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Friday, August 11, 2023

Ultragenyx Sued by Henrietta Lacks’ Family in Second HeLa Cell Line Lawsuit

 After reaching a settlement with Thermo Fisher Scientific earlier this month, the family of Henrietta Lacks is again suing a company. The attorneys for Lacks’ estate filed a lawsuit Thursday against Ultragenyx Pharmaceutical over the use of their matriarch’s immortal cell line. 

The legal complaint accuses Ultragenyx of using Lacks’ body as a “mere manufacturing tool” and staking claim to her genetic material to commercially manufacture adeno-associated virus vectors for gene therapies. The biopharma has reaped “huge profits that would never have been possible without Henrietta Lacks’ cells.” 

The cells in question were taken from Lacks without her knowledge or consent during cervical cancer surgery in the 1950s—a time when it was not illegal to do so. Dubbed the HeLa cell line, the cells were the first line discovered to be immortal, proliferating in the lab instead of dying off. The use of the cells has led to the unlocking of the human genome and played a crucial role in vaccine development, including the COVID-19 shot. 

California-based Ultragenyx focuses on rare and ultra-rare genetic diseases. The company’s technology platforms leverages the HeLa line to produce AAV vectors on a “massive scale” to transport gene therapies. It also uses these vectors to manufacture gene therapies for other companies. Ultragenyx’s website lists partners like Daiichi-Sankyo, Regeneron and multiple universities.  

“Ultragenyx’s choice to continue utilizing HeLa cells despite the cell line’s origin and the concrete harm it inflicts on the Lacks family can only be understood as a choice to embrace a legacy of racial injustice embedded in the U.S. research and medical systems,” said the family’s civil rights attorney Ben Crump in a statement.   

Indeed, many Black Americans have serious reservations about medical research. A 2022 Pew Research Center survey showed 55% of Black Americans felt misconduct by medical research scientists was a moderate or very big problem. 

Thermo Fisher was the first company targeted in court by the Lacks family’s attorneys. Filed in October 2021, the lawsuit was settled earlier this month for an undisclosed amount.  

The Ultragenyx lawsuit charges the company with “unjust enrichment” and “aims to help the Lacks family reclaim their ancestor’s story and receive the justice and compensation they deserve.” In addition to asking the court to reward compensation for the commercialization of the cells, the suit is also seeking to block the company from continuing to use the HeLa line without permission. 

At the time of the Thermo Fisher lawsuit, Crump told NPR the biopharma “shouldn’t feel too alone because they’re going to have a lot of company soon.”  

Ultragenyx has not yet filed a response to the lawsuit.  

https://www.biospace.com/article/ultragenyx-hela-lawsuit-placeholder/

Semler Scientific Up After Earnings Beat

 Semler Scientific (SMLR) said after close Thursday that it earned $0.75 per share in quarter two 2023.


On the revenue line, the company reported $18.6 million, beating estimates by $2.6 million.

In the same quarter a year ago, the company earned $0.51 per share on revenue of $14.8 million.

The stock is up 15.21% to $27.06 after the report.

Semler Scientific's earnings expanded faster than revenues, signaling widening profit margins.


Semler Scientific Inc is a US-based company that is engaged in providing technology solutions to improve the clinical effectiveness and efficiency of healthcare providers. It focuses on developing, manufacturing, and marketing proprietary products and services that assist customers, including insurance plans, physicians, and risk assessment groups, in evaluating and treating chronic diseases. The company markets its vascular-testing product under the QuantaFlo brand, which is a four-minute in-office blood flow test.

Wainwright Maintains Buy Rating for Cabaletta

 HC Wainwright & Co. has decided to maintain its Buy rating of Cabaletta Bio 

 and raise its price target from $15.00 to $17.00.

Shares of Cabaletta Bio are trading up 9.86% over the last 24 hours, at $13.48 per share.

A move to $17.00 would account for a 26.11% increase from the current share price.

About Cabaletta Bio

Cabaletta Bio Inc is a clinical-stage biotechnology company focused on the discovery and development of engineered T cell therapies, and exploring their potential to provide a deep and durable, perhaps curative, treatment, for patients with B cell-mediated autoimmune diseases. Its proprietary technology utilizes Chimeric AutoAntibody Receptor, or CAART cells that are designed to selectively bind and eliminate only specific B cells that produce disease-causing autoantibodies, or pathogenic B cells, while sparing normal B cells. Its CABA platform encompasses two strategies CARTA (chimeric antigen receptor T cells for autoimmunity) and CAART (chimeric autoantibody T cells) has the potential to be applied across a broad range of autoimmune diseases.

https://www.benzinga.com/analyst-ratings/23/08/33756513/hc-wainwright-co-maintains-buy-rating-for-cabaletta-bio-heres-what-you-need-to-know

Why SmileDirectClub Stock Was Plummeting

 Shares of SmileDirectClub (SDC 9.90%) were plunging today, down 19.7% as of 3:15 p.m. ET, following the release of the company's second-quarter earnings report last night.

