POINT Biopharma Global Inc.

POINT Biopharma Global Inc. (NASDAQ: PNT) is a pharmaceutical company in the clinical stage that specializes in the advancement and market launch of radioligand treatments for cancer. POINT aims to revolutionize precision oncology by blending a collection of focused radioligand resources, an experienced management team, a leading-edge pipeline, in-house manufacturing capabilities, and a secured supply of medical isotopes like actinium-225 and lutetium-177. POINT is currently engaged in active clinical trials, including FRONTIER, a phase 1 trial for PNT2004, a comprehensive cancer program that targets fibroblast activation protein-α (FAP-α), as well as SPLASH, a phase 3 trial for PNT2002 designed for individuals dealing with metastatic castration-resistant prostate cancer (mCRPC) following second-line hormonal treatment.

Recent Financial and Business Updates:

• Second Quarter Income Statement Review:
  • Reported total revenue of USD 4.86 million for June 2023 quarter.
  • Reported a net loss of USD 25.41 million for the June 2023 quarter.
  • Reported basic and diluted net loss per common share of USD 0.24.
• Balance Sheet Review:
  • The company’s total assets as of June 30, 2023, amounted to USD 497.77 million.
  • Total liabilities amounted USD 50.32 million as of June 30, 2023.
  • Total stockholders’ equity was USD 447.45 million as of June 30, 2023.
  • Total cash and cash equivalent as of June 30, 2023, was USD 57.28 million.
• Acquisition update:
  • Lilly has declared a firm commitment to acquire POINT, a radiopharmaceutical enterprise with a portfolio of clinical and preclinical stage radioligand treatments under development for cancer treatment, at USD 12.50 ( a premium of 83.9% from the last closing price) in cash for USD 1.4 billion.
  • Radioligand therapy offers a means to precisely target cancer by associating a radioactive isotope with a targeting molecule, delivering radiation directly to cancer cells.
  • This approach allows for substantial anti-tumor effectiveness while minimizing damage to healthy tissue.
• Acquisition update:
  • POINT unveiled a partnership and licensing deal aimed at the development and marketing of radioligands specifically designed to target DARPin molecules, known as "Radio-DARPins."

Technical Observation (on the daily chart)

The Relative Strength Index (RSI) over a 14-day period stands at 83.47, shooting up from oversold level to the overbought level on the news of the acquisition. At the same time, the stock’s volume traded rose to 40.226 million on October 03, 2023. The current price is above both 21-period SMA and 50-period SMA, while both the SMAs will act as support levels incase the price falls.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for POINT Biopharma Global Inc. (NASDAQ: PNT) based on current price of USD12.38, October 04, 2023, at 07:40 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is October 04, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar