Yesterday, we issued an Executive Informational Overview® on Local Corporation (LOCM-NASDAQ), a provider of digital marketing products designed to connect local businesses with online and mobile consumers.
Local Corporation has expertise in helping small businesses develop and maintain a sophisticated online presence in order to be easily found by consumers, both on their own web properties and on major search engines. Its platform includes rich media ad creative, local business directory and product search technologies, mobile capabilities, search engine optimization (SEO), web hosting, social media services, daily deals, and a loyalty/rewards program, among other products and services.
The Online Advertising Market is Growing
Consumers are increasingly relying on the Internet and mobile devices to find products and services. Consequently, the use of traditional offline information for product searches, such as print Yellow Page listings and newspaper ads, is decreasing. As a result of this shift in consumer behavior, local businesses are gradually moving from traditional offline print marketing to online digital advertising, which essentially entails any form of advertising that appears on the Internet (e.g., search engine listings, banner ads, online classified advertising, or rich media ads that display video and interactive content). Consequently, the market for online advertising—Local Corporation’s target industry—is expanding and is likely to continue to do so for the coming years. In 2010, digital advertising was valued at approximately $20 billion, or 14.6% of the roughly $137.2 billion advertising industry in the U.S. According to BIA/Kelsey estimates, this market could expand to $38 billion, or 25.4% of the U.S. advertising industry, by 2015 (as illustrated in Figure 1).
Local Corporation's Expanding Online Local Media Business
Over the past five years, the firm has grown from a single website (www.local.com) to an online media business powering multiple proprietary websites (e.g., www.krillion.com and www.spreebird.com) and approximately 1,200 regional media sites. Local Corporation currently reaches an estimated one million consumers daily.
Local Corporation’s second quarter 2012 revenues were over $27 million, up 75% from the year-ago period. The Company achieved record traffic levels and strong monetization of that traffic—two key performance indicators for its business. Previously, from 2006 to 2010, Local Corporation achieved revenue growth of 492%, ranking the Company 191st on Deloitte & Touche LLP’s Technology Fast 500™ list and 12th on the Orange County Business Journal list of fastest-growing public companies.
For more information about Local Corporation and its product portfolio, download a copy of our 48-page Executive Informational Overview® on the Company, available here.
This afternoon we published a new Quarterly Update on InVivo Therapeutics, an innovative biotechnology company based in Cambridge, Mass., that we have covered since December 2011. InVivo is developing multiple neurotrauma products based on its proprietary technologies, which are based on several decades of research at MIT’s Langer Lab. One of the Company's major advancements at present is the development of a medical device composed of a resorbable biopolymer (a biomaterial used extensively for tissue engineering) that is designed for implantation or injection into a damaged spinal cord after a trauma, where the device may hopefully repair injury and heal the patient before paralysis or other severe side effects of a spinal cord injury can set in. To InVivo’s knowledge, it was the first to successfully demonstrate functional improvement in non-human primates paralyzed after a spinal cord injury (SCI) model—100% of primates paralyzed with SCI and treated with InVivo’s biopolymer scaffold device in preclinical studies regained motor function and mobility within 12 weeks. The Company is now moving this technology into clinical development, with a pilot human study pending FDA review and approval.
- InVivo plans to submit additional applications to the FDA during 2012 related to a second product candidate, an injectable biocompatible hydrogel that offers controlled drug delivery over a period of months. The hydrogel platform is being developed to treat SCIs as well as pain from peripheral nerve injuries. InVivo commenced a preclinical study with Pennsylvania’s Geisinger Health System in the first quarter 2012 to evaluate the hydrogel for pain and, in June 2012, submitted a request for a meeting with applicable FDA drug and device agencies for this product.
- In preparation for clinical and commercial manufacturing, InVivo is ramping up its cGMP facility. In July 2012, the Company moved into a 21,000 ft2 headquarters and research center at One Kendall Square in Cambridge, Mass. This site consolidates InVivo’s operations and includes a vivarium and cGMP clean room, among other features.
- InVivo has recently appointed new individuals skilled in manufacturing, cell research, and business development, including former Stryker Spine executive Mr. Robert Housler Jr. as vice president of business development. Attesting to the caliber of InVivo’s staff, one of its neurosurgeons, Dr. Amer Khalil, was awarded a grant from the physician organization MDHonors in August 2012 to further InVivo’s research on applying hydrogels to SCIs.
