Principia Biopharma down on bearish Kerrisdale report

Thinly traded Principia Biopharma (PRNB -8.5%) is down, albeit on a modest 140K shares, on the heels of a bearish report from Kerrisdale Capital who is short the stock and sees 80% downside.

The private investment manager cites the company’s bullish valuation and the risk that BTK inhibition will not work well in autoimmune disorders. It says data on PRN1008 in pemphigus and immune thrombocytopenia are inferior to standard-of-care therapies.

https://seekingalpha.com/news/3534731-principia-biopharma-down-9-on-bearish-kerrisdale-report

Cleveland BioLabs joins coronavirus-stoked frenzy

Thinly traded nano cap Cleveland BioLabs (CBLI +158.3%) is, yet another, company caught up in the market’s stampede into stocks that could, even remotely, benefit from the coronavirus outbreak, still largely confined to China.

The company is principally focused on biodefense and cancer, but it is has a vaccine adjuvant called SA-702. An adjuvant helps a vaccine work better, inducing a more robust immune response.

https://seekingalpha.com/news/3534713-cleveland-biolabs-joins-coronavirus-stoked-frenzy-up-158

Lianluo Smart up 71% on coronavirus speculation

Thinly traded nano cap Lianluo Smart Limited (LLIT +70.8%) jumps on a robust 58x surge in volume, riding the wave of intense buying in companies that may benefit from the coronavirus outbreak.

The China-based medical products company develops wearable respiratory devices.

https://seekingalpha.com/news/3534721-lianluo-smart-up-71-on-coronavirus-speculation

Vir Biotech up 21% on coronavirus buying

Thinly traded Vir Biotechnology (VIR +20.9%) is up up on almost a 4x surge in volume, albeit a relatively modest 514K shares, as the animal spirits continue to sweep up companies that may be positioned to benefit from the coronavirus outbreak.

The company has four technology platforms that it is leveraging to develop treatments for infectious diseases, including influenza and tuberculosis.

https://seekingalpha.com/news/3534723-vir-biotech-up-21-on-coronavirus-buying-frenzy

Outlook for Fed easing increases amid virus concerns

Traders are boosting the odds that the Fed will ease monetary policy by the end of the year amid increased concern over the spread of the coronavirus, Bloomberg reports.

Implied rates on fed funds futures that expire through August 2021 slid by as much as 9 basis points with a quarter-point cut priced in by the end of October; a few weeks ago, the lower rate wasn’t expected until early 2021.

David Robin, a strategist at TJM Institutional Securities Services, observes a “shift as ‘risk off’ superceded ‘policy path pricing’ as the dominant pricing driver.” He wrote in a note: “This particular ‘risk-off event’ is extremely difficult to quantify, both subjectively and objectively.”

The central bank’s monetary policy-setting arm meets on Tuesday and Wednesday; the FOMC is expected to keep the target rate range unchanged.

The Fed is also expected to adjust the interest rate on excess reserves (IOER) and the rate on its reverse repo program (RRP) 5 basis points higher to help maintain the funds rate within its target range.

2-year Treasury yield falls 5 basis points to 1.44%; 10-year yield sinks almost 8 bps to 1.61%.

ETFs: TLT, TBT, TMV, EDV, TMF, VGLT

https://seekingalpha.com/news/3534726-outlook-for-fed-easing-increases-amid-virus-concerns

Shanghai Stock Exchange says market will re-open on February 3

Shanghai Stock Exchange said the market will resume trading on Feb. 3, following China’s weekend decision to extend the week-long Lunar New Year holiday by three days to Feb. 2 in a bid to slow the spread of the coronavirus.

https://www.marketscreener.com/HOPE-BANCORP-INC-30419512/news/Shanghai-Stock-Exchange-says-market-will-re-open-on-February-3-29896240/

Neurometrix revenue drops

NeuroMetrix, Inc., (Nasdaq: NURO) today reported financial and business highlights for the quarter and year ended December 31, 2019.

The Company develops and commercializes diagnostic and therapeutic neurostimulation-based medical devices. The Company has three commercial products.  DPNCheck^® is a point-of-care diagnostic test for peripheral neuropathies including diabetic peripheral neuropathy (DPN).  ADVANCE™ is a point-of-care diagnostic test primarily used for carpal tunnel syndrome.  Quell^® is a wearable neurostimulation device that is available over-the-counter for symptomatic relief of chronic pain.
Q4 2019 Highlights:

• DPNCheck posted Q4 2019 revenue of $0.9 million, an increase of 51% over the prior year quarter.  The improvement came in the US Medicare Advantage market, which was consistent with strong performance of this segment throughout 2019. In the full year 2019, Medicare Advantage revenue growth was 25% over the prior year.
• The Company made important progress on its second generation DPNCheck system which is planned for commercial launch in Q4 2020.  This product should position the DPNCheck business for long-term revenue growth.
• ADVANCE revenue was $280 thousand in Q4 2019, essentially flat with $300 thousand in the prior year quarter.  The Company has not been actively marketing ADVANCE for the past five years but plans to evaluate renewed R&D and marketing investment given the ongoing market demand.
• Reflecting substantial reductions in 2019 advertising spending, Quell revenue decreased to $0.5 million in Q4 2019 from $2.8 million in the prior year quarter. The Company emphasized sales profitability over volume while further refining the commercial strategy.
• The Company continued to provide engineering support for Quell technology as part of its collaboration with GlaxoSmithKline.
• The Company maintained its investment in the Quell clinical development program which is intended to support ongoing Quell promotion, expand the Quell chronic pain market and identify new clinical applications for Quell technology.  Several clinical program announcements are expected during 2020.
• The Q4 2019 gross margin on product sales was $1.1 million, a 62.2% margin rate which was up 15 percentage points over the prior year quarter. The Q4 2019 net loss of $1.1 million was a 60% improvement over Q4 2018.

“Although we were disappointed by the overall drop in revenue from the year-ago period, we expected this outcome given our large reduction in operating expenses, attention to improved gross margins and overall focus on long term growth and profitability.  We believe we made important progress against these objectives. We experienced strong demand for DPNCheck during the fourth quarter which is typically our slowest period. This momentum should carry into 2020 as new Medicare Advantage accounts come on board and we expect a rebound in international sales.  Our enthusiasm for the DPNCheck business is reflected in our investment in the next generation device to be launched in late 2020,” said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. “Our Quell business is focused on cost-efficient advertising combined with an exclusively direct-to-consumer model via our QuellRelief.com website and exploration of new markets. We believe this technology is unique and represents an attractive long term opportunity for the Company.   Finally, we are actively engaged with the Federal Trade Commission (FTC) to resolve the previously disclosed matter which is centered on earlier Quell advertising.”
https://www.biospace.com/article/releases/neurometrix-reports-q4-and-full-year-2019-financial-results/