Turkey Shoot…December Preview

Well, that didn’t last long, did it? On Tuesday and Wednesday we saw what looked like a great reversal for biotech. The XBI opened dramatically lower on Tuesday then reversed into a nice gain. With a similar move on Thursday, traders who own small healthcare names breathed a sigh of relief heading into Thanksgiving.

That blissful feeling lasted about as long as the stuffing at a table full of teenagers. When Friday brought news of a new strain of the CoronaVirus, things reversed immediately and the slaughter was renewed.

Not much is known at this time about the strain, now named Omicron, but reaction to the unknown has been swift and strong. Many countries are limiting international travel and global markets took it on the chin.

While not a virologist, and, therefore, not making an assessment of the danger represented by Omicrom, my thinking is that the US economy will likely take this development in stride. Much of the country is vaccinated and there is very little public support for locking the country down again. I don’t see this having a major, long-term impact on the market.

Instead, once things shake out, I believe we will see the biotech bounce resume in force. My companies remain poised for success, with strong balance sheets and major value creation catalysts coming rapidly at many of them.

Without further ado, so that I can get back to the family festivities, I’ll present to you the December catalysts for TW’s companies. There are going to be lots of opportunities for our stocks to pick their heads up over the balance of 2021. Will this end up being a great year for TW? Uhhhh…no way, Jose. Are we teed up for long-term success with this portfolio? 100%!!!

Known catalysts...

Anixa (ANIX): Expecting to see the 1st CAR-T patient dosed in their ovarian cancer trial. With no solid-tumor CAR-T programs having proven successful, the risk and reward behind Anixa’s strategy is high on both sides. However, there are reasons to be optimistic that the first strategy targeting FSHR might ring the bell. If it does, we will see signs of this in the 1st quarter of 2022, which is not long to wait for a potential blockbuster result.

Fortress Bio (FBIO): partner company Checkpoint Therapeutics (CKPT) is due to report top-line data for Cosibelimab before year-end, which could lead to an approval and commercial launch in 2023. Not only will this data reveal if Cosibelimab is ready for approval, but it will also reveal how it stacks up against Merck’s anti-PD-1 immunotherapy, Keytruda, Bristol Myers Squibb’s Opdivo, and Regeneron’s Libtayo. Success vis-a-vis these blockbuster drugs would pave a path to rapidly becoming a $1B+ drug.

INmune Bio (INMB): several meaningful events are due to come together for INmune in December. These include starting their phase 2 trial in Alzheimer’s Disease, which should dose its first patient any day now. However, the potentially bigger deal for the stock in the near-term could be publication of more data from their first two patients treated with INKmune. If the 1st patient’s NK cells are still active, and showing memory-like activity, well more than 100 days since dosing, that could be a wake up call for the market. Likewise, the second patient getting positive blast data and lining up for a second bone-marrow transplant could represent a complete reversal of fortune for this AML sufferer, who has been doing much better ever since receiving her doses.

Potential Catalysts…

Atomera (ATOM): we continue to believe that all signs point towards success for Atomera’s MST. Will they ink another JDA or license here as we approach year-end? It’s quite possible, but we’ll never know until they drop the PR.

Parkervision (PRKR): will Parker have any more settlements in December? It seems like they are close to coming any day now. The first were the smallest, so the next to happen could be meaningful to the stock. As well, I expect to see a date for the Qualcomm trial released any day now. Once that date is set, I think shares will rally into the trial.

TFF Pharma (TFFP): will Glenn get his two deals done? Although the clock is working against him, it’s quite possible we see at least one inked in December. This announcement would represent the inflection point for TFFP, in my opinion. I continue to pick up shares in anticipation.

I hope everyone had a blessed and wonderful Thanksgiving. I’m appreciative of all the positive reader responses and look forward to what I hope is a successful conclusion to this very trying year.