Lemonade Inc

Lemonade Inc (NYSE: LMND) provides insurance services related to home, pet, and life insurance. The Company is presently available in the United States, the Netherlands, Germany, and France.

Investment Rationale – WATCH at USD 80.90

• In Q2 FY21, Lemonade reported a decline in online insurer’s sales and therefore, losses widened compared to the same quarter the last year.
• During Q2 FY21, customer count surged 29%, reflecting higher average policy values.
• The resurgence of Covid-19 cases with delta variant can create operational difficulties and cause a shortage of labour.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 88.73), reflecting a bearish price momentum.
• In the last six months, LMND’s s price has fallen around 42.94%, reflecting significant underperformance against the benchmark, NYSE index.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the worsened losses, gloomy outlook, macroeconomic instabilities, and bearish price trend, we have given a “WATCH” recommendation on Lemonade Inc at the closing market price of USD 80.90 (as of 6 August 2021), while we look forward to reviewing how the Company will minimize its net losses.

Epizyme Inc

Epizyme Inc (Nasdaq: EPZM) is a commercial stage biopharmaceutical entity, focusing on treating cancer and other serious diseases through novel epigenetic medicines.

Investment Highlights – WATCH at USD 6.47

• On 9 August 2021, Epizyme announced that its Chief Executive Officer, Robert Bazemore decided to step down from his position; however, he will continue to serve as an advisor to the Board for the next twelve months to ensure a smooth transition.
• In Q2 FY21’s business update (for the quarter ended 30 June 2021), the Company reported
  • Reduced cash position of US$244.0 million as of 30 June 2021 from US$298.9 million at the end of Q1 FY21.
  • Net loss widened for the second quarter to US$64.4 million from US$58.5 million in Q2 FY20.
• On 8 August 2021, Epizyme announced a collaboration with HUTCHMED, to commercialize TAZVERIK® in Greater China.
• The speculations regarding the Federal Reserve reducing its pandemic-era stimulus, can create significant market volatility.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 6.99), reflecting a bearish price momentum.
• In the last year, EPZM' s price has fallen around 49.59%, reflecting significant underperformance against the benchmark Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, bearish price momentum, and macroeconomic uncertainty, we have given a “WATCH” stance on Epizyme Inc at the closing price of USD 6.47 (as on 6 August 2021), while we look forward to reviewing how the Company operates in the near term.

Karyopharm Therapeutics Inc

Karyopharm Therapeutics Inc (Nasdaq: KPTI) is a pharmaceutical entity, focusing on treating patients with cancer and other serious diseases.   

Investment Rationale – WATCH at USD 5.52

• On 5 August 2021, KPTI unveiled its Q2 FY21 results for the three months ended 30 June 2021, and reported
  • A decline in total revenue and operating expenses year-on-year; however, net loss significant widened from US$46.4 million in Q2 FY20 to US$53.6 million in Q2 FY21.
  • The cash position also reduced to US$239.3 million at the end of Q2 FY21, from US$276.7 million as of 31 December 2020.
• During H1 FY21, the Company has secured additional funding of US$60 million, expanded global access to XPOVIO, and acquired investigational Interleukin-12 program from Neumedicines Inc. It should help the Company in expanding its capabilities.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 8.27), reflecting a bearish price momentum.
• In last 1-year, KPTI’s s price has fallen ~63.80%, reflecting significant underperformance against the benchmark, Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, reduced liquidity, and bearish price momentum, we have given a “WATCH” stance on Karyopharm Therapeutics Inc at the closing price of USD 5.52 (as on 6 August 2021), while we look forward to monitoring how the Covid-19 pandemic will impact the progress on its pipeline initiatives.

Liminal BioSciences Inc

Liminal BioSciences Inc (Nasdaq: LMNL) is a clinical-stage biopharmaceutical entity focusing on commercializing novel treatments for patients suffering from diseases with high unmet medical needs.

Investment Rationale – WATCH at USD 2.86

• In Q1 FY21, the Company didn’t generate any revenue, and it reported a net loss of US$20.9 million. Also, there was a substantial increase in net finance cost from US$1.5 million in Q1 FY20 to US$2.4 million in Q1 FY21, due to the long-term debt issuances in Q3 FY20.
• On 9 July 2021, LMNL announced the disinvestment of its plasma-derived therapeutics manufacturing subsidiary to Kedrion S.p.A. for the consideration of US$5 million.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 3.19), reflecting a bearish price momentum.
• In the last twelve months, LMNL’s s price has fallen around 84.19%, reflecting significant underperformance against the Nasdaq index benchmark.

One Year Share Price Chart

   (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the absence of revenue, history of net losses, bearish price momentum, and challenging business environment, we have given a “WATCH” recommendation on Liminal BioSciences Inc at the closing market price of USD 2.86 (as of 6 August 2021), while we look forward to reviewing how the Company will navigate through ongoing Covid-19 pandemic induced challenges.

Greenlane Holdings Inc

Greenlane Holdings Inc (Nasdaq: GNLN) deals in premium cannabis accessories, specialty vaporization products, and child-resistant packaging through online e-Commerce platform as well direct to consumers.

On 17 August 2021, GNLN expects to release its Q2 FY21 results.

Investment Highlights – WATCH at USD 3.09

• In the last financial update for Q1 FY21, sales slightly increased by 0.6% year-on-year; however, and net loss was reduced by 53.9% year-on-year.
• As of 31 March 2021, cash balance reflected a decrease of around US$30.4 million from the closing position of FY20.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 3.53), reflecting a bearish price momentum.
• In the last year, GNLN’s s price has fallen around 13.45%, reflecting significant underperformance against the benchmark Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, unfavourable technical stance, and macroeconomic uncertainty, we have given a “WATCH” stance on Greenlane Holdings Inc at the closing price of USD 3.09 (as on 6 August 2021), while we look forward to reviewing how the Q2 FY21 results will be.   

*The reference data in this report has been partly sourced from REFINITIV.