- Following the close of an oversubscribed $20 million public offering in February 2012, InVivo held cash and cash equivalents of over $18 million as of June 30, 2012, versus nearly $4.4 million as of December 31, 2011.
For more information about InVivo and its research, download a copy of our 16-page Quarterly Update on the Company, available
here.
LRAD Corp. (LRAD-NASDAQ)
Earlier this week, long-range acoustic device provider LRAD Corp. appointed Bill VanDeWeghe to its Board of Directors as well as to its Compensation Committee. Mr. VanDeWeghe has a diverse background, with significant experience in both the business and legal arenas, as overviewed below.
Mr. VanDeWeghe is a managing director at RA Capital Advisors, where he heads the firm's defense industry team, developing strategies for clients and executing all facets of M&A transactions and financings. Mr. VanDeWeghe focuses on companies providing hardware, software, and services for defense, homeland security, and intelligence agency support. Mr. VanDeWeghe is also a senior strategic advisor and independent consultant for McKenna Long & Aldridge LLP's (MLA) San Diego office. Working with MLA's multidisciplinary team of attorneys across the country, Mr. VanDeWeghe advises and assists companies with corporate matters, business disputes, government contracting, and political issues. Prior to joining RA Capital Advisors in 2006, Mr. VanDeWeghe was a litigator for 15 years and a shareholder with a law firm where he worked with a broad variety of companies and professionals throughout Southern California assisting with numerous issues affecting their businesses. Mr. VanDeWeghe served as an artillery officer on active duty in the U.S. Army from 1983 to 1987, followed by a position commanding a firing battery in the Virginia National Guard. He was the Republican Party nominee for U.S. Congress, 53rd Congressional District, in 2002. Mr. VanDeWeghe earned a Bachelor's degree at Princeton University and a law degree at the Marshall-Wythe School of Law at the College of William and Mary. He is a FINRA-registered securities representative.
GenSpera, Inc. (GNSZ-OTC)
As well, GenSpera, Inc. appointed of Nancy Jean Barnabei, CPA as vice president finance and treasure. She is also serving as GenSpera’s principal accounting officer. As summarized below, Ms. Barnabei has experience developing and implementing operational and financial systems within growing biotech companies. GenSpera is currently preparing to commence a multi-center Phase II trial with its lead compound, G-202, in prostate cancer patients.
Ms. Barnabei has over 20 years of experience with both public and private companies in the pharmaceutical industry, in which she held a key role in the transition from fundraising to execution of growth strategies. Most recently, from 2010 to 2011, she was chief financial officer (CFO) of Corridor Pharmaceuticals, Inc., which acquired Immune Control, Inc., where she served as CFO from 2008 to 2010. Previously, she founded Talkeetna Advisors, LLC in 2005, where she provided services to emerging biotechnology companies, including budget development, long-range financial and operational planning, and accounting and reporting system implementation. Ms. Barnabei also served as vice president finance, treasurer and CFO of Locus Pharmaceuticals, Inc. from 2000 to 2004. She earlier served as Controller of Cephalon, Inc. (now part of Teva Pharmaceutical Industries Ltd. [TEVA-NASDAQ]), where she was responsible for Securities and Exchange Commission (SEC) reporting, tax strategies, and treasury, among other functions. She is a graduate of Northeastern University in Boston, Massachusetts.
InVivo Therapeutics Holdings Corp. (NVIV-OTC)
On Tuesday, August 21st, InVivo Therapeutics' chief executive officer (CEO) Frank Reynolds appeared on Boston’s ABC affiliate WCVB-TV during the 11:00 p.m. EDT newscast. The full segment is available via WCVB's website. InVivo is developing a novel treatment for traumatic spinal cord injuries (SCIs). The company is awaiting FDA approval to initiate human studies for its first SCI treatment.
Our July 2012 update to the November 2011 industry overview Nanotechnology and the Built Environment: The Transition to Green Infrastructure is now available at www.crystalra.com. This report contains...
Key corporate developments on…
Cabot Corp. (CBT-NYSE) ▪ Calgon Carbon Corporation (CCC-NYSE) ▪ Codexis, Inc. (CDXS-NASDAQ) ▪ CREE Inc. (CREE-NASDAQ) ▪ Elevance Renewable Sciences, Inc. ▪ EnerNOC, Inc. (ENOC-NASDAQ) ▪ IBM Corