Vyne Therapeutics Inc

Vyne Therapeutics Inc (NASDAQ-GS: VYNE) is a specialty pharmaceutical Company. The Company is focused on the development and commercialization of proprietary therapies to address dermatology related issues.

Investment Highlights - Vyne Therapeutics Inc – Avoid at USD 6.37

• The Company generated good revenue in the financial year 2020, while remained in the development stage and has shown an increased loss.
• In the last six months, the Company delivered a negative return of ~17.49% and delivered lower returns compared to the benchmark Index.
• From the technical standpoint, shares were trading below the short-term support level of 20-day simple moving average prices of USD 7.03, which reflects a downtrend in the stock and can decline further.

Key Risks

• The covid-19 outbreak has resulted in disruptions in clinical trials which will have a negative impact on the Company’s performance.
• Any failure to meet the quality and comply with regulatory laws could lead to increased cost and even recall or suspension of products.

Financial Highlights – FY2020 (31 December 2020) (released on 4 March 2021)

(Source: Annual Report, Company Website)

• For the financial year 2020, driven by higher product sales, license revenues and royalty revenue, the revenue increased to $20,993 thousand.
• Due to higher operating expenses, the operating loss and the loss of the period increased in the financial year 2020.
• The cash balance as on 31 December 2020 increased to $57,563 thousand (31 December 2019: $43,759 thousand).

One Year Share Price Chart

(Source: Refinitiv, Thomson Reuters)

Conclusion

The Company has shown a decline in financial performance in the financial year 2020. The Company is in the development stage and hence rely on grants and cash balances to carry on all the business activities. The Company needs to manage operating expenses more effectively unless it will have negative impact on future financial and operational performance. VYNE generated revenue for the first time in 2020. The Bottom-line performance has declined, while profitability remained in the negative zone. Vyne Therapeutics operations are impacted by the outbreak of covid-19 pandemic and have been focusing on strengthening its balance sheet and reducing its costs to preserve cash. The stock made a 52-week low and high of USD 4.40 and USD 13.20, respectively.

Based on the above rationale, we have given an “Avoid” recommendation for Vyne Therapeutics Inc at the closing price of USD 6.37 (as on 8 April 2021), with support from few catalysts, needs to be evaluated at a later stage such as benefits of started commercial product sales.

Oragenics Inc

Oragenics Inc (AMEX: OGEN) is a US-listed healthcare Company. The Company is focused on creating TerraCoV2 immunization product to combat coronavirus pandemic and further development of effective treatments for infectious disease.

Investment Highlights - Oragenics Inc – Expensive at USD 0.8877

• The Company remained in the development stage and did not generate any revenue in FY2020, and profitability remained in the negative zone.
• As per valuation metrics, the Price/Earnings multiple of the Oragenics Inc is currently higher as compared to the corresponding multiple of the Pharmaceuticals & Medical Research industry, reflecting overstretched valuations.
• In the last one month, the Company delivered a negative return of ~28.98% and delivered lower returns compared to the benchmark Index.
• From the technical standpoint, shares were trading below the short-term support level of 20-day simple moving average prices of USD 0.9389, which reflects a downtrend in the stock and can decline further.

Key Risks

• Failure in cybersecurity and a critical data breach could hamper the operation as well as the reputation of the company.
• The Company’s operations are impacted by risks related to market trends, political change and change in the regulatory authority.

Recent News

On 9 March 2021, Oragenics announced that it has signed material transfer agreement with Biodextris Inc. As per the agreement, the Company will use three intranasal mucosal adjuvants in Terra CoV-2 vaccine to enhance their immunogenicity.

Financial Highlights – FY2020 (31 December 2020) (released on 1 March 2021)

(Source: Annual Report, Company Website)

• For the financial year 2020, the Company did not generate and revenue and witnessed an increase in operating expenses.
• The Company reported an increase in net loss to $26,430,699 in FY2020, due to higher operating expenses incurred.
• The Company reported cash balance of $17,639,575 as on 31 December 2020

One Year Share Price Chart

(Source: Refinitiv, Thomson Reuters)

Conclusion

The Company has shown a decline in financial performance in the financial year 2020. The Company is in the development stage and hence rely on grants and cash balances to carry on all the business activities, while profitability remained in the negative zone. Oragenics needs to manage its operating expenses unless it results in further deterioration in financial performance in the coming years. Due to the impact of the covid-19 pandemic, the Company experienced significant disruptions to business, manufacturing supply chain, financial condition, preclinical research to date and clinical trials. The stock made a 52-week low and high of USD 0.36 and USD 2.09, respectively.

Based on the factors as highlighted above, we believe the stock of Oragenics Inc is “Expensive” at the closing price of USD 0.8877 (as on 8 April 2021), with support from few catalysts needs to be evaluated at a later stage such as effective management of operating expenses.

Disclaimer

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