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ABUS Stock: Arbutus Shares Spike After Court Decision, What’s Next?

Following a decision from the U.S Patent & Trademark Office, shares of ABUS stock soared over 90%. So, what’s next for the stock? Let’s check it out.
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Following a decision from the U.S Patent & Trademark Office, shares of Arbutus Biopharma Corp (Nasdaq: ABUS) stock soar over 90%. But with the broader market selling off, what’s next for the biopharma company?

ABUS  is in its clinical stage, focusing on developing treatments for hepatitis B (HBV). So far, the company has a strong pipeline of products for HBV and a new therapy for COVID-19.

With this in mind, its biggest claim to fame is its drug delivery technology. In fact, the technology is being used to deliver Moderna’s (Nasdaq: MRNA) COVID-19 vaccine. Yet, the vaccine maker doesn’t believe it should pay royalties for using it.

However, a recent court decision could help Arbutus collect what is owed to them. That said, what’s next for ABUS stock? Let’s check it out.

Why ABUS Stock Is Trending

The recent court ruling in favor of Arbutus can be huge news for the bio firm. For one thing, it means the company’s patents protect its valuable technology. And secondly, it gives ABUS the ability to sue Moderna for royalties.

If the company goes through with the lawsuit, Moderna may need to pay royalties for its COVID-19 vaccine. Nonetheless, the drug delivery system is critical for the vaccine to work properly. In particular, lipid technology helps carry the drugs through the bloodstream, leading to better absorption.

Evidently, investors were happy to hear the news as ABUS stock nearly doubled the day of the decision. Since last week, however, ABUS stock is giving back some of the gains, now +14% in the past five days.

On the other hand, Moderna stock is down over 25% during this time.

How This Affects ABUS Stock

Depending on what happens next, the decision to uphold the patents can provide plenty of upside for Arbutus. For one, it may give them the right to receive a portion of Moderna’s vaccine sales.

Genevant Sciences holds exclusive rights to the lipid nanoparticle technology. With this in mind, Arbutus owns around 16% of the company’s rights to license these patents.

So far, vaccine sales are driving Moderna to new heights. It’s had incredible revenue growth over the past four quarters.

The vaccine is a huge moneymaker for the biotech company. Not only that, but Moderna’s stock is up 130% during this time.

If Arbutus can snag a portion of these sales, it has the potential to boost revenue further. Even a small percent of the vaccine sales will be substantial for the company that relies on licensing as a significant part of its business model.

Analyzing ABUS Stock

The recent ABUS stock news caused a brief rally in share price. But, ABUS shares are fading back to where they were previously. Even more, the stock has struggled all year, down about 8%.

Another key point to consider is that Arbutus is still a clinical-stage company. Meaning the company’s products are still being researched and developed. If the company can gain a royalty stream from vaccine sales, it will give them reliable cash flow to grow.

After all, the company’s main focus is to cure HBV, which affects over 350 million people globally. While this may be true, ABUS stock has been relatively quiet despite the recent jump in share price.

Technical Analysis

Since last summer, ABUS is trading in a range between $2.5-$5. Following the recent spike in share price, the RSI Index was signaling oversold with readings +70.

Now that prices have cooled off a bit, ABUS stock could be setting up for another run with trading volume increasing. But, this could also be taken as a sign of selling into the rally. Still, with the company progressing on its HBV pipeline and winning royalty rights, it should help its value.

Fundamental Analysis

It’s often difficult to value a clinical-stage bio company. But, it’s especially tough when royalties are involved. First, you don’t know how well the market will react to the drug. And, more importantly, how much sales it will generate.

With this in mind, the company is addressing a massive HBV market. So far, the company has four HBV drugs in its pipeline, along with one coronavirus treatment in the works.

The bio firm’s third-quarter earnings show it’s progressing on its pipeline, with its first patient using AB-729 drug in trials. That said, here are the highlights from the report:

  • Net Loss of $24.2 million.
  • Cash & Equivalents totaling $151 million.
  • Operating Expenses reached $16.3, compared to $12 million in Q3 2020.

All in all, the company expects its cash will be able to fund them through Q2 2023.

Is It Time to Buy ABUS Stock?

All things considered, ABUS stock has a big opportunity ahead of it. With its patent holding up in court, the company is looking to sue Moderna for royalties.

Not only that but the global HBV market is set to grow 30% annually, reaching +$35 billion by 2030. If everything goes according to plan, Arbutus should play a critical role in treating the disease. The company is developing a combination of products designed to:

  • Reduce surface antigen
  • Suppress viral replication
  • And boost the immune system.

As the company passes its drugs through the clinical pipeline, we’ll see a clearer picture of how big of a role the company will play. At any rate, the new ruling will help the firm’s long-term prospects. With the CDC extending eligibility for COVID-19 booster shots to everyone, we may see more of Arbutus’s technology being used.

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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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Walmart joins Costco in sharing key pricing news

The massive retailers have both shared information that some retailers keep very close to the vest.

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As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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Walmart has really good news for shoppers (and Joe Biden)

The giant retailer joins Costco in making a statement that has political overtones, even if that’s not the intent.

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As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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