In today’s briefing:
- CRISPR Therapeutics AG (CRSP US): First Genome Editing Based Drug Candidate Seeking FDA Approval
- SPX Sequence into Early June
- Bristol Myers Squibb Company: Are The New Strengthened Cell Therapy Capabilities Enough? – Key Drivers
- Edwards Lifesciences Corporation: TAVR Therapy & Strong Investments For The Future – Key Drivers
- Gilead Sciences Inc.: The Xinthera Acquisition Strengthens The Oncology Pipeline – Key Drivers
- Caterpillar Inc.: Collaboration With Nouveau Monde Graphite & Other Drivers
- Intel Corporation: Expansion of Cloud Capabilities & Other Drivers
- RCI Hospitality Holdings, Inc. – 2Q Results Exceed Expectations
- SDRL: Early Arrival of Free Cash Flow
- Altria Group Inc.: Acquisition Of NJOY Holdings & Other Drivers
CRISPR Therapeutics AG (CRSP US): First Genome Editing Based Drug Candidate Seeking FDA Approval
- CRISPR Therapeutics AG (CRSP US) completed regulatory submissions for exa-cel in the U.S., EU, and UK, positioning exa-cel to potentially become the first approved CRISPR-based therapy in the world.
- According to Evaluate Pharma, if approved, exa-cel’s revenue is expected to be $1B+ in 2028, with expected market share of 20% in sickle cell and 36% in beta thalassemia.
- As of March 31, 2023, CRISPR has cash, cash equivalents, and marketable securities of $1,889.5M, which is sufficient to fund its operating expenses for ~3 years.
SPX Sequence into Early June
- SPX has once again slipped from the 4,200 high zone. Bounce support lies at 4,120/100.
- Our preferred sequence touted a pullback from 4,200-20 which holds 4,100 and rockets back to 4,200+ on the back of a debt deal with overshoot risk to 4,250.
- Any new June high will be unsustainable and fall prey to macro undercurrents. USD getting a bid on yield and risk aversion.
Bristol Myers Squibb Company: Are The New Strengthened Cell Therapy Capabilities Enough? – Key Drivers
- Bristol Myers had a mixed start to 2023 with below par revenues but its earnings exceeded analyst expectations as the management continues to accelerate the renewal of its portfolio and execute its strategy.
- During the quarter, the company’s new product portfolio and in-line brands grew.
- Revenue from its new product portfolio more than doubled as compared to the previous year.
Edwards Lifesciences Corporation: TAVR Therapy & Strong Investments For The Future – Key Drivers
- The last quarter proved to be a strong one for Edwards Lifesciences and its results exceeded market expectations in terms of revenues as well as earnings.
- While Japan faced lingering COVID impacts, strong growth was observed in the U.S., Europe, and the rest of the world.
- With a positive outlook, a strong pipeline, a raised sales expectation for the full year, and a commitment to innovation and clinical outcomes, the Edwards Lifesciences management intends to capitalize on the opportunities in the cardiovascular healthcare market.
Gilead Sciences Inc.: The Xinthera Acquisition Strengthens The Oncology Pipeline – Key Drivers
- It was a mixed quarter for Gilead Sciences as the company’s revenues were above Wall Street expectations but it missed out on the earnings front.
- On the expense side, R&D expenses came in higher than anticipated, reflecting the company’s commitment to investing in research and development.
- We give Gilead Sciences, Inc. a ‘Hold’ rating with a revised target price.
Caterpillar Inc.: Collaboration With Nouveau Monde Graphite & Other Drivers
- Caterpillar had a strong start to 2023 with an all-around beat.
- The company’s result was marked by double-digit top-line growth across all segments, higher operating profit margins, and significant adjusted profit per share.
- Caterpillar experienced healthy customer demand across most end markets for its products and services, reflecting the successful execution of its long-term growth strategy.
Intel Corporation: Expansion of Cloud Capabilities & Other Drivers
- Intel delivered solid first-quarter results with revenues above expectations and narrower than expected losses.
- The fallouts of this quarter demonstrate the advancement Intel is making to advance the company’s transformation as well as the IDM 2.0 strategy.
- In the quarter, Intel introduced its 13th Gen Intel Core Mobile processor, followed by its new vPro platform.
RCI Hospitality Holdings, Inc. – 2Q Results Exceed Expectations
- 2Q Summary. RCI reported another strong quarter, surpassing our projections.
- The company has proven its ability to generate significant FCF, driving accelerated growth.
- We see several catalysts on the near-term horizon (Rick’s Cabaret Steakhouse & Casino, organic growth from Bombshells, and club acquisitions), which should drive a reacceleration in earnings growth in FY24.
SDRL: Early Arrival of Free Cash Flow
- SDRL reported Q1 results affirming the positive attributes of the business after repositioning assets in the fourth quarter. The first quarter included economic utilization of 95% resulting in cost absorption
- Day rates continue to trend higher putting SDRL in an advantageous spot as a portion of its fleet becomes available late in 2023 and early 2024
- Subsequent to the first quarter, SDRL closed the acquisition of Aquadrill and has now provided full year guidance incorporating the business
Altria Group Inc.: Acquisition Of NJOY Holdings & Other Drivers
- It was a disappointing quarter for Altria Group as the company failed to meet the revenue expectations as well as the earnings expectations of Wall Street.
- The resilience of their leading brands like Marlboro and Copenhagen is strong but it couldn’t help the company deliver revenues up to the mark.
- Additionally, Altria saw the continued growth of Oral Nicotine Pouch products solidifying its position in the oral tobacco category.
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