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Biotech Analysis Central Preview Series: Tracon Pharmaceuticals

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This is a preview blog series on what you can expect when subscribing to my "Biotech Analysis Central" service marketplace. For the full article you must subscribe to my service. This is just an intro of two snippets on the research articles that are written. Thus far, there are about 300+ research reports on both both small-cap and mid-cap biotech stocks with full analysis of the pipeline, catalysts, financials, and clinical trial analysis. If you want to read more then please subscribe to my marketplace service. As always I offer a 2-week free trial just to show you how helpful my service is. You can cancel anytime before the 2-week free trial is up and never be charged a dime.

First Section Of Marketplace Article (This article piece was originally written on September 3, 2020)

The next article I wanted to discuss for the "Biotech Analysis Central News Series" is a biotech by the name of Tracon Pharmaceuticals (TCON). The reason why I wanted to go over this biotech next is because it has several solid programs that are ongoing. Most importantly, the lead product envafolimab is targeting patients with soft tissue sarcoma. Tracon has rights to the drug in the U.S., but has partners that handle other territories across the globe. Envafolimab is gearing up to be tested in a phase 3 study known as ENVASARC. This late-stage registrational study is expected to start in Q4 2020. Another possible catalyst is that its partners 3D Medicines and Alphamab expect to file a BLA for the drug in China. The biotech trades cheap and has shown proof of concepts with its drugs in several types of cancer. In addition, there are more opportunities for growth. For instance, TJ4309 will have a phase 1 data readout in the 2nd half of 2020 any day now. This particular drug, which I will explain below, is being tested to treat patients with advanced solid tumors. This is an important outcome to track because the solid tumor market is huge. There are several programs, as Tracon's pipeline is quite extensive. I believe that should the upcoming catalysts turn out to be highly positive, then it will lead the biotech on the right track to creating shareholder value.

Conclusion Of Marketplace Article

The final verdict is that Tracon Pharmaceuticals is a good speculative biotech. The reason why I believe this is the case is because in terms of Envafolimab, it has only seen success in the two subtypes of sarcoma done by Tracon. The other positive data came from 3D Medicines and Alphamab, using Envafolimab to treat patients with MSI-H /dMMR advanced solid tumors. As far as Tracon's opportunities go for UPS and MFS (sarcomas), it will end up being a $200 million potential revenue market. That means the biotech will have to expand to other sarcomas to reach higher revenues. This can possibly be done with TJ4309, which is an anti-CD73 antibody. This is being explored in a phase 1 study in combination with Roche's Tecentriq, to treat patients with solid tumors. This is very good news if phase 1 data turns out to be good. That's because the global solid tumor market is expected to be worth $424.6 billion by 2027. TCR102 has a good shot at the multi-billion dollar NSCLC market and then the rare disease cancer of mesothelioma. I think what makes Tracon a good biotech is the diversity of its pipeline. I even briefly mentioned that Envafolimab with 3D Medicines and Alphamab is only the first partnership. A second partnership was established to develop bi-specific antibodies (5 of them) and try to advance them in cancer research as well. Best part of all is that Tracon Pharmaceuticals only has a market cap of $37 million. There are risks in terms of the trials, which may or may not work out. Lastly I would caution a trade depending upon the market. Just the other day, the DOW closed lower by more than 800 points. I think the market was extended, but it is still important to keep an eye on it before potentially entering any type of position for this stock.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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