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3 Biotech Stocks Under $6 That Could More Than Double: Wedbush

3 Biotech Stocks Under $6 That Could More Than Double: Wedbush

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Take your eye off the ball, and you might have just missed a home run. Veteran players of the stock picking game know that biotechs are capable of delivering a win at what feels like the drop of a hat. How do they do it?

It comes down to the nature of the industry itself. Unlike names in other sectors, biotech companies rely on only a few key indicators like study results or regulatory approvals to determine whether or not sustainable revenues are on the horizon. As a result, a favorable outcome can act as a catalyst that sends shares flying out of the ballpark. For this reason, risk-tolerant investors flock to these stocks. However, biotech stocks are famous for being risky as the opposite also holds true.

This makes it difficult to separate the biotechs with massive growth prospects from those poised to strike out. Don’t worry, Wall Street analysts can lend a hand with that.

Turning to Wedbush analyst Liana Moussatos for guidance, we wanted to check out some of her recent picks in the biotech space to see if she could steer us towards any game-changers. After running the tickers through TipRanks’ database, we found out that three recently scored Buy ratings from the rest of the Street and sport triple-digit upside potential. 

Liquidia Technologies, Inc. (LQDA)

By leveraging its innovative PRINT technology, Liquidia wants to enhance the clinical profile of approved active pharmaceutical ingredients (APIs). Following its recent data readout, several analysts think this biotech is a long-term winner.

On April 30, the company published the final data set from the pivotal Phase 3 INSPIRE trial for its lead candidate, LIQ861, as a presentation on the International Society for Heart & Lung Transplantation virtual education platform (ISHLTv). The therapy is a dry powder formulation of inhaled treprostinil (reference drug TYVASO), and was designed for the treatment of Pulmonary Arterial Hypertension (PAH).

Based on the trial’s final analysis, the data was consistent with earlier results, with the asset exhibiting a robust safety profile in 121 patients. It should be noted that 113, or 93% of these patients, completed two months of treatment.

Calling LIQ861 “potentially best-in-class", Moussatos points out that it was evaluated across doses ranging from 26.5 mcg to 159 mcg, and no drug-related serious adverse events (SAEs) were witnessed. The implications? LQDA is progressing right on track, with the therapy’s PDUFA date in PAH slated for November 24, 2020.

Moussatos commented, “The NDA package included positive results from three clinical studies that highlight safety, tolerability and pharmacokinetics (PK) of LIQ861. Based on positive safety and efficacy data, we anticipate approval for LIQ861/PAH as highly likely and project potential U.S. approval on or before the November 24, 2020 PDUFA date, commercial U.S. launch in May 2021, and gross annual U.S. sales reaching over $660 million in 2027.”   

Along with her Outperform call, Moussatos left a $41 price target on this biotech stock. This implies shares could skyrocket 606% in the next twelve months. 

Like Moussatos, other analysts take a bullish approach when it comes to LQDA. With 100% Street support, the message is clear: the stock is a Strong Buy. At $37, the average price target puts the upside potential at 537%. (See Liquidia stock analysis on TipRanks)

ObsEva SA (OBSV)

Moving on to an entirely different segment of the biotech space, ObsEva develops treatments for women’s reproductive health, including Linzagolix for endometriosis and uterine fibroids (UF), and OBE022 for the prevention of premature labor. While shares have climbed 27% higher in the last month, Wedbush believes its growth story is nowhere near its conclusion.

With management stating that COVID-19 won’t delay the Phase 3 trials for Linzagolix in UF, PRIMROSE 1 and PRIMROSE 2, Moussatos tells investors that OBSV is “on-track to report Linzagolix/UF primary endpoint results following 24 weeks of treatment from the PRIMROSE 1 trial and the 52 weeks of treatment results from the PRIMROSE 2 trial.”

In both of these trials, the company wants to demonstrate that both a 100mg once daily dose of Linzagolix without hormonal add-back therapy (ABT) and a 200mg once daily dose with ABT are effective and safe. It should also be noted that the primary endpoint of the PRIMROSE trials is response rate, which will be determined by the reduction in heavy menstrual bleeding (HMB) due to UF.

Speaking to the probability of success, Moussatos points out that in December 2019, the company published strong top-line data from the PRIMROSE 2 study, with the therapy meeting the 24-week primary endpoint, menstrual blood loss of less than 80 mL and equal to or greater than a 50% decrease from the baseline. It also exhibited a 93.9% responder rate for 200 mg with ABT and a 56.7% responder rate for 100 mg without ABT. Not to mention it met multiple important secondary endpoints including a drop in pain.

