AAPL 169.89 0.5147% MSFT 399.04 -2.4495% GOOG 157.95 -1.9553% GOOGL 156.0 -1.9669% AMZN 173.67 -1.6535% NVDA 826.32 3.7087% META 441.38 -10.5613% TSLA 170.18 4.9652% TSM 136.58 2.7149% LLY 724.87 -1.0011% V 275.16 0.0509% AVGO 1294.42 2.9917% JPM 193.37 0.1502% UNH 493.86 1.3462% NVO 125.79 -0.2933% WMT 60.21 0.5679% LVMUY 167.91 -2.1618% XOM 121.35 0.2478% LVMHF 837.0 -2.6461% MA 462.11 -0.0843%
Vertex Pharmaceuticals Inc.
Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) is a company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta for cystic fibrosis, where Vertex therapies remain the standard of care globally.
Key highlights
Source: Company Reports
Source: Company Reports
Source: Refinitiv (Thomson Reuters)
Financial overview of Q1 2021 (in thousands of USD)
Source: Company
Risks associated with Investment
The Company's income depends upon the results of the clinical trial and the subsequent approval of trials. There is a chance of cancellation of the drug approval, which might result in the commencement of new clinical activities and require more funds and delay the launch's timeline.
Valuation Methodology (Illustrative): EV to EBITDA
Note: All forecasted figures and peers have been taken from Thomson Reuters
1-Year Price Chart (as on May 6, 2021). Source: Refinitiv (Thomson Reuters)
Stock recommendation
The first quarter continued to make significant progress towards its goal that all eligible patients have access to and can benefit from CFTR modulators. The company also delivered strong revenue and earnings growth. The group is significantly progressing across its broad pipeline, including the advancement of VX-548 to Phase 2 in acute pain, initiation of the Phase 1/2 clinical trial with VX-880 in type 1 diabetes and completion of enrollment and dosing in Phase 2 proof-of-concept study with the AAT corrector, VX-864. Furthermore, the recent amendment of its agreement with CRISPR Therapeutics for the CTX001 program further enhances its leadership position in cell and genetic therapies. The group looks forward to completing the ongoing trials for CTX001 sickle cell disease and beta-thalassemia this year. Therefore, based on the above rationale and valuation, we recommend a "Buy" rating on the stock at the closing price of USD 213.16 as of May 6, 2021. We have considered Neurocrine Biosciences Inc, Incyte Corp, etc., as the peer group for the comparison.
Paysafe Limited
Paysafe Limited (NYSE: PSFE) is a leading specialized payments platform, which enables businesses and consumers to connect and transact flawlessly through payment processing, digital wallet, and online cash solutions. The platform is used by ~5 million people across more than 120 countries.
Key Updates
Source: Company Presentation
FY20 Financial Highlights:
FY20 Income Statement Highlights (Source: Company Report)
Risks: The company is yet to mark profitability despite having an impressive product presence. Continuation of the above trend is likely to dampen the financial flexibility of the firm.
Valuation Methodology (Illustrative): EV to Sales based
(Note: All forecasted figures and peers have been taken from Thomson Reuters).
One-Year Price Chart (as on May 06, 2021). Source: Refinitiv (Thomson Reuters)
Stock Recommendation:
The group has an impressive business model of a specialized payments platform. Moreover, the company has a decent presence across geographies, which is a key positive. However, on the flip side, the company’s operating expensed remain elevated which resulted in loss at the bottom-line level. Continued losses are likely to dampen the financial flexibility of the firm, which remains as a key concern. We have valued the stock using the EV to Sales-based relative valuation method and have arrived at a double-digit downside (in percentage terms). For the said purposes, we have considered industry (Software & IT Services) mean on NTM basis. Moreover, the stock of PSFE corrected ~10% and ~29% in the last one months and three months, respectively. Considering the aforesaid facts, we suggest a 'Watch' stance on the stock at the last closing market price of USD 12.76 on May 06, 2021.
Vyant Bio Inc.
Vyant Bio Inc. (NASDAQ: VYNT) operates through its two wholly-owned subsidiaries, StemoniX and vivoPharm. Integrating the above two businesses, the company would work upon discovery and development of preclinical and clinical pipelines for biopharma partners as well as for the proprietary pipeline of the Company.
Key Updates:
FY20 Financial Highlights:
FY20 Income Statement Highlights (Source: Company Report)
Risks: The company is working on the research for Human iPSCSpheroids and is yet to report full commercialization. Moreover, future operations depend upon the timely approval from the regulatory bodies and a delay in clinical trials and approval would impact the company’s overall performance.
One-Year Price Chart (as on May 06, 2021). Source: Refinitiv (Thomson Reuters)
Stock Recommendation:
The group is working on its Human-based disease model for HT drug discovery and is using Artificial - Intelligence based technology, which would lead to billions of potential molecules to the best compounds and would help the company’s research and development. The VYNT stock declined ~28% and ~19% in the last one month and three months, respectively. Moreover, the company is witnessing constant losses, which is likely to affect the financial flexibility of the group. We prefer to remain on the sideline on account of the lack of the growth drivers. Hence, considering the aforesaid facts, we give an 'Avoid' rating on the stock at the last closing price of USD 3.29 on May 06, 2021.