Assignment 2: Assessing Financial Performance and Its Impact on Merger Acquisition
My Companies Are Adverum Biotechnologies, and Acer Therapeutics Inc
Due Week 10 and worth 300 points
Develop a financial plan for the next three years. Use the financial statements from your selected health care organizations that were the focus of the SWOT Analysis assignment and that you have been following in the e-activities throughout the quarter. Using the Annual Reports of both organizations, consider the financial ratio that analysts would use to evaluate the financial condition of each company. Speculate on the organizations’ ability to merge with their competitors.
Write a six- to eight-page paper (hire research essay pro writers) in which you: 1. Use your ratio analysis to determine whether the profitability trends are favorable or unfavorable and explain your rationale. 2. Suggest the key financial drivers that most likely will cause your health care organizations to merge. Provide support for your rationale. 3. Assume that your organizations have merged. Determine the evaluation criteria that a financial analyst would use to evaluate the financial performance of the organization postmerger. Identify the determinants that the analyst would use to decide whether the merger generated favorable financial results for the organizations. Provide support for your evaluation. 4. Predict the financial stability of the health care industry over the next three years. Provide support for your prediction. 5. Use at least three quality, current (no more than four years old) academic resources. (Note: Wikipedia and other websites do not qualify as academic resources. Scholarly resources include national health professional journals, governmental websites, and corporate organizations.)
E-Activity
Week 1 E-Activity
Professor and Class,
Choose and monitor two health care organizations to complete the written assignments.
E-Activity I have chosen these two (2) health care organizations to monitor and complete the written assignments
Acer Therapeutics Inc. A pharmaceutical company focused on the acquisition, development, and commercialization of therapies for patients with serious rare and ultra-rare diseases with critical unmet medical need. Our late-stage clinical pipeline includes two candidates for severe genetic disorders: EDSIVO(TM) (celiprolol) for vascular Ehlers-Danlos syndrome, or vEDS, and ACER-001 (a fully taste-masked, immediate release formulation of sodium phenylbutyrate) for urea cycle disorders, or UCD, and Maple Syrup Urine Disease, or MSUD. There are no FDA-approved drugs for vEDS and MSUD and limited options for UCD, which collectively impact approximately 7,000 patients in the United States.
Adverum Biotechnologies,Inc
A clinical-stage gene therapy company targeting unmet medical needs in serious rare and ocular diseases. Leveraging our next-generation adeno-associated virus (“AAV”)-based directed evolution platform, we generate gene therapy product candidates designed to provide durable efficacy by inducing sustained expression of a therapeutic protein. Our core capabilities include clinical development and in-house manufacturing expertise, specifically in process development, assay development, and current Good Manufacturing Practices (“cGMP”) quality control. Our leadership team has significant drug development and gene therapy expertise. We are advancing our robust pipeline of gene therapy product candidates designed to treat rare diseases, alpha-1 antitrypsin (“A1AT”) deficiency and hereditary angioedema (“HAE”), as well as wet age-related macular degeneration (“wAMD”)..
Week 2
Launching of new products
Professor and Class,
Have they launched a new product? Have they been involved in a scandal? Have they recently been fined for lack of compliance? Are their stocks fluctuating or holding steady?
If nothing has changed, compare different aspects of the companies. Is one stronger or weaker in an area than the other? Is there something on which they could work together?
Note: These are suggested topics; you may discuss any topic related to your companies. As the e-activities will be used for the larger assignments in the course you may want to use these updates as a place to draft your ideas and get feedback.
Acer Therapeutics Inc.
