Small cap biotechnology companies had a busy May with a majority of stocks in the sector reporting financial results. The sector was up 2% over the past week, meaning now is a great time to look at this batch of stocks that is rebounding from a rough YTD (down 20%). Here are five companies who released positive quarterly results that you should start researching immediately.
ImmunoPrecise Antibodies, Ltd. (NASDAQ: IPA) recently announced a 460 thousand Euro grant for its subsidiary Biostrand. This is just the latest positive cash flow news for the diversified biotech company. The company earns revenues from sales of proteins to other research and preclinical companies, and is developing therapies and drugs through its subsidiaries.
Its most recent quarterly filing (2022 fiscal Q3 ending Jan. 31, 2022) painted a healthy capitalization picture for investors.
- CA$32 million in cash, CA$56 million in assets
- CA$14.1 million in revenues for the 9 month period creating CA$7.6 mill in gross profit
- CA$4.8 million for the quarter creating CA$2.5 million in profit
- CA$5.7 million in R&D expenses (9 mo) up from $1.3 million in 2021– the largest driver in the increased net loss.
Biotech is one of the few industries where a net loss isn’t an outright negative indicator. Many biotechnology companies are pre-revenue so they operate in the red exclusively. Conversely, IPA is already earning revenue through the sale of mammalian proteins to companies for research and preclinical studies, this along with healthy cash flow allows the company to continue funding studies for its R&D wing Talem Therapeutics.
IPA through Talem is moving its novel candidate PolyTope ® (TATX-03), an anti-COVID therapy, through the clinical pipeline; it is on the verge of Stage 1. The company has several other therapies, vaccines, and medicines in the R&D pipeline; however, PolyTope is the lead candidate. (view the full pipeline here: https://talemtherapeutics.com/pipeline/)
The company announced in April that its PolyTope cocktail has shown strong neutralization of the Omnicron COVID variant. Currently, most therapies approved by the FDA Emergency Use Authorization have lost neutralizing potency against Omnicron. IPA through conversations with the FDA anticipated this and has prioritized potency screening to help differentiate itself.
IPA is close to its next filing period which could be a catalyst for the stock; any updates on PolyTope’s progress could also send the stock soaring. So, investors interested should start researching IPA today.
Atea Pharmaceuticals Inc. (Nasdaq: AVIR) is a clinical-stage company focusing on the discovery, development, and commercialization of antiviral therapeutics. Atea's current product pipelines include antiviral drugs to treat COVID-19, Dengue virus, Hepatitis C, and Respiratory Syncytial Virus (RSV). AVIR announced new clinical results from several studies:–MORNINGSKY trial showing 71% reduction in hospitalization (secondary endpoint) in broad patient population with COVID-19 treated with bemnifosbuvir (AT-527) versus placebo (p=0.047, unadjusted, exploratory).
–Final analysis of Phase 2 hospitalized study in high-risk COVID-19 patients suggest potential clinical benefits with bemnifosbuvir versus placebo
–In vitro results demonstrate bemnifosbuvir retains antiviral activity against all SARS-CoV-2 variants of concern, including Omicron (BA.1)
–Initiated Phase 2 global study and human challenge trial with AT-752 as potential first-in-class antiviral treatment for dengue
Liquidia Corp. (Nasdaq: LQDA) is a biopharmaceutical holding company. It operates through its two wholly-owned subsidiaries, Liquidia Technologies Inc. and Liquidia PAH, to develop and commercialize products to treat illnesses including in pulmonary hypertension. In November 2021, the FDA issued a tentative approval for Liquidia's YUTREPIA inhalation powder for the treatment of pulmonary arterial hypertension (PAH). Pending U.S. regulatory approval, it plans to launch the product in late 2022.
LQDA announced its Q1 results in May, highlights included:- Secured access to new capital through debt and equity transactions
- Increased utilization of Treprostinil Injection with increasing payer
generic mandates
- Advanced Hatch-Waxman litigation in support of final regulatory approval of YUTREPIA™ (treprostinil) inhalation powder
Absci Corporation (Nasdaq: ABSI) a drug and target discovery company harnessing deep learning AI and synthetic biology to expand the therapeutic potential of proteins. We built our Integrated Drug Creation™ Platform to identify novel drug targets, discover optimal biotherapeutic candidates, and generate the cell lines to manufacture them in a single efficient process. The company entered into a research collaboration with Merck for Bionic™ Enzyme generation, and Merck has the option to nominate up to three targets and enter into a drug discovery collaboration (up to $610 million in upfront fees and milestone payments, as well as research funding and tiered royalties on sales). Absci reiterated its guidance to add at least eight new Active Programs for 2022, representing 60% year-over-year growth.
Aptevo Therapeutics (Nasdaq: APVO) is a clinical-stage biotechnology company focused on developing novel immunotherapies for the treatment of cancer. Aptevo is seeking to improve treatment outcomes of cancer patients. The company released its Q1 financials in May. APVO’s royalty revenue increased by $0.7 million, or 29%, to $3.1 million from $2.4 million for March 31, 2021. Royalty revenue comes from Pfizer on global net sales of RUXIENCE® (rituximab-pvvr), a biosimilar to the drug RITUXAN®, launched by Pfizer in early 2020. The company also earned and collected a $10 million non-dilutive milestone payment related to 2021 sales of RUXIENCE®. Additionally, based on RUXIENCE 2021 fourth quarter and full-year sales results, the Company is optimistic about the potential to earn additional non-dilutive milestones totaling $22.5 million over the next two years.
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