The markets have been a bit shaky between oil prices evaporating and shareholders looking ahead to testimony from Janet Yellen.
On Monday morning as wary shareholders evaluated China’s transition to speed up its slowing economy and increasing oil prices which have raised hopes that the market has bottomed out. China’s central bank on Monday cut its reserve requirement ratio, or the amount of money that financial institutes must hold as reserves, for the fifth time in a year.
“It’s sort of like a sugar shock, a bump in near-term growth at the expense of longer-term credibility. I think investors are caught weighing the two,” stated Jack Ablin, chief investment officer at BMO.
While markets continue to sanction, there are various stocks to keep an eye on amid recent interaction and groundbreaking advancements; specifically in the biotech sector. In a recent announcement VBI Vaccines, Inc. (NASDAQ:VBIV) entered into a joint research venture with GlaxoSmithKline Biologicals SA, the Belgium-based human vaccine research arm of GlaxoSmithKline (NYSE:GSK). The engagement was entered into a system to have GSK Biologicals asses VBI’s LPV™ Platform. Being that GSK is putting in the hours to create or enhance current vaccines to cover a wide range of global diseases (including HIV, influenza, malaria, and tuberculosis) this evaluation will give GSK a window in which to option a negotiation of an exclusive licensing agreement on VBI’s LPV Platform for use in a established field.
The majority of GlaxoSmithKline (NYSE:GSK)‘s investigative studies focus on improving the access to vaccines for people in developing countries around the world. GSK Biologicals has teamed up with WHO (world Health Organization) and UNICEF to further its reach into lower economic regions and rid various deadly diseases. GSK Biologicals is also engaged in the worldwide hunt for vaccinations against avian flu and malaria. Being that VBI has verified evidence pertaining to concept research on various vaccines and biologic key points they have been able to display the LPV Platform’s ability to conserve potency under stress conditions. Furthermore, being that GSK is a very well established company, VBI’s LPV is not only limited to new vaccines.
The LPV Platform can be used for either new or current vaccines to maintain stability and potency of several classes of vaccine antigens and biologics, as well as protein-based, monoclonal antibodies, whole-inactivated, and live-attenuated vaccines and viral vectors. The vaccine market has very distinct structure, which increases the difficulty of evaluating and understanding pricing and procurement. It is made up of individual markets for individual vaccines or vaccine types, each with their own specifics. UNICEF Supply Division and PAHO Revolving Fund have considerable influence on the market, which allows them to procure vaccines for significantly lower prices than many countries could achieve on their own.
Every year UNICEF purchases some or all vaccines for up to 100 places around the world whereas PAHO procures for around 40 member states. Going on the connections made between GSK and organizations like UNICEF, VBI’s Platform in the near future could soon be on the high road for deployment by GSK Biologicals; both of which are publicly traded in biotech sector with potential in a bear market.
Eanings Review: Rambus Inc. (NASDAQ:RMBS), Revlon Inc (NYSE:REV)
Revlon Inc(NYSE:REV) +2.5% after-hours after announcing that President and CEO Fabian Garcia is stepping down “to pursue other opportunities,” and Executive Vice Chair Paul Meister will oversee operations on an interim basis.
REV also says it expects Q4 revenues of $785M, below $801M from the year-earlier quarter but ahead of analyst consensus estimate of $743M, and a $60M-$80M net loss for the quarter due to a charge related to the recent tax law changes.
REV expects Q4 adjusted EBITDA of $110M-$115M vs. $115M analyst consensus.
CFO Chris Peterson also denies rumors that the company is considering a material asset transfer that would shield assets from lenders.
Rambus Inc.(NASDAQ:RMBS) shares are down 5.5% aftermarket following Q4 results that beat revenue estimates and met on EPS. In-line Q1 guidance (under ASC 605 accounting change) has revenue from $94M to $100M (consensus: $100.38M) and EPS from $0.17 to $0.23 (consensus: $0.18).
Revenue breakdown: Royalties, $77.9M (+10% Y/Y); Product, $8.5M (-27%); Contract and other revenue, $15.5M (+2%); Licensing billings, $76.6M (+18%).Key metrics: Non-GAAP operating margin, 31%; total operating expenses, $67.5M; cash and equivalents, $172.2M; cash flow from operations, $33.3M.
ADTRAN, Inc. (NASDAQ:ADTN) Hits New Lows After Issuing disappointing Earnings Forecast
ADTRAN, Inc.(NASDAQ:ADTN) slumped to a 52-week low after forecasting below consensus guidance for Q4, revising its revenue estimate downward to $125M from $155M-$165M earlier and seeing EPS of ~$0.01; analysts had expected EPS of ~$0.14 and revenue of $161.2M.
ADTN also projects Q1 to come in at roughly the same as Q4, misses analyst consensus of $167.5M.
CEO Tom Stanton says Q4 results have been hurt by a merger-related review, which ADTN expects to be completed in 60-90 days, and slowdown in the spending at a domestic Tier 1 customer.
MKM Partners analyst Michael Genovese believes the customer is CenturyLink (CTL -2%), which accounted for 24% of ADTN’s total sales in 2016.
The analyst thinks the weakness should prove temporary, adding that ADTN’s performance likely will accelerate into 2019 as the company stands to benefit from 5G spending; MKM trims its ADTN target price to $25 from $27 but keeps its Buy rating.
Big IPO Coming: Celator Pharmaceuticals Inc(NASDAQ:CPXX), Moleculin Biotech’s (MBRX)
Today at 10am Eastern, Moleculin Biotech ticker symbol MBRX will debut on the Nasdaq stock exchange and is being considered as one of the most highly anticipated IPO’s of 2016 by the street. The excitement and anticipation is arising from many experts saying that Moleculin Biotech’s (MBRX) drug annamycin is far superior to Celator Pharmaceuticals Inc(NASDAQ:CPXX) drug daunorubicin.
CPXX which has been bought out by Jazz Pharmaceuticals plc – Ordinary Shares(NASDAQ:JAZZ) for $1.5 Billion Dollars last week, share price ran from $1.6 to $31 in 2 months. Moleculin Biotech’s share structure is a 1.5m public float Priced at $6.