Acer Therapeutics and Opexa Therapeutics Close Merger and Financing
-Merger to create a pre-NDA-stage, Nasdaq-listed, pharmaceutical company focused on the development and commercialization of therapies for serious rare diseases with critical unme medical need-
-Combined company, renamed Acer Therapeutics Inc., to commence trading on Nasdaq under the symbol “ACER” on September 21-
-Concurrent financing of $15.7 million from Acer investor syndicate-
-Acer plans to file a NDA for its lead product, EDSIVO™, for the treatment of vascular Ehlers-Danlos Syndrome (vEDS) in the first half of 2018-
Adverum Biotechnologies,Inc
Adverum’s plans, potential opportunities, expectations, projections, goals, objectives, milestones, strategies, product pipeline, financial condition and results of operations, the sufficiency of its cash, cash equivalents and marketable securities, as well as the advancement of, and anticipated development and regulatory milestones and plans related to, Adverum’s product candidates and preclinical and clinical studies, and the commercial potential of its product candidates, all of which are based on certain assumptions made by Adverum on current conditions, expected future developments and other factors Adverum believes are appropriate in the circumstances. Adverum may not consummate any plans or product or clinical development goals in a timely manner, or at all, or otherwise carry out the intentions or meet the expectations or projections disclosed in its forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, the risk that Adverum’s resources will not be sufficient for Adverum to conduct or continue planned development programs and planned clinical trials, the risk of a delay in the enrollment of patients in Adverum’s clinical studies or in the manufacturing of products to be used in such clinical studies, risks related to regulatory review of Adverum’s development plans and planned clinical trials and the risk that Adverum will not be able to successfully develop or commercialize any of its product candidates.
Week 4
E-ACTIVITY
Professor and Class,
Acer Therapeutics Inc. and Adverum Biotechnologies,Inc
Acer Therapeutics Inc.
Acer Therapeutics Inc is a biotech and pharmaceutical company, headquartered in Cambridge, Massachusetts (Bloomberg, 2018). The company is founded in 2013. This company develops therapies for the treatment of serious ultra-rare diseases with critical unmet medical needs. Acer always engages in the development, acquisition, and commercialization of therapies for patients (Bloomberg, 2018). Acer has been working on developing orphan drugs, because patients are in extreme need of them and orphan drugs are commercially viable.
Acer Therapeutics has launched two new products: EDSIVO and ACER-001. EDSIVO (celiprolol) is developed for vascular Ehlers-Danlos syndrome (vEDS) and ACER-001 (a fully taste-masked, immediate release formulation of sodium phenyl butyrate) is developed for urea cycle disorders (UCD) and Maple Syrup Urine Disease (MSUD) (Bloomberg, 2018). It also offers advancing ACER-001 for the treatment of urea cycle disorders (UCD). Acer’s medicines have mechanistic differentiation and clinical proof-of-concept (Bloomberg, 2018).
Acer has not been involved in any scandal and not been fined for lack of compliance. It always follows clinical proof-of-concept. Acer always takes approval for their medicines by using the regulatory pathway established under section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act (FFDCA) (Bloomberg, 2018). Stocks of Acer are fluctuating.
Adverum Biotechnologies,Inc
As a clinical-stage gene therapy company, Adverum Biotechnologies, Inc. engages in developing gene therapy product candidates that target unmet medical needs in serious rare and ocular diseases (Globenewswire, 2018). Adverum generates product candidates to provide durable efficacy by leveraging a next-generation adeno-associated virus (AAV)-based directed evolution platform, with sustained expression of a therapeutic protein (Globenewswire, 2018). With the platform of industry-leading technology and experienced leadership team, this company is well positioned to advance its pipeline of novel gene therapies in future (Globenewswire, 2018).
Adverum has recently launched some new products: ADVM-043, ADVM-053 and ADVM-022 and ADVM-032. Adverum has a robust pipeline of product that includes ADVM-043 product to treat rare diseases alpha-1 antitrypsin (A1AT) deficiency which is in Phase I/II clinical trial; and ADVM-053 for hereditary angioedema disease, which is in preclinical stage; as well as ADVM-022 and ADVM-032 for wet age-related macular degeneration disease, which is in preclinical stage (Globenewswire, 2018). Adverum’s core capabilities include in-house manufacturing expertise, clinical development and specifically in process development and assay development. Adverum has collaboration agreements with Regeneron Pharmaceuticals to develop, research, and commercialize gene therapy products for ophthalmic diseases and collaboration with Editas Medicine to explore the delivery of genome editing medicines for the treatment of inherited retinal diseases (Globenewswire, 2018).
Adverum Biotechnologies has not been involved in any scandal and not been fined for lack of compliance. It always follows the regulations of U.S. Food and Drug Administration (FDA) while developing its products (Globenewswire, 2018). Stocks of Adverum are fluctuating.
In conclusion it can be said that Adverum Biotechnologies is stronger in developing gene therapy products than the Acer Therapeutics. Stocks of Adverum Biotechnologies are growing with profits.
References:
Bloomberg, (2018). Company Overview of Acer Therapeutics Inc. Retrieved from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=254831560
Globenewswire, (2018). Adverum Biotechnologies Provides 2018 Outlook. Retrieved from https://globenewswire.com/news-release/2018/01/04/1283396/0/en/Adverum- Biotechnologies-Provides-2018-Outlook.html
Week 5
Week 5 E-Activity
Week 6 E- Activity
Acer Therapeutics Inc. and Adverum Biotechnologies,Inc
Have they launched a new product?
Acer Therapeutics Inc.-Merger to create a pre-NDA-stage, Nasdaq-listed, pharmaceutical company focused on the development and commercialization of therapies for serious rare diseases with critical unmet medical need-Combined company, renamed Acer Therapeutics Inc., to commence trading on Nasdaq under the symbol “ACER” on September 21-Concurrent financing of $15.7 million from Acer investor syndicate-Acer plans to file a NDA for its lead product, EDSIVO™, for the treatment of vascular Ehlers-Danlos Syndrome (vEDS) in the first half of 2018-
Have they been involved in a scandal? Have they recently been fined for lack of compliance? Are their stocks fluctuating or holding steady?
Neither of my companies has been recently in a scandal, fined for lack of compliance, and their stocks well, Acer is holding steady but Adverum Biotechnologies, Inc Healthcare – Top 5 Losers as of 11:00 AM (05/04/2018). Losers: CHEK -48%. IVTY -15%. (ADVM -14%). LENS -12%. EYPT -9%.
If nothing has changed, compare different aspects of the companies. Is one stronger or weaker in an area than the other? Is there something on which they could work together?
I believe Acer Therapeutics is stronger in their stocks than Adverum Biotechnologies because of the fact that Adverum Biotechnologies has had a bad report as I stated before and Acer has not. Adverum Biotechnologies is Down 5.33 -1.02 -16.14% based on reports ADVM is still a bargain right now. I’ve used the price-to-book ratio in this instance because there’s not enough visibility to forecast its cash flows, and its earnings doesn’t seem to reflect its true value. The stock’s ratio of 0.6x is currently well-below the industry average of 7.4x, meaning that it is trading at a cheaper price relative to its peers, Although, there may be another chance to buy again in the future. This is because ADVM’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, ADVM’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Were As Acer Therapeutics is up 21.90 -0.15 -0.68%. Headlines about ACER stock have trended somewhat positive recently, Accern Sentiment reports. The research firm ranks the sentiment of news coverage by monitoring more than twenty million news and blog sources. Accern ranks coverage of publicly-traded companies on a scale of negative one to one, with scores nearest to one being the most favorable. Acer Therapeutics earned a media sentiment score of 0.16 on Accern’s scale. They also gave news stories about the biopharmaceutical company an impact score of 44.92 out of 100, indicating that recent news coverage is somewhat unlikely to have an effect on the stock’s share price in the near term.
References:
https://www.marketbeat.com/stocks/NASDAQ/ACER/
https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-advm/adverum-biotechnologies/news/who-are-adverum-biotechnologies-incs-nasdaqadvm-major-shareholders/
Week 6
Week 6 E-Activity
Week 6 E-Activity
Note that there is only minor changes to either company since week 5 E-Activity
(CAMBRIDGE, Mass., Oct. 12, 2017 (GLOBE NEWSWIRE) — Acer Therapeutics Inc., (Nasdaq:ACER), a pharmaceutical company focused on the acquisition, development and commercialization of therapies for serious rare and ultra-rare diseases with critical unmet medical need, today announced the appointments of Mr. Jason Amello and Ms. Michelle Griffin to Acer’s Board of Directors. Mr. Amello and Ms. Griffin were appointed to the Audit Committee, with Ms. Griffin serving as Chairperson.
