Biotech Bulls: three skyrocketing stocks after earnings week
Welcome back everyone! Today I’ll be discussing what this ‘science I’m investing in’ is exactly. We’ll be covering 3 biotech stocks I own and their recent scientific achievements!
Intellia Therapeutics Inc: NTLA + 22.3% past week
Intellia is researching CRISPR/cas9 gene editing technologies to treat a range of genetic and acquired diseases. Last Thursday, the company surpassed analyst expectations by reporting an impressive 12% year-over-year increase in revenue, with a loss per share of $(1.17), beating the consensus of $(1.40).
Furthermore, the clinical progress of gene therapies called NTLA-2001 and NTLA-2002 is promising:
NTLA-2001 trial data corroborated previous findings, demonstrating 93% reduction in ATTR amyloidosis polyneuropathy biomarkers. This fatal disease caused by TTR gene mutations leads to a build-up of faulty TTR proteins causing heart failure. Intellia states that their RNA editing technology (similar to that of COVID-19 vaccines), is likely to permanently inactivate the TTR gene!
Moreover, NTLA-2002 was announced to have progressed into Phase 2 clinical trials for the treatment of hereditary angioedema, another rare genetic disorder with no available cure.
Analyst rating: Buy, + 207%
Eli Lilly & Co: LLY + 16% in the past month
I’ve been holding Eli Lilly shares since January due to the encouraging results of their ground-breaking diabetes and obesity medication. I’ve already discussed this in my videos, so I’ll stick to what’s new:
Lilly’s antibody treatment for Alzheimer’s disease has shown to slow the disease’s progression by 35% in Phase 3 trials! The 20 years of research that led to this breakthrough have provided key insights into tracking the progress and mechanisms of Alzheimer’s disease progression.
Analyst rating: Overweight (deserves higher valuation)
Emyria: EMD
Okay, Emyria hasn’t soared (yet). Shoot me.
They did, however, unveil a promising innovation: a ‘high potency ultra-pure CBD capsule.’ This medication will allow patients to ingest significantly higher doses of CBD than is currently practical with CBD oil formulations.
Dr. Michael Winlo, Emyria's Managing Director, announced that the company is in talks with the FDA regarding clinical trial registration for the treatment of ‘anxiety disorders and complicated pain syndromes’ with this capsule in the US.
Furthermore, Emyria has partnered with Aspen Pharmacare to start distributing a low dose version of this CBD capsule over the counter in Australia after completion of Phase 3 trials.
Another wonderful reason for Emyria to peak your interest is their research of MDMA analogues, in collaboration with my Honours supervisor A/Prof. Matthew Piggott. Matt’s hardworking postoc student has amassed a library of 150 analogues of MDMA, which they aim to convert into a faster-acting and more effective therapy for treating Parkingsons disease.
Go Matt!
After reporting a full year loss per share of 0.0027 in 2022, compared to 0.022 in 2021, their stock is down to an all-time low! Is it time to buy into cannabis and psychedelic research, or is it better to wait?
Let’s get even more bullish!
If you’ve read this far and are still thinking about betting big on biotech in 2023, I’ve got something for you. The Direxion Daily S&P Biotech Bull 3X Shares (LABU) is a triple leveraged ETF that ‘covers a large range of biotechnology companies in the US.’ This fund is up 28% in the past week!
‘Triple leverage’ comprises of tripling your losses or gains, as if you borrowed triple your initial money. This comes at the cost of a slightly larger management fee (1.02% instead of the usual 0.2/0.5%).
Beware of the risks of leverage! Please do some more research before investing.
I hope you’ve enjoyed this financial edition of the Investing in Science newsletter and hopefully gained useful insights. Go about your week investing just a little bit more of your time, effort, love and money in science!
