JOSE LUIS CALVO MARTIN & JOSE ENRIQUE GARCIA-MAURIÑO MUZQUIZ/iStock via Getty Images EQUITY RESEARCH | SPECIALTY PHARMACEUTICALS Grace Therapeutics, Inc. ( GRCE ) Initiating Coverage Item Value Rating SPECULATIVE BUY Price Target $4.00 (scenario-weighted) Current Price $2.54 Implied Upside +57% Strategy Bucket Crisis Alpha, Event-Driven Post CRL Click to enlarge Data by YCharts I. Executive Summar...
JOSE LUIS CALVO MARTIN & JOSE ENRIQUE GARCIA-MAURIÑO MUZQUIZ/iStock via Getty Images EQUITY RESEARCH | SPECIALTY PHARMACEUTICALS Grace Therapeutics, Inc. ( GRCE ) Initiating Coverage Item Value Rating SPECULATIVE BUY Price Target $4.00 (scenario-weighted) Current Price $2.54 Implied Upside +57% Strategy Bucket Crisis Alpha, Event-Driven Post CRL Click to enlarge Data by YCharts I. Executive Summary Pricing a Clinical Failure That Didn't Happen Grace Therapeutics dropped 45% recently after the FDA issued a CRL for GTx-104, its intravenous formulation for treating aneurysmal subarachnoid hemorrhage (aSAH). The stock has now been rebounding for the past few days. The market seems to be pricing in total failure of this product candidate, but the FDA only raised fixable issues related to Chemistry, Manufacturing, and Controls (CMC), like leachables data for product packaging, non-clinical toxicology risk assessments, and manufacturing concerns at the contract manufacturer, and did not raise any concerns about efficacy or safety. The company is requesting a Type A meeting with the FDA to discuss CRL issues. Based on the historical data about CMC-related CRLs and unmet need in SAH, we assign a 75% probability that the repeat New Drug Application (NDA) will be accepted. Based on scenario-weighted discounted cash flow valuation, we assign a $4 price target or 57% upside. II. The Asset: GTx-104 Fulfilling An Unmet Need Nimodipine, a vasodilator, is used in aSAH patients to prevent delayed cerebral ischemia due to vasospasm. The oral version of this drug has poor bioavailability, and only 3-30% of it is absorbed in aSAH patients. It also has poor compliance in the real world, and only 17% of patients received the scheduled doses in a series. Poor compliance is associated with delayed discharge to home. Intravenous formulations of nimodipine are available in countries like the EU, the UK, China, etc. However, the FDA has not approved this formulation (Nimotop) for use internati...
Over the weekend, investor Michael Burry questioned the financial plumbing behind the artificial intelligence boom, arguing that complex financing arrangements may be masking how billions of dollars worth of Nvidia Corp (NASDAQ:NVDA) GPUs are funded and held across balance sheets. Michael Burry Calls Nvidia AI Boom ‘Fugazi' Burry, known for predicting the 2008 housing crash, pushed back against op...
Over the weekend, investor Michael Burry questioned the financial plumbing behind the artificial intelligence boom, arguing that complex financing arrangements may be masking how billions of dollars worth of Nvidia Corp (NASDAQ:NVDA) GPUs are funded and held across balance sheets. Michael Burry Calls Nvidia AI Boom ‘Fugazi' Burry, known for predicting the 2008 housing crash, pushed back against optimism around Nvidia after CNBC's Jim Cramer said the chipmaker remained a winner despite the stock
NVIDIA (NASDAQ: NVDA) has announced a plan to do the unimaginable, particularly going back a year ago. It plans to put AI chips in almost every PC on the market. In the meantime, it could deliver a crushing blow to AMD and Intel (NASDAQ: INTC), which currently dominate this business. The NVIDIA RTX Spark will ... Nvidia Plans To Take Control Of The PC Market
NVIDIA (NASDAQ: NVDA) has announced a plan to do the unimaginable, particularly going back a year ago. It plans to put AI chips in almost every PC on the market. In the meantime, it could deliver a crushing blow to AMD and Intel (NASDAQ: INTC), which currently dominate this business. The NVIDIA RTX Spark will ... Nvidia Plans To Take Control Of The PC Market
In this article US10Y US2Y US30Y @CL.1 @LCO.1 Follow your favorite stocks CREATE FREE ACCOUNT U.S. Treasury yields rose on Monday after the U.S. and Iran again exchanged military strikes, further clouding the prospects for a deal to end the conflict. The 10-year Treasury yield— the key benchmark for mortgages, auto loans and credit card debt — was up more than 1 basis point in early trade at 4.472...
In this article US10Y US2Y US30Y @CL.1 @LCO.1 Follow your favorite stocks CREATE FREE ACCOUNT U.S. Treasury yields rose on Monday after the U.S. and Iran again exchanged military strikes, further clouding the prospects for a deal to end the conflict. The 10-year Treasury yield— the key benchmark for mortgages, auto loans and credit card debt — was up more than 1 basis point in early trade at 4.4729%. Yields on the 2-year Treasury note, which often move in reaction to short-term Federal Reserve rate decisions, were more than 2 basis points higher, at 4.0390%. The 30-year bond yield, meanwhile, held steady at 4.9958%. One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another. Borrowing costs edged higher after U.S. and Iranian air strikes over the weekend, with each side exchanging fire close to the strategically important Strait of Hormuz shipping channel. Bond yields had steadied on Friday as traders closed out the month with an eye on geopolitical developments, amid signs that the U.S. and Iran were nearing a ceasefire extension. But fresh uncertainty over the direction of the conflict pushed oil prices higher on the first day of June. Prices of West Texas Intermediate futures jumped more than 4% to $90.92% early Monday, while Brent crude , the international oil price benchmark, was up 3.6% at $94.37. Later, the Institute for Supply Management will release its latest manufacturing index for May, as investors continue to probe data for signs of rising costs within the U.S. economy. The ISM's manufacturing PMI is expected to come in at 53, according to consensus forecasts, up from April's 52.7 print, which itself was unchanged from March — the highest level since April 2022. Elsewhere, former Federal Reserve chair Jerome Powell warned in a speech that moves by the Trump administration to push the central bank towards lower interest rates risk damaging the public's faith in the institution's independence. Choose CNBC as your p...