Stocks’ Details

G1 Therapeutics, Inc.

Quarterly Highlights (For the Period Ended 30 September 2020): G1 Therapeutics, Inc. (NASDAQ: GTHX) is a clinical-stage biopharmaceutical company, which is focused on the development and delivery of next-generation therapies that improve the lives of cancer patients. As on 1 December 2020, the market capitalization of the company stood at ~$707.65 million. During the September 2020 quarter, the company reported positive data from three clinical trials, which showed the myelopreservation benefits of trilaciclib in patients and the treatment of SCLC with chemotherapy. Over the period, the company reported license revenue of $26.6 million from license agreements from EQRx, Inc. and Genor Biopharma, Inc. During the quarter, the company’s operating expenses stood at $36.3 million, up from $34.0 million in the third quarter of 2019. In the same time span, G1 reported a decline in net loss to $11.7 million from $32.36 million in 3QFY19.

Quarterly Financial Highlights (Source: Company Reports)

Outlook and Guidance: The company has upgraded its cash and cash equivalents guidance and expects cash and cash equivalents of $200 million -$205 million by the end of 2020, reflecting an increase from previous guidance of $185 million -$200 million. The company has also initiated phase 3 trilaciclib metastatic colorectal cancer clinical trial.

Stock Recommendation: At the end of the quarter, the company reported a cash balance of $238.3 million. As per NASDAQ, the stock of GTHX is inclined towards its 52-weeks’ low levels of $8.8, proffering a decent opportunity for the investors to enter the market. The stock of GTHX gave a return of 23.58% in the past three months and a return of 69.24% in the last one month. On a technical front, the stock of GTHX has a support level of ~$12.72 and a resistance level of ~$24.76. On a TTM basis, the stock of GTHX is trading at an EV/Sales multiple of 16.2x, lower than the industry median (Biotechnology & Medical Research) of 21.4x, and thus seems undervalued. Considering the current trading levels, falling losses, incurring of license revenue, and key investment risks, we recommend a ‘Speculative Buy’ rating on the stock at the current market price of $18.60, up by 1.86% on 1 December 2020.

Kezar Life Sciences, Inc.

Quarterly Highlights (For the Period Ended 30 September 2020): Kezar Life Sciences, Inc. (NASDAQ: KZR) is engaged in the development of breakthrough treatments for immune-mediated and oncologic disorders. As on 1 December 2020, the market capitalization of the company stood at ~$303.05 million. During the quarter ended 30 September 2020, the company incurred R&D expenses of $8.3 million, reflecting an increase of $1.2 million from $7.1 million in the third quarter of 2019. This was mainly due to the advancing the KZR-616 clinical program and the protein secretion preclinical program. At the end of the same period, the company incurred a loss of $11.3 million compared to a net loss of $9.1 million in the pcp.

Quarterly Financial Highlights (Source: Company Reports)

Clinical Highlights & Updates: In October 2020, the company’s KZR-616 were granted Orphan Drug Designations for the treatment of dermatomyositis and polymyositis by the US FDA. KZR-261 has shown anti-tumor activity in pre-clinical models of both hematologic and solid malignancies.

Stock Recommendation: As per NASDAQ, the stock of KZR is inclined towards its 52-weeks’ high levels of $9.79 and thus retains limited potential for upside. The stock of KZR gave a return of 40.55% in the past three months and a return of 27.92% in the last one month. On a technical front, the stock of KZR has a support level of ~$4.12 and a resistance level of ~$7.78. Considering the current trading levels, softer market conditions, rising losses, and key investment risks, we suggest our investors to keep an eye on the business activities and recommend an ‘Avoid’ rating on the stock at the current market price of $6.55, down by 0.46% on 1 December 2020.

Titan Pharmaceuticals, Inc.

Reverse Stock Split: Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) is engaged in developing proprietary therapeutics with its drug delivery technology, ProNeura®. As on 1 December 2020, the market capitalization of the company stood at ~$24.66 million. The company has recently announced a 1-for-30 reverse stock split of its common stock with effect from 30 November 2020. As a result, every 30 shares issued will be combined and converted into one issued stock, par value $0.001 per share. Post the completion of the stock split, there will be ~6.6 million outstanding shares. The shares will begin trading on a split-adjusted basis on 1 December 2020.

Quarterly Highlights (For the Period Ended 30 September 2020): During the third quarter ended 30 September 2020, the company completed a public offering with net cash proceeds of ~$5.7 million. At the end of the same period, the company reported revenue of $1.1 million, inclusive of $0.1 million in product sales and ~$1.0 million related to National Institute on Drug Abuse grant. Total operating expenses for the third quarter of 2020 were ~$5.8 million, reflecting an increase from ~$4.8 million from the same quarter in 2019. This resulted in an increase in loss to $4.9 million compared with a net loss of ~$2.8 million in the pcp. As of September 30, 2020, Titan had a cash balance of ~$4.1 million.

Quarterly Financial Highlights (Source: Company Reports)

Stock Recommendation: The company is focused on restructuring itself to take a better position for future growth. The stock of TTNP gave a negative return of 41.07% in the past three months and a negative return of 10.66% in the last one month. On a technical front, the stock of TTNP has a support level of ~$2.1 and a resistance level of ~$4.0. Considering the rising losses, falling product revenue, volatile market conditions, and key investment risks, we suggest our investors to keep an eye on the business activities and recommend an ‘Avoid’ rating on the stock at the current market price of $3.76, down by 26.28% on 1 December 2020, owing to the recent stock split.  

Daily Comparative Chart (Source: Refinitiv, Thomson Reuters)

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