 65.65 million and total debt of USD 8.15 million.

Key Risks: In FY20, DSS's top two customers accounted for 38% and 60% of its total revenue and trade receivables, respectively. As a result, the loss of any of these critical customers could hurt its financials.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

DSS Daily Technical Chart (Source: REFINITIV)

Stock Recommendation: DSS's share price increased 4.44% in the past month and is currently leaning towards the lower-band of the 52-week range of USD 1.14 to USD 7.62. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 58.36. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 1.56. Considering the slight uptick in the stock price, a surge in topline, strategic investments, current valuation, and associated risks, we recommend a "Hold" rating on the stock at the closing price of USD 1.41, up 10.16% as of September 08, 2021.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

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