Business review of Sarepta Therapeutics Inc, Gilead Sciences Inc and Sativa Group Plc

  • Nov 21, 2019 GMT
  • Team Kalkine
Business review of Sarepta Therapeutics Inc, Gilead Sciences Inc and Sativa Group Plc

Sarepta Therapeutics Inc

Sarepta Therapeutics, Inc is a Cambridge, Massachusetts based drug development and biotechnology company operating out of United States of America. The company is in the drug development stage with only one of its formulations Eteplirsen having received US FDA approval. Most of the company’s therapeutics are targeted towards viral infections like Ebola, Influenza, West Nile virus, SARS, Calicivirus and dengue fever and towards more serious human ailments like colorectal and pancreatic cancers.

The shares of the company have a listing on the NASDAQ, where they trade with the ticker name SRPT. The shares of the company also form part of the Russel 1000 index.

Trading update

The company on 7 November 2019 came out with the third quarter financial results for the period ending on 30 September 2019.

  • The company for the three-month ending on 30 September 2019 recorded a net revenue of $99.0 million, against a net revenue of $78.5 million recorded for the same period in 2018, marking an increase in revenues of $20.5 million compared to the year ago period.
  • For the nine-month period ending on 30 September 2019 the company recorded a net revenue of $280.7 million, against a net revenue of $216.6 million recorded for nine-months ending on September 30, 2018 marking an increase of $64.1 million.
  • The company’s third quarter Research and development expenses stood at $133.9 million whereas for the same period in 2018 the Research and development expenses stood at $86.6 million marking an increase of $47.3 million.
  • As on 30 September 2019 the company had cash, cash equivalate and investments at its disposal of $1.1 billion, whereas for period ending on 31 December 2018 cash, cash equivalate and investments with the company stood at $1.2 billion.

Performance at Nasdaq

Over a 52-week period the shares of the company have a high of USD$ 158.80 and a low of USD$ 72.05. The market capitalisation of the company is about USD$ 7.63 billion.

Outlook

The shares of the company over the past six-month period has suffered a lot on account of a class action suit instituted against the company by Los Angeles based Schall Law Firm for having disclosed wrongful information about one of its drugs for which investors may have suffered financial losses.

Other than that, the performance of the company has been sterling and as per expectations of the management. The management of the company further expects to complete the year as per market expectations.

Gilead Sciences Inc

Gilead Sciences Inc is a United States of America based biotechnology and drug discovery and development company domiciled in Foster City in the state of California. The company’s drugs are targeted towards the treatment of viral diseases like Hepatitis C, Hepatitis B, influenza and HIV. The company’s two headline drugs are Harvoni and Sovaldi.

The shares of the company have a listing on the NASDAQ. There the shares trade with the ticker name GILD. The shares of the company are also components of the NASDAQ Biotechnology index, NASDAQ 100 index, S&P 100 index and the S&P 500 index.

Trading Update

The company on 24 October 2019 came out with the third quarter financial results for the period ending on 30 September 2019.

  • The total revenues reported by the company for the third quarter of 2019 stood at $5.6 billion in comparison to $5.6 billion total revenues reported for the same period in 2018.
  • The Net loss of the company for the third quarter of 2019 stood at $1.2 billion, whereas it had reported a net income of $2.1 billion for the same period in 2018.
  • The Net loss per share of the company for the third quarter of 2019 stood at $0.92 per diluted share, whereas it had reported a net income of $1.60 per diluted share for the same period in 2018.
  • The Non-GAAP net income of the company for the period was $2.2 billion for the third quarter of 2019 whereas it had reported a Non-GAAP net income of $2.4 billion for the same period in 2018.
  • The Non-GAAP net income of the company for the period was $1.75 per diluted share for the third quarter of 2019 whereas it had reported a Non-GAAP net income of $1.84 per diluted share for the same period in 2018.

Performance at Nasdaq

Over a 52-week period the shares of the company have a high of USD$ 72.90 and a low of USD$ 60.32. The market capitalisation of the company is about USD$ 82.08 billion.

Outlook

The department of Health and Human services of the Federal government of the United States of America has sued the company for one of its drugs Truvada, which is a HIV prevention drug. The department claims that their researchers had discovered the actively used components used in the company’s drugs much before the company had applied for patents for the same.

Other than that, the company’s performance has not been up to the mark for this period with flat revenues. The company however has revised its guidance for the full year with minor changes.

Sativa Group Plc

Sativa Group Plc is a United Kingdom domiciled drug development and biotechnology company. The company is principally engaged in the development and commercialisation of cannabis and cannabinoids-based drug development and marketing. The company has five subsidiaries namely; Goodbody Botanicals, Goodbody Wellness, Tessellate Collective, Phytovista laboratories and Sativa Grow.

The shares of the company have a listing on the NEX Exchange. Here the shares of the company trade with the ticker name SATI.

Trading Update

The company on 24 September 2019 came out with the interim results for the six-month period ending on 30 June 2019.

  • The Revenues of the company for the six-month period increased by 133 per cent over the second half of 2018 to stand at £588,000, whereas for the first half of 2018 the revenue figures stood at £8,000, and for the second half of 2018 the revenue figures stood at £252,000.
  • For the six-month period there was a 5 per cent increase in gross margin of the company to stand at 46 per cent, over the second half of 2018. The gross margin for the first half of 2018 was 87 per cent, and for the second half of 2018, it was 41 per cent.
  • The Gross profit of the company for the period was £273,000, which is an increase of 164 per cent over the second half of 2018. For the first half of 2018 the gross profit figure was £7,000, and for the second half of 2018, it was £103,000.

Performance at the NEX Exchange

Source: Thomson Reuters

The shares of the company were last trading on the NEX Exchange on 21 November 2019, at the time of writing of this report the shares were trading at GBX 5.390. Over a 52-week period the shares of the company had a high of GBX 9.95 and a low of GBX 4.20. The market capitalisation of the company at the time of writing was £30.21 million.

Outlook

Cannabis based medicines and therapeutics have been gaining popularity lately. The company has distribution channels in Germany and has been able to generate significant revenues over the previous few periods. The management of the company expects to extend this performance for the rest of the year as well.

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