“We are pleased to welcome Jason and Michelle as the newest members to our Board. Both bring decades of financial and commercial experience and public company operations expertise,” said Stephen Aselage, Chairman of the Board of Acer. “Their insight will add tremendous value to our Board, and we look forward to their contributions as we continue to execute on our development strategy and move towards filing of an NDA for our lead product candidate EDSIVO)
Different aspects of Acer Therapeutics
Acer Therapeutics, Inc. is a pharmaceutical company, which engages in the acquisition, development, and commercialization of therapies for patients with serious rare and ultra-rare diseases with critical unmet medical need. Its products include Edsivo and ACER-001.
Adverum Biotechnologies,Inc 2018 has been a good year for shareholders of gene therapy small-cap Adverum Biotechnologies (ADVM). Since late December 2017, the stock has been trading steadily upwards to a year-high of $7.95 per share on January 30, representing an increase of almost 130% in price. Trading volume has since dropped, with the price plateauing at $7.30. The fundamental driver for these movements has been news concerning the development of the company’s flagship therapy for the treatment of alpha-1 antitrypsin (A1AT) deficiency, a rare genetic disorder that causes lung and liver disease (the most common being premature emphysema). The gene therapy candidate itself is known as ADVM-043.
Over the course of the last few months, Adverum has provided a steady stream of good news for its investors. First came the announcement that the company had begun patient enrollment in its ADVANCE Phase 1/2 clinical trial, designed to evaluate safety and protein expression in human subjects. Secondly, in late January, the company announced that it was extending its research collaboration with Editas Medicine (NASDAQ:EDIT), a biotechnology firm specializing in the use of the CRISPR gene-editing tool. Investors rightly interpreted this as a vote of confidence and duly pushed ADVM higher. Finally, in late February, the independent Data Monitoring Committee, evidently satisfied with the preliminary safety data provided by the trial, recommended that the company proceed with a second cohort of patients.
Given that Adverum has more than doubled in price since the announcement that the ADVANCE study was going to go ahead, it is tempting to interpret the recent plateau as a sign that the market has already priced in the full potential of the company. However, there are reasons to believe that we are dealing with a diamond in the rough that can go much higher.
Different aspects of Adverum Biotechnologies,Inc
We are a clinical-stage gene therapy company targeting unmet medical needs in serious rare and ocular diseases. Our robust pipeline includes product candidates designed to treat rare diseases alpha-1 antitrypsin (A1AT) deficiency and hereditary angioedema (HAE), as well as wet age-related macular degeneration (wAMD).
Leveraging our next-generation adeno-associated virus (AAV)-based directed evolution platform, Adverum generates product candidates designed to provide durable efficacy by inducing sustained expression of a therapeutic protein. We are well positioned with core capabilities, which include clinical development and in-house manufacturing expertise, specifically in process development and assay development.
Our team has extensive clinical development experience and is laser-focused on advancing novel gene therapies for patients with rare and ocular diseases.
English Français
https://globenewswire.com/Search?runSearc
Week 7
Week 7 E-Activity
Share updates about your companies.
There are few to none technical positive signals at the moment.
Acer Therapeutics Inc. Adverum Biootechnologies,INC
B holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $18.78 and $18.92. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Monday May 07, 2018, which indicates further falls until a new bottom pivot has been found. Volume fell along with the price during the last trading day, which is technical positive. One should, however, note that this stock may have low liquidity in periods, which increases the general risk
Adverum Biootechnologies,INC In May 2018, Adverum announced long-term preclinical efficacy data on ADVM-022 gene therapy in a non-human primate model of wet age-related macular degeneration (wAMD). After 13 months, a single intravitreal injection of ADVM-022 was found to be safe and statistically significant (p
