| We share regular “stock commentaries” with investors and innovation enthusiasts on stocks that have experienced significant up or downturns in the market over the course of one week (up or down more than 15% in one day). We hope you enjoy today’s commentary. Grayscale Bitcoin Investment Trust (GBTC) Grayscale Bitcoin Investment Trust (GBTC), a trust tracking bitcoin’s market price, was up 15.5% on Tuesday after the bitcoin price appreciated back to $5,000, breaking above its 200-day moving average for the first time in 2019. As measured by daily returns, the price increased at the most rapid rate since December 2017. While analysts have been unable to reach consensus on the reason for the recent appreciation in price, several theories have emerged: a single 100 million BTC order algorithmically managed across three venues, an April Fool’s prank, or simply 15 months of bear market trending with signs of a reversal. ARK believes that bitcoin is one of the most compelling alternative assets of the 21st century. Our conviction has increased during the last 15 months of a bear market. As a decentralized system for global money, bitcoin has the potential to become the most reliable way to store and transfer value, capitalizing on a multi-trillion dollar market opportunity. Iovance Biotherapeutics (IOVA) Iovance Biotherapeutics (IOVA) closed up 20.4% on Wednesday upon announcing clinical trial design updates for two pipeline programs. Iovance is among the leading immunotherapy companies focused on tumor-infiltrating lymphocyte (TIL) therapy for the treatment and potential cures for various solid tumor indications. The company announced updates to its clinical programs with TIL therapy in the treatment of cervical cancer and non-small cell lung cancer (NSCLC). The protocol for innovaTIL-04 (C-145-04), the Phase 2 study in cervical cancer, was amended to increase the sample size to 59 and to modify the primary endpoint of Objective Response Rate (ORR) to be determined by a Blinded Independent Review Committee (BIRC). Iovance made changes in anticipation of a meeting with the Food and Drug Administration (FDA) planned for later this year to discuss the registration pathway for LN-145 in cervical cancer. Additionally, the company closed its IOV-LUN-201 study in non-small cell lung cancer (NSCLC) and instead plans to add an arm to the global IOV-COM-202 study for PD-1 naïve NSCLC patients. By increasing the sample size for the cervical cancer study, the company might be expecting to bypass phase 3 studies and is powering the Phase 2 trial for registration activities. Changes in the NSCLC trial moves the therapy towards earlier lines of treatment. These broad changes to clinical trials probably indicate Iovance’s conviction in its pipeline programs. Evogene (EVGN) Shares of Evogene (EVGN), an Israeli biotechnology company, closed up 30% on Wednesday based on news that it had formed a subsidiary, Canonic Ltd., to develop next-generation medical cannabis products. The subsidiary initially will focus on creating novel cannabis varieties by optimizing crop yield, stability, and metabolite composition through the utilization of Evogene’s Computational Predictive Biology (CPB) platform. Canonic is the latest addition to Evogene’s growing portfolio of companies that are addressing inefficiencies within agriculture, biofuels, and human therapeutics. AquaBounty Technologies (AQB) AquaBounty Technologies (AQB), a company focused on improving the productivity and sustainability of commercial aquaculture, traded up 15.9% on Thursday after the Environment and Climate Change Canada (ECCC) approved the Company’s Rollo Bay production facility for the commercial manufacturing and AquAdvanatage Salmon. AQB traded back down 18%, however, after announcing a secondary offering valued at $5.75 million on Friday. The announcement by ECCC, which reached the same conclusion as the U.S. Food and Drug Administration (FDA) after assessing AquaBounty’s Indian land-based production facility, is the fifth positive assessment of environmental safety after similar findings in Argentina, Brazil, and China. Aquabounty will begin stocking the Rollo Bay production facility immediately with the first harvest of AquaBounty Salmon expected in the fourth quarter of 2020. Net proceeds from the secondary offering will fund the capital costs of the first salmon batches at the company’s Rollo Bay and Indiana farm sites. We believe global aquaculture revenue will grow by 40% per year between 2017 and 2025. Pluristem Therapeutics (PSTI) Pluristem Therapeutics (PSTI), a leading regenerative medicine company developing novel placenta-based cell therapy products, traded down 32.8% on Thursday after announcing the pricing of its public offering. The $20 million deal will support R&D efforts associated with its various clinical trials. Pluristem has reported robust clinical trial data in multiple indications for its patented PLX cell product candidates and is conducting late stage clinical trials. PLX cell product candidates should be able to release a range of therapeutic proteins in response to inflammation, ischemia, muscle trauma, hematological disorders and radiation damage. Pluristem has proprietary three-dimensional expansion technology that can be administered to patients off-the-shelf, without tissue matching. It also has strong collaborations with various groups including the Defense Advanced Research Projects Agency (DARPA) and the National Aeronautics and Space Administration (NASA). Syros Pharmaceuticals (SYRS) Syros Pharmaceuticals (SYRS) closed down 23.3% today after announcing the pricing of a secondary equity offering. While much of traditional targeted drug discovery has focused on inhibiting or changing the function of abnormal genes and proteins, many more diseases could be addressed by controlling the expression of both abnormal and normal genes, specifically turning them on, off, up or down. Syros’ unique ability to regulate regions of the genome allows it to home in on which genes, cells, and patients to treat. In the past few months, it has expanded its oncology portfolio considerably and has been gearing up for pivotal trials for its lead indication, acute myeloid leukemia. For more research visit ark-invest.com/research. ARK Invest wishes you a happy Friday! – – – ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. Investors should determine for themselves whether a particular security or product is suitable for their investment needs or should seek such professional advice for their particular situation. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. For full disclosures, click here. |
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