Investors in Tyme Technologies(Nasdaq: TYME), a clinical-stage biotech company focused on cancer, should be excited for the near-term future in my humble estimation as I believe shares of this $2 stock could spike it to $8 in the coming weeks/months.
SM-88: A Nightmare For Pancreatic Cancer Cells
The company’s big headline has been on one central acronym: SM-88. What is this acronym, one might ask? Well, SM-88 is a novel oral compound that has shown encouraging efficacy in early-stage data, based on the analysis of Allyson J. Ocean MD, an associate professor of clinical medicine at Weill Cornell Medicine and New York Presbyterian, who also adds that the agent seems to be well tolerated in patients with metastatic pancreatic cancer.
“It is an important drug in this space because we need better therapies and if patients are in the second and third lines of treatment, they likely cannot tolerate chemotherapy—especially at the standard dose,” said Ocean. “To have a new compound with a really good side effect profile is something that is important.”
A phase II study lead by Dr Ocean was presented at the 2019 Gastrointestinal Cancers Symposium and the results were very encouraging: Upon a median follow-up of 4.3 months after treatment initiation, 67.8% of patients were alive and still on treatment.
Although all information has already been factored into the current price, I nevertheless believe that their new shuffling of chairs at the executive level will truly start to play itself out in the share price as solidly bullish.
The CEO recently stepped down in March and Former Kite Pharma and Celgene executive Michele Korfin stepped in as the firm’s Chief Commercial Officer. She has over 20 years of experience in oncology, focused on product launches, oncology marketing strategy, and commercial sales, perhaps most notably leading the oncology sales force of over 120 representatives, generating over $650MM in revenue for ABRAXANE, which is now a standard of care in pancreatic cancer.
New Chief Business Officer Jonathan Eckard PhD has an equally impressive resume. Tyme’s website shares about their new executive hire:
“Jonathan Eckard has served as our Chief Scientific Affairs Officer since 2017 and assumed the role of Chief Business Officer in March 2019. Dr. Eckard has over 12 years of financial experience in equity research, bringing to us both important industry insights and comprehensive understanding of the healthcare equity capital markets.
From 2016 to 2017, Dr. Eckard was Chief Business and Strategy Officer of SELLAS Life Science, a private oncology-focused biotechnology company. His previous finance roles include equity research analyst roles at Barclays Capital Markets, Citi Capital Markets, Leerink Swann, and HSBC Securities, where he primarily followed small to mid-sized biotechnology companies.
Dr. Eckard received a Bachelor of Science degree in Biochemistry from Ohio University, a Master of Science degree in Toxicology and a PhD in Toxicology and Carcinogenesis from New York University School of Medicine.”
Why do the resumes of these execs matter so much?
I believe that they will help the fundamental shifts that we are going to see in the activities behind the scenes at the company which I believe will be reflected in the share price.
I am not a lone holdout, either.
Zacks Investment Research called Tyme a “BUY” recently and when giving their opinion, around 100% of Wall Street analysts, which represents 3 out of 3 rated the stock as a Buy. 0 brokerage firms of the remaining 0% rated the stock as a Hold with 0 analyst rating it as a sell. Overall, the number of aggregate TYME shares held by institutional investors represents 16.3% of total shares.
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity. Because shareholders’ equity is equal to a company’s assets minus its debt, ROE could be thought of as the return on net assets.
And Tyme’s ROE is not good. Still, while the firm’s ROE is an abysmal -127.5%, I believe that these new on-boards will point the ROE back in the right direction and perhaps help bring this company’s share price out of the doldrums.
The technicals also look constructive. We are seeing strong bullish indicator divergence at the $2 support level here. I think $4 we could see in the coming weeks/months, and perhaps even double that to $8 if we really get some momentum.