As a result, Moussatos thinks that the primary endpoint readout for the PRIMROSE 1 study will most likely be positive. She added, “ObsEva plans to submit an MAA and NDA for UF by year end 2020 and first half of 2021, respectively. Of note, ObsEva is engaged in discussion with commercial partners for Linzagolix and we anticipate a potential announcement in 2020. We project gross annual sales of more than $800 million in 2026 for UF.”

Based on all of the above, Moussatos left an Outperform rating on OBSV shares along with a $30 price target, which leaves room for a whopping 949% potential twelve-month gain.

Turning now to the rest of the Street, other analysts are in agreement. Only Buy ratings, 3 to be exact, have been received in the last three months, so the biotech stock gets a Strong Buy consensus rating. Should the $23.67 average price target be met, shares could soar 728% in the next year. (See ObsEva stock analysis on TipRanks)

Catabasis Pharmaceuticals (CATB)

Last up to bat, we have Catabasis Pharmaceuticals, which focuses on developing treatments for rare diseases. Even though it has already posted an impressive 49% one-month gain, if you ask Wedbush, there’s still plenty of fuel left in the tank.

For Moussatos, the key value driver is CATB’s lead asset, edasalonexent, a first-in-class oral NF-kB inhibitor for the treatment of Duchenne Muscular Dystrophy (DMD). Management revealed on April 17 that it would be conducting a series of presentations on Phase 3 PolarisDMD baseline characteristics and edasalonexent compliance at the 2020 Muscular Dystrophy Association Virtual Poster Session. After this, the analyst believes top-line results from the global Phase 3 PolarisDMD trial, which are slated for release in Q4 2020, will serve as a major catalyst for shares. Not to mention positive data could open the door for a potential NDA submission in the first half of 2021.

Looking at the trial specifically, the patients enrolled in Phase 3 PolarisDMD exhibited similar baseline characteristics to the participants in the Phase 2 MoveDMD study. This is important because during Phase 2, treatment with edasalonexent was well tolerated and demonstrated optimal growth patterns.

On top of this, edasalonexent soft-gel capsules did not reduce compliance, which landed at 98%. Also noteworthy, in both Phase 2 MoveDMD and Phase 3 PolarisDMD, patients could swallow soft-gel capsules.

All of this prompted Moussatos to comment, “Based on robust Phase 2 safety and efficacy data, we anticipate positive results from PolarisDMD trial in Q4 2020. The Company also initiated an open-label extension trial (GalaxyDMD) designed to provide long-term safety results to support the NDA filing.”

As Moussatos estimates CATB’s cash runway will last until Q3 2021 and that gross edasalonexent sales will exceed $500 million in 2025, it’s no wonder she is optimistic. To this end, the analyst reiterated an Outperform rating and $15 price target, suggesting 152% upside potential.

Judging by the consensus breakdown, it has been relatively quiet when it comes to other analyst activity. Only one other review was published recently, but it was also bullish. Therefore, CATB earns a Moderate Buy consensus rating. The $37.50 average price target is more aggressive than Moussatos’ and implies 530% upside potential. (See Catabasis stock analysis on TipRanks

The post 3 Biotech Stocks Under $6 That Could More Than Double: Wedbush appeared first on TipRanks Financial Blog.

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The Coming Of The Police State In America

The Coming Of The Police State In America

Authored by Jeffrey Tucker via The Epoch Times,

The National Guard and the State Police are now…

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The Coming Of The Police State In America

Authored by Jeffrey Tucker via The Epoch Times,

The National Guard and the State Police are now patrolling the New York City subway system in an attempt to do something about the explosion of crime. As part of this, there are bag checks and new surveillance of all passengers. No legislation, no debate, just an edict from the mayor.

Many citizens who rely on this system for transportation might welcome this. It’s a city of strict gun control, and no one knows for sure if they have the right to defend themselves. Merchants have been harassed and even arrested for trying to stop looting and pillaging in their own shops.

The message has been sent: Only the police can do this job. Whether they do it or not is another matter.

Things on the subway system have gotten crazy. If you know it well, you can manage to travel safely, but visitors to the city who take the wrong train at the wrong time are taking grave risks.

In actual fact, it’s guaranteed that this will only end in confiscating knives and other things that people carry in order to protect themselves while leaving the actual criminals even more free to prey on citizens.

The law-abiding will suffer and the criminals will grow more numerous. It will not end well.

When you step back from the details, what we have is the dawning of a genuine police state in the United States. It only starts in New York City. Where is the Guard going to be deployed next? Anywhere is possible.

If the crime is bad enough, citizens will welcome it. It must have been this way in most times and places that when the police state arrives, the people cheer.

We will all have our own stories of how this came to be. Some might begin with the passage of the Patriot Act and the establishment of the Department of Homeland Security in 2001. Some will focus on gun control and the taking away of citizens’ rights to defend themselves.

My own version of events is closer in time. It began four years ago this month with lockdowns. That’s what shattered the capacity of civil society to function in the United States. Everything that has happened since follows like one domino tumbling after another.

It goes like this:

1) lockdown,

2) loss of moral compass and spreading of loneliness and nihilism,

3) rioting resulting from citizen frustration, 4) police absent because of ideological hectoring,

5) a rise in uncontrolled immigration/refugees,

6) an epidemic of ill health from substance abuse and otherwise,

7) businesses flee the city

8) cities fall into decay, and that results in

9) more surveillance and police state.

The 10th stage is the sacking of liberty and civilization itself.

It doesn’t fall out this way at every point in history, but this seems like a solid outline of what happened in this case. Four years is a very short period of time to see all of this unfold. But it is a fact that New York City was more-or-less civilized only four years ago. No one could have predicted that it would come to this so quickly.

But once the lockdowns happened, all bets were off. Here we had a policy that most directly trampled on all freedoms that we had taken for granted. Schools, businesses, and churches were slammed shut, with various levels of enforcement. The entire workforce was divided between essential and nonessential, and there was widespread confusion about who precisely was in charge of designating and enforcing this.

It felt like martial law at the time, as if all normal civilian law had been displaced by something else. That something had to do with public health, but there was clearly more going on, because suddenly our social media posts were censored and we were being asked to do things that made no sense, such as mask up for a virus that evaded mask protection and walk in only one direction in grocery aisles.

Vast amounts of the white-collar workforce stayed home—and their kids, too—until it became too much to bear. The city became a ghost town. Most U.S. cities were the same.

As the months of disaster rolled on, the captives were let out of their houses for the summer in order to protest racism but no other reason. As a way of excusing this, the same public health authorities said that racism was a virus as bad as COVID-19, so therefore it was permitted.

The protests had turned to riots in many cities, and the police were being defunded and discouraged to do anything about the problem. Citizens watched in horror as downtowns burned and drug-crazed freaks took over whole sections of cities. It was like every standard of decency had been zapped out of an entire swath of the population.

Meanwhile, large checks were arriving in people’s bank accounts, defying every normal economic expectation. How could people not be working and get their bank accounts more flush with cash than ever? There was a new law that didn’t even require that people pay rent. How weird was that? Even student loans didn’t need to be paid.

By the fall, recess from lockdown was over and everyone was told to go home again. But this time they had a job to do: They were supposed to vote. Not at the polling places, because going there would only spread germs, or so the media said. When the voting results finally came in, it was the absentee ballots that swung the election in favor of the opposition party that actually wanted more lockdowns and eventually pushed vaccine mandates on the whole population.

The new party in control took note of the large population movements out of cities and states that they controlled. This would have a large effect on voting patterns in the future. But they had a plan. They would open the borders to millions of people in the guise of caring for refugees. These new warm bodies would become voters in time and certainly count on the census when it came time to reapportion political power.

Meanwhile, the native population had begun to swim in ill health from substance abuse, widespread depression, and demoralization, plus vaccine injury. This increased dependency on the very institutions that had caused the problem in the first place: the medical/scientific establishment.

The rise of crime drove the small businesses out of the city. They had barely survived the lockdowns, but they certainly could not survive the crime epidemic. This undermined the tax base of the city and allowed the criminals to take further control.

The same cities became sanctuaries for the waves of migrants sacking the country, and partisan mayors actually used tax dollars to house these invaders in high-end hotels in the name of having compassion for the stranger. Citizens were pushed out to make way for rampaging migrant hordes, as incredible as this seems.

But with that, of course, crime rose ever further, inciting citizen anger and providing a pretext to bring in the police state in the form of the National Guard, now tasked with cracking down on crime in the transportation system.

What’s the next step? It’s probably already here: mass surveillance and censorship, plus ever-expanding police power. This will be accompanied by further population movements, as those with the means to do so flee the city and even the country and leave it for everyone else to suffer.

As I tell the story, all of this seems inevitable. It is not. It could have been stopped at any point. A wise and prudent political leadership could have admitted the error from the beginning and called on the country to rediscover freedom, decency, and the difference between right and wrong. But ego and pride stopped that from happening, and we are left with the consequences.

The government grows ever bigger and civil society ever less capable of managing itself in large urban centers. Disaster is unfolding in real time, mitigated only by a rising stock market and a financial system that has yet to fall apart completely.

Are we at the middle stages of total collapse, or at the point where the population and people in leadership positions wise up and decide to put an end to the downward slide? It’s hard to know. But this much we do know: There is a growing pocket of resistance out there that is fed up and refuses to sit by and watch this great country be sacked and taken over by everything it was set up to prevent.

Tyler Durden Sat, 03/09/2024 - 16:20

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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