Natural-Killer Cell Treatment Developer FATE Therapeutics & Nasdaq Fly To Record New Highs During Monday’s Market Session

San Diego-based Fate Therapeutics (NASDAQ: FATE) closed at $83.77/share up a whopping +37.8% prior to reaching a new all-time high of $89.92 today. FATE now enjoys a $7.321 Billion market cap!

As many of you know, we started covering FATE +3 years ago when the stock was trading in the $3-$4 range. Yes, what an an amazing ride it has been, but today was particularly satisfying and profitable and hopefully you participated. If you do not know much about Fate Therapeutics please know that it is a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders. 

On Sunday, Fate presented a patient case study from the Company’s Phase 1 clinical trial of FT596, its universal, off-the-shelf, CD19-targeted chimeric antigen receptor (CAR) natural killer (NK) cell product candidate, at the 62nd Annual Society of Hematology Annual Meeting and Exposition and the street loved it. NK cells are the body’s first line of defense against viral infections and cancerous cells with an innate ability to rapidly seek and destroy transformed cells. NK cell therapy has the potential to 1) target multiple pathogenic antigens with measurably more efficient cytotoxicity, 2) be better controlled to reduce risk of cytokine storms and 3) be produced from a variety of sources without relying on patient-specific immune cells. 

Dr. Wayne Chu, Senior Vice President, Clinical Development of Fate Therapeutics stated, “The safety, pharmacokinetics and clinical activity observed following both the first and second single-dose treatment cycles of FT596 are compelling, especially when considering that the administered cell dose was significantly lower than the recommended cell dose of FDA-approved autologous CD19-targeted CAR T-cell therapies and that the heavily pre-treated patient was refractory to last prior therapy. We are excited the CAR component of FT596 has shown clinical activity at this low dose level, and we continue to enroll patients in dose escalation with FT596 as a monotherapy and in combination with rituximab. Our recent Phase 1 clinical data with FT516 in combination with rituximab, which demonstrate the potential of our novel hnCD16 Fc receptor to potentiate ADCC and drive complete responses, support our belief that the multi-antigen targeting functionality of FT596 may offer best-in-class potential for patients with B-cell malignancies.” 

On the back of this news, many other gene editing related stocks also had amazing days i.e. San Francisco-based Nkarta, Inc. (NKTX), the only other public NK Cell firm, was up +21.69% as it closed at $48.31 and now enjoys its own $1.57 billion market cap. We also recently invested in a bridge funding round for Cytovia Therapeutics www.cytoviatx.com, which I believe will be the 3rd NK Cell company that goes public. Cytovia has the former head of the FDA, Michael Friedmen, MD. on its board along with a number of other prominent Logos and scientists and is not too far behind in the clinic from Fate Therapeutics. “Precision NK therapies have the potential to revolutionize cancer treatment with unsurpassed safety and efficacy. We are excited to bring NK Cell Engager antibodies and CAR-NK cell therapies to initial clinical trials starting in 2021, moving towards broad patient access to cancer-defeating cures.” – Dr. Daniel Teper, Cytovia Therapeutics CEO. Please feel free to give me a ring to learn more.

TODAY’s MARKETS

The S&P 500 ticked slightly lower closing at 3,691.96 (-.19%) as the recently white-hot energy sector took at 2.4% hit today as oil prices pulled back 1% to end at $45.77/bbl. The communication services & the utilities sectors led all sectors with respective +.6% moves. The Dow 30 closed at 30,069.79 (-.49%) & the small caps on the Russell 2000 finished at 1,891.25 (-.06%). On the other hand, the Nasdaq moved to a record high closing at 12,519.95 (+.45%) on the strength of the information technology sector which moved up .3% today. 

MACRO

The macroeconomic scheduled delivered the Consumer credit report which confirmed a rise by $7.2B in October.

AROUND TECH

The heavily weighted & popular FAANGs ended mixed as follows:  Apple (AAPL) ($123.75, +1.23%), Amazon (AMZN) ($3,158, -.14%), Alphabet (GOOG) ($1,819.48, -.47%), Facebook (FB) ($285.58, +2.1%) & Netflix (NFLX) closed at $515.78/share, +3.51%.  

Shares of Elon Musk’s Tesla (TSLA) closed at $641.76/share, +7.13%. It received Buy recommendation from Goldman Sachs that included a $780/share PT. Chinese EV concern NIO Limited (NIO) closed at $45.11/share up 4.81%.  

Leading provider of zero emission hydrogen engines and fueling solutions, Plug Power (PLUG), closed $24.75/share down .4% after recently establishing a new all time high of $28.70. Recently, PLUG confirmed that they had sold 38M shares priced at $22.25/shares raising a whopping $845.5M which represented about 9.1% of the shares outstanding. 

The leading pan-African e-commerce platform Jumia Technologies (JMIA) kept up its winning ways again today as it closed at $33.25/share, +5.42%.

Lemonade. Inc. (NYSE:  LMND), a company that offers renters, homeowners, and pet health insurance in the United States, and contents and liability insurance in Germany and the Netherlands, through its full-stack insurance carriers while being powered by artificial intelligence and behavioral economics & that has a mission to replace brokers and bureaucracy with bots and machine learning, aiming for zero paperwork, added another 7.86% closing at $91.72/share. 

GOLD, SILVER…

Silver prices closed a US $24.60/oz, +.31 & gold prices closed at US $1,864/oz, +24. North American silver and gold producer Hecla Mining Company (HL) closed at $5.34/share (+3.09%). HL’s 52-week range is $1.40 – $6.79. Recently, Hecla announced Q3 2020 financial and operating results. Phillips S. Baker, Jr., Hecla’s President and CEO stated, “Because of our strong operating performance and higher prices, Hecla had record adjusted EBITDA, generated the most free cash flow in a decade and repaid our revolver in full. These accomplishments were achieved because of our workforces’ resiliency and our commitment to health and safety. With the Lucky Friday ramp-up ahead of schedule, the expected improvements at Casa Berardi, and our modest planned capital expenditures, we are well positioned to further strengthen our balance sheet, increase exploration activities, and pay our enhanced dividend.” Barrick Gold Corporation (GOLD) closed at $23.95/share, +1.91%. .

MONEY

The 2-yr treasury yield moved down 1 basis point to end at .15% while the 10-yr yield dropped 3 basis points to end at .92%. The U.S. Dollar Index weakened again closing at 90.70. 

TOMORROW

The Macro schedule will deliver the revised figures for Q3 Productivity and Unit Labor Costs and the NFIB Small Business Optimism Index report for November.

WATCH LIST

• Shares of INVO Bioscience (INVO) closed trading at $3.145/share up .16% after recently being added to the Nasdaq. 
  • INVO is a medical device company focused on creating alternative treatments for patients diagnosed with infertility and developers of INVOcell®, the world’s only in vivo Intravaginal Culture System. Industry forecasts suggest that only 1% to 2% of the estimated 150 million infertile couples worldwide are currently being treated. INVO’s mission is to increase access to care and expand infertility treatment across the globe with a goal of improving patient affordability and industry capacity. Since January 2019, INVO Bioscience has signed commercialization agreements in the United States, India, as well as parts of Africa and Eurasia and Mexico for the INVOcell device.

• • Recently, INVO filed an 8k highlighting three new partners that they have established to distribute or develop invocell only clinics in Malaysia and North Macedonia. 

• Shares of NeuBase Therapeutics (NBSE) closed at $8.12/share, -2.17%. It’s 52-week high is $11.78/share.
  • NeuBase is developing the next generation of gene silencing therapies with its flexible, highly specific synthetic antisense oligonucleotides. The proprietary NeuBase peptide-nucleic acid (PNA) antisense oligonucleotide (PATrOL™) platform allows for the rapid development of targeted drugs, increasing the treatment opportunities for the hundreds of millions of people affected by rare genetic diseases, including those that can only be treated through accessing of secondary RNA structures. Using PATrOL technology, NeuBase aims to first tackle rare, genetic neurological disorders. NeuBase is continuing its progress towards developing treatment candidates in Huntington’s Disease (HD) and Myotonic Dystrophy (DM1) and is expected to release further data prior to year end 2020.

• • Recently, NeuBase announced the appointment of Curt Bradshaw, Ph.D., as its new Chief Scientific Officer. Dr. Bradshaw is a proven drug developer in the field of precision genetic medicines, coming to NeuBase from his most recent role as Chief Scientific Officer at Arrowhead Pharmaceuticals (ARWR) ($64.72/share +3.32%) ($6.65B mkt cap). In his new role, Dr. Bradshaw will be responsible for leading and expanding NeuBase’s PATrOL-enabled anti-gene pipeline and will serve as a key member of its executive management team. Learn more.

• Shares of Atossa Therapeutics (ATOS) closed at $1.57/share, +6.08%. 
  • Atossa is a clinical-stage biopharmaceutical company seeking to discover and develop innovative medicines in areas of significant unmet medical need with a current focus on breast cancer and COVID-19.

• • An 8k was recently filed at sec.gov by Atossa that read  “On November 26, 2020, Atossa Therapeutics, Inc. (“Atossa”) entered into a sponsored research agreement with Dana-Farber Cancer Institute, Inc. (the “Agreement”). The Agreement provides that Atossa will support research of cytokine-coated nanoparticles for the potential treatment of breast cancer by Carl Novina, MD, Ph.D.”

• • Atossa also announced recently the blinded preliminary results from its Phase 1 clinical study using Atossa’s proprietary drug candidate AT-301 administered by nasal spray. AT-301 was found to be safe and well tolerated in this study at two different dose levels in both single and multiple dose forms over 14 days. AT-301 is being developed for at home use for patients recently diagnosed with COVID-19. There are currently no FDA-approved therapies to treat COVID-19 at home. Learn more.

Economic Reports

• On Monday, we received the Consumer credit report which confirmed a rise by $7.2B in October.

Investing & Inspiration

“The investor’s chief problem — even his worst enemy — is likely to be himself.” — Benjamin Graham

“No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.” – Robert Rhea

“Money is like a sixth sense – and you can’t make use of the other five without it.” – William Somerset Maugham

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” — Albert Einstein

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results” — Warren Buffett

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett

“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.” – Peter Lynch

“Investing puts money to work. The only reason to save money is to invest it.” – Grant Cardone

“You cannot save time for your future use however you can invest time for your future.” – John F. Heerdink, Jr. 

“Know what you own, and know why you own it.” – Peter Lynch

“Liquidity is only there when you don’t need it.” -Old Proverb

“If you want to be a millionaire, start with a billion dollars and launch a new airline.” – Richard Branson

“Fear incites human action far more urgently than does the impressive weight of historical evidence.” – Jeremy Siegel

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

“Spend each day trying to be a little wiser than you were when you woke up.” – Charlie Munger

“The entrance strategy is actually more important than the exit strategy.” – Edward Lampert

“The rivers don’t drink their own water; Trees don’t eat their own fruits. The sun does not shine for itself, And flowers do not spread their fragrance For themselves. Living for others is a rule of nature” – Pope Francis

“It is impossible to produce superior performance unless you do something different from the majority.” – John Templeton

“An investment in knowledge pays the best interest.” – Benjamin Franklin.

“I believe the returns on investment in the poor are just as exciting as successes achieved in the business arena, and they are even more meaningful!” -Bill Gates

“Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won’t grow any faster than the rate of inflation.” – Suze Orman

“The tax on capital gains directly affects investment decisions, the mobility, and flow of risk capital… the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy.” – John F. Kennedy

“If all the economists were laid end to end, they’d never reach a conclusion. -George Bernard Shaw

“There are old traders and there are bold traders, but there are very few old, bold traders.”-Ed Seykota

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger