Daily Brief United States: USD, Central Garden & Pet Co, Context Therapeutics and more

• Crypto markets are at their most volatile when liquidity is low.
• Prices have less support to both the downside and the upside, which could explain BTC’s rapid +17% surge since the start of the month.
• Liquidity has also become a hot topic in traditional financial markets as the banking sector reels from several high-profile collapses.

• Historical data suggests that the company’s gardening sales are set to surge.
• However, the stock’s price multiples reveal that it is at a deep discount relative to its cyclical average.
• A peer-based analysis implies that the stock is undervalued, but dividends remain astray, according to the company.

In an unexpected move, Context Therapeutics has announced that it will be discontinuing further development work on its ONA-XR program and prioritize the development of its novel preclinical bispecific CLDN6xCD3 antibody, CTIM-76. While we view the news as disappointing given efficacy data in the OATH study were encouraging, we understand the need to prioritize safety for patients. With a market cap of $11m, Context is trading well below cash levels (end-FY22 cash balance of $35.5m). We have withdrawn our estimates and will revisit our model assumptions and overall valuation in due course. We note that the discontinuation of the ONA-XR programs allows Context to extend its cash runway to late 2024 (versus early 2024 previously), well past the planned IND filing of CTIM-76 in Q124.