While there were actually some mild positives within the company's profit trajectory and guidance, SmileDirect missed both revenue and profit estimates. Perhaps more dire, the company is quickly running out of cash and has a heavy debt burden. While management is hopeful to get to cash-flow positivity by the fourth quarter, investors appear skeptical it will be able to pull it off.

In the second quarter, SmileDirect reported revenue of $101.8 million, down 19.1% year over year, and a loss per share of $0.13, both of which missed analyst estimates.

Ongoing losses and cash burn really aren't good, especially since the company only has a little less than $29 million in cash on its balance sheet, compared with $863.4 million in debt.

In the release, the company noted that CEO David B. Katzman has provided it with a $10 million revolving credit facility to meet its short-term capital needs as SmileDirect aims to restructure its balance sheet.

That "restructuring" could potentially entail a dilutive equity raise to get cash and maybe pay off debt, which would be especially painful given that SmileDirect's stock has plunged to just $0.61 per share as of this writing, down from $23 at its 2019 initial public offering.

Things look pretty dire for SmileDirect, but there is a ray of hope. While the losses look ugly, they have been trending in the right direction. Encouragingly, Katzman forecasts the company will achieve positive adjusted earnings before interest, taxes, depreciation, and amortization in the third quarter and positive free cash flow in the fourth quarter. It also says something that he is putting his own personal money somewhat at risk, albeit in a revolving credit facility.

The company also rolled out its AI-powered SmileMaker Platform, a mobile scanning app, in May in the U.S., after testing it in Australia late last year. The app allows customers to instantly see their potential transformation after scanning their mouth and bite with a smartphone. That simple on-ramp for customers has the potential to reduce friction and get revenue going back in the right direction.

Still, while SmileDirect's aligners are a lower-cost option than traditional braces, they are still a high-ticket item at nearly $2,000 on average. So the current high interest rate environment is still a challenge.

The new app and depressed stock price offer the potential for home-run gains, but with economic uncertainty abounding and a potential equity raise in the near future, SmileDirect is an extremely risky bet that could also go to zero, or close to it.

https://www.fool.com/investing/2023/08/09/why-smiledirectclub-was-plummeting-today/

Thorne Healthtech Inc Up After Earnings Beat

 Thorne Healthtech Inc (THRN) reported upside earnings and revenue..


Analyst expectations for Thorne Healthtech Inc earnings per share (EPS) were at $0.06, with the company surpassing those estimates with a reported EPS of $0.15, leading to a positive surprise of $0.09 per share (150%). Thorne Healthtech Inc's earnings rose 400% year-over-year as the firm reported an EPS loss of $0.05 per share in its year-ago quarter. The positive annual growth shows the Consumer Defensive company is performing well amid recent economic conditions.

Revenues were upbeat at $72.7 million. That is an increase of 29.69% in revenues from the year-ago report and is 6.22% higher than consensus estimates set at $68.5 million.

Wainwright Reaffirms Positive Outlook on Vor Biopharma

 On August 11, 2023, Swayampakula Ramakanth, an analyst at HC Wainwright & Co., has reaffirmed a positive outlook on Vor Biopharma (NASDAQ:VOR), giving it a Buy rating and a price target of $17.5. Ramakanth’s assessment is based on a comprehensive evaluation of the company’s performance and future potential. Notably, the average 12-month stock price forecast for Vor Biopharma as of June 12, 2023, stands at $17.06, indicating a substantial projected increase of 445.05%. This optimistic sentiment is further supported by a consensus rating of Buy from a panel of seven analysts.

https://beststocks.com/analyst-reaffirms-positive-outlook-on-vor-bio/

Coliseum Capital Management, LLC Boosts Stake in ModivCare

 On August 10, 2023, Coliseum Capital Management, LLC (TradesPortfolio) added 2,264,129 shares of ModivCare Inc to its portfolio at a trade price of $35.74 per share. This transaction significantly impacted the firm's portfolio by 5.78%, increasing its total holdings in ModivCare Inc to 4,162,924 shares. This represents 10.62% of the firm's portfolio and 29.36% of ModivCare Inc's total shares.

https://www.gurufocus.com/news/2063630/coliseum-capital-management-llc-boosts-stake-in-modivcare-inc