Morphic Holding Inc.

Morphic Holding Inc. (NASDAQ: MORF) operates in the biopharmaceutical industry. The company is developing an oral small molecule integrin therapeutic pipeline for the treatment of major chronic illnesses such as autoimmune, cardiovascular, and metabolic disorders, fibrosis, and cancer.

Key Highlights

• The company's net loss for the year ending December 31, 2021, was $95.5 million, or $2.67 per share, up from $45.0 million, or $1.47 per share, the prior year.
• The revenue for the year ended December 31, 2021, was $19.8 million, compared to $44.9 million for the year ended December 31, 2020. The drop was mostly due to AbbVie's $20 million option exercised on the company's integrin inhibitor program in the third quarter of 2020.
• For the fiscal year ending December 31, 2021, research and development costs were $87.8 million, up from $73.6 million the previous year. Increased manufacturing and research expenditures, as well as higher preclinical and clinical trial costs, contributed to the rise in support of the company's primary product candidate MORF-057.
• For the year ended December 31, 2021, general and administrative costs were $27.8 million, compared to $18.5 million YoY. The rise was attributable to greater professional and consulting expenditures connected with ongoing business growth operations and Morphic's status as a public company, as well as new hirings.
• Morphic had $408.1 million in cash, cash equivalents, and marketable securities as of December 31, 2021, compared to $228.3 million as of December 31, 2020. Morphic anticipates that as of December 31, 2021, its cash, cash equivalents, and marketable securities will be adequate to pay operational and capital expenditure obligations until the end of 2024.
• A bearish indicator is that the stock is now trading below its critical short-term (50-day) and long-term (200-day) SMA support levels. The stock is now trading towards the bottom of its 52-week range of USD 28.53 to USD 68.75. In the last six and twelve months, the stock price of OOMA has dropped 55.29 % and 45.37 %, respectively.

One-year technical Price Chart (as of 29 April 2022, at 8:50 am PDT). Analysis by Kalkine

Conclusion

Morphic Holding Inc. is an early staged loss-making biopharmaceutical company that must generate green numbers by the end of 2024, till its cash lasts for operational and capital expenditure. Price has taken support around USD 29, if not broken downwards in upcoming weeks, can provide bullish momentum.
Given the stock's considerable price fluctuation over the last year, financial results, and technical analysis, we propose a "Watch" rating on the stock at its current price of USD 30.46 on April 29, 2022, at 8:50 am PDT.

Technical Analysis Summary

* Current price as of April 29, 2022, at 08:50 am PDT

Investors 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. 

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and a 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.

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

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 the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.

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