AVXS – AveXis
About: a clinical-stage gene therapy company, engages in developing and commercializing treatments for patients suffering from rare and life-threatening neurological genetic diseases.
- The 1st ever gene therapy study for the treatment of SMA Type 1
- Designed to address the monogenetic root cause of SMA by replacing the lost or defective primary SMN1 gene with a fully functioning human SMN gene
- Accepted into the European medicine’s agency prime program that enhance support for the development of medicines which is similar to FDA.
SMA Type 1:
- Is a devastating orphan disease that results in motor neuron loss and progressive muscle weakness
- One in 10,000 live births
- SMA is the most common genetic cause of infant deaths
- Rapidly progressive and devastating
- The average lifespan of a child with SMA Type I is only 8 months of age
Phase 1 result:
- one-time infusion of AVXS-101 appears to be generally tolerated with a favorable safety profile
- indicate a potential for clinically transformative effect on the event free survival
- rapid and increase in motor function
- achievement of motor milestone never seen in the history of this disease.
Plans for 2017: To participate in a chemistry manufacturing and control Type B meeting with the FDA in May.
- We are positive on OLED being widely adopted with production capacity being doubled and penetration rate in SmartPhone market expected to rise.
- We are cautious that Dermira’s 2 Phase 3 drugs (treatment for excessive sweating and plaque psoriasis) which are for regulatory approval face multiple competitors.
- We like FMI because it is a play on using genetic profiles to treat cancer. Currently it is the first-mover in applying for national Medicare coverage to allow more people to use its products.
- We believe SWIR is a play on the connected cars trend, however we are cautious as it faces numerous competitors and its products may soon be commoditized as connected cars become a norm and not a luxury in the future.
- Trade Desk provides a self-service platform (DSP) that helps ad agencies optimize their bidding for programmatic ad inventory.
- Multiple growth drivers from new and rapidly growing advertising channels:
- Mobile (30% of sales)
- Video (25%)
- Programmatic TV (0%)
- International (10%)
These companies are about to experience a secular growth driven by 3 large catalysts:
- China (magic word)
- Upgrade to 100G technology by telecom firms in the U.S. and beyond
- Cloud-computing data centers packed with computer servers
- Ex. Amazon, Google, and Facebook
A lot of these companies are still being priced like a cyclical company, we believe that as the secular growth continues, they will rerate.
Under Armour, Inc. (UA)
Market Cap: $12.2 Bil
Industry: Sports Apparel
- The Athletic Apparel space is entering a period of over saturation, with the space becoming too crowded. A key clue is the two quarter decline in sales of their biggest supplier.
- The performance basketball segment is experiencing intensifying competition, as Nike cuts prices and Adidas’ success is driving demand for more classics and retro shoes.
- Management exits have made us wary of whether the company can live through the current tough environment.
- Valuations are not pricing in the currently tough environment and potential lower margin assumptions due to the intensifying bid for endorsements and sponsorship.
- Chart is breaking down from a long consolidation with volume
- Relative weakness given recent market strength due to Trump win
Under Armour has four main earnings drivers: all of which are currently seeing pressure. Continue reading