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Global Blood Therapeutics: Raining In The Desert With VoxelotorGlobal Blood Therapeutics: Raining In The Desert With Voxelotor BioSci Capital Partners Blog / SA / Jun. 28, 2019 https://seekingalpha.com/instablog/17806842-biosci-capital-partners/5321242-global-blood-therapeutics-raining-desert-voxelotor Summary The financial market can hold unrealistic expectations for certain drug innovators. That difficulty for timid shareholders translates into an excellent investment opportunity for the bold. Raining over the barren desert of sickle cell disease, Voxelotor demonstrated its prowess in the HOPE trial via improvement in hemoglobin, reticulocytes count, indirect bilirubin, and painful crisis. As the first of its kind, voxelotor modifies the disease course rather than conforming to the unrealistic expectation (i.e. a cure). In its whim, the market dismisses voxelotor's unprecedented progress. The wise investor recognizes that success is a process of continually seeking answers to new questions. - Sir John Templeton It's interesting to observe that the financial community sometimes demands companies to innovate drugs that deliver a cure. In reality, many chronic conditions can only be managed with disease-modifying drugs. That is not to mention that a cure will ultimately wipe out the market potential of a drug. And, it'll render an investment obsolete as well as decimating innovation. As such, setting unrealistic expectation is a sure way to the highway of hopeless defeat. That being said, the market dynamics centering Global Blood Therapeutics (GBT) exemplify the aforesaid phenomenon. Accordingly, it seems that the market is expecting GBT's lead drug coined voxelotor to generate unreal efficacy for sickle cell disease. As a ramification, the shares did not "gap up" despite the reporting of robust Phase 3 data for voxelotor. You can argue that there is a gradual rally. Be that as it may, the appreciation is quite meager in the grand view of voxelotor's blockbuster prospect. Instead of feeding the frustration associated with arrested profit development, you can take this opportunity to earn substantial gain. In this research, I'll present a fundamental analysis of GBT and share with you my strategy to capture gains for this growth equity. Figure 1: Global Blood Therapeutics chart (Source: StockCharts) About The Company As usual, I'll deliver a brief corporate overview for new investors. If you are familiar with the firm, I suggest that you skip to the subsequent section. Operating out of San Francisco California, GBT is focused on the innovation and commercialization of novel medicines to serve the strong unmet needs in the blood disorder, i.e. sickle cell disease ("SCD"). As a genetic disorder of the blood heme (i.e. hemoglobinopathy), SCD induces red blood cells (“RBC”) to form a sickle shape in oxygen deficiency states. The deformed RBCs clogged up blood vessel, thus wreaking havoc on the patient through various complications. In the process, these rogue RBCs are destroyed which leads to an inadequate level of a blood protein known as hemoglobin. As the oxygen-carrying hemoglobin plummets, the patient suffers from oxygen deprivation. Asides from the pain, it's like the very air is sucked out of their lungs. And, the vicious cycles of complications are amplified. Ultimately, patients afflicted by SCD suffer from the recurring and extremely-painful vaso-occlusive (“VOC”) crises.... < more at BioSci website > |
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