Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&amp;A.</li><li>Eli Lilly and Company (LLY) received FDA approval for donanemab (Kisunla) in early Alzheimer’s, which was largely expected following unanimous support from the June AdComm and multiple delays.</li><li>The cost of Kisunla is $32K/year, which is at a premium to Leqembi (Biogen, Inc. [BIIB]/Eisai Co., Ltd. [ESAIY]) at $26.5K/year, but total cost per patient should be lower for Kisunla, as treatment can be stopped with amyloid clearance.</li></ul>

We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&amp;A.Eli Lilly and Company (LLY) received FDA approval for donanemab (Kisunla) in early Alzheimer’s, which was largely expected following unanimous support from the June AdComm and multiple delays.The cost of Kisunla is $32K/year, which is at a premium to Leqembi (Biogen, Inc. [BIIB]/Eisai Co., Ltd. [ESAIY]) at $26.5K/year, but total cost per patient should be lower for Kisunla, as treatment can be stopped with amyloid clearance.

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>On 16<sup>th</sup> April 2020, Bloomberg reported that Gilead Sciences is considering acquiring a significant stake in Arcus Biosciences, a cancer therapeutics company backed by Alphabet Inc. (through its venture capital arm GV). We believe that the company’s interest lies in obtaining Arcus’ anti-TIGIT treatment, AB154 which is currently in phase 2 clinical trial for treating cancer.</li>
<li>Following the news release, Arcus’ shares jumped by around 89% to US$29.5 at the end of its trading on the 16<sup>th</sup>.</li>
<li>The deal could either be an equity purchase in Arcus or some other form of collaboration between the two companies. There is however no certainty of the deal and the talks could still fall apart.</li>
<li>The global immune-oncology market is expected to grow rapidly over the next couple of years driven by shifting demand for cell/immune based treatments from conventional chemotherapy drugs/treatments.</li>
<li>The demand for personalised treatments using genomic and immunity for oncology have been growing and the big pharma giants have been increasingly investing on small biotech firms with solid product pipelines to replenish their drug pipeline and earn high-returns.</li>
</ul>


On 16th April 2020, Bloomberg reported that Gilead Sciences is considering acquiring a significant stake in Arcus Biosciences, a cancer therapeutics company backed by Alphabet Inc. (through its venture capital arm GV). We believe that the company’s interest lies in obtaining Arcus’ anti-TIGIT treatment, AB154 which is currently in phase 2 clinical trial for treating cancer.
Following the news release, Arcus’ shares jumped by around 89% to US$29.5 at the end of its trading on the 16th.
The deal could either be an equity purchase in Arcus or some other form of collaboration between the two companies. There is however no certainty of the deal and the talks could still fall apart.
The global immune-oncology market is expected to grow rapidly over the next couple of years driven by shifting demand for cell/immune based treatments from conventional chemotherapy drugs/treatments.
The demand for personalised treatments using genomic and immunity for oncology have been growing and the big pharma giants have been increasingly investing on small biotech firms with solid product pipelines to replenish their drug pipeline and earn high-returns.


Gilead to Acquire a Stake in Arcus Biosciences; Offer May Come at a Large Premium

United States

Arcus Biosciences, Inc. operates as a biotechnology company. The Company discovers, develops, and commercializes immunotherapies for the treatment of cancer patients. Arcus Biosciences serves customers in the United States.

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Arcus Biosciences Inc (RCUS US)

Biopharma Week in Review - Jul 8, 2024

The cost of Kisunla is $32K/year, which is at a premium to Leqembi (Biogen, Inc. [BIIB]/Eisai Co., Ltd. [ESAIY]) at $26.5K/year, but total cost per...

Water Tower Research

Gilead to Acquire a Stake in Arcus Biosciences; Offer May Come at a Large Premium

On 16th April 2020, Bloomberg reported that Gilead Sciences is considering acquiring a significant stake in Arcus Biosciences, a cancer...

Shifara Samsudeen, ACMA, CGMA

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