Tesla [TSLA] - Last Close: $109.10
Tesla is trading for dirt cheap after a row of losses.
The electric vehicle company has struggled since its CEO Elon Musk acquired social media firm Twitter [TWTR] earlier this year.
Musk unloaded millions of dollars worth of his TSLA holdings to fund the transaction, and shareholders are concerned that the executive is distracted.
The fact that Musk's Twitter escapades have been so controversial has only exaggerated the market's response.
Shares are currently trading close to their 52-week low after an 11.4% loss on Tuesday, matching prices not seen since 2020.
TSLA is rebounding today with a 2.1% gain, and it's the most actively traded stock in the premarket.
My Take: TSLA's P/E ratio of 33.61 is beginning to look pretty reasonable. The company is out of favor now, but the market is fickle. If you're bullish on TSLA, this is your chance to get in for cheap.
Kala Pharmaceuticals [KALA] - Last Close: $3.92
News of an FDA green light is boosting shares of Kala Pharma.
The biopharma firm announced late Tuesday that the US FDA accepted its investigational new drug application for its KPI-012 drug candidate.
Kala says it now expects to begin Phase 2b human testing of the stem cell secretome in patients with persistent corneal epithelial in Q1 2023.
The trial will evaluate KPI-012's safety & efficacy, and complete healing of the cornea will be the trial's primary endpoint.
Trial enrollment will begin early next year, and top-line data is expected to be available by Q1 2024.
The FDA acceptance also triggered a $25 million funding facility through a private placement of Kala's series E preferred shares at $575 apiece.
KALA is one of the morning's top performers with a 53.5% gain on elevated premarket trading volume.
My Take: Big breakthrough for a very tiny biotech stock. KALA has a market cap of just $5.95 million and a short percentage of 6.78%. Expect wild price action potential if you want to try your luck in this micro-cap stock.
Jounce Therapeutics [JNCE] - Last Close: $0.7374
Jounce is trending after landing a lucrative asset sale deal.
The immunotherapy company announced late Tuesday that it will sell the rights to experimental cancer therapy GS-1811 to Gilead Sciences [GILD].
Under the terms of the amended licensing deal, Gilead will pay $67 million to acquire all rights to the drug, as well as global development & commercialization.
In 2020, Jounce and Gilead agreed to collaborate on development of GS-1811, and the deal included an $85 million upfront payment to Jounce.
The deal included $685 million in milestone payments, and Jounce received $40 million so far. However, it effectively cashed out its stake with this amended deal.
JNCE is one of the morning's hottest stocks with 72.2% gain on active trading volume.
My Take: JNCE chose $67 million in hand over $685 million in potential payments. It could mean that the company is concerned about its cash position. The stock has struggled this year, but this rally could right the ship.
Minerva Surgical [UTRS] - Last Close: $0.1625
Minerva Surgical is moving higher on news of a private placement.
Late Tuesday, the commercial-stage MedTech stock announced a new private placement led by private equity firm Accelmed.
The placement included 146.6 million shares of common stock valued at $0.2046 apiece, for an expected gross proceed of $30 million.
The transaction will make Accelmed the controlling shareholder in Minerva upon closing, which is expected to occur in Q1 2023, subject to shareholder approval.
Accelmed will also have the opportunity to appoint the majority of directors to Minerva's board of directors under the terms of the deal.
Minerva said the funds will go towards operations, R&D, working capital, and general coporate purposes, and it will extend its cash runway by 12 months.
The news catapulted UTRS to a 109.2% gain, and it's one of this morning's highest-volume movers.
My Take: Accelmed's support of UTRS gives the tiny MedTech stock a much better chance of surviving high rates and other economic challenges in the months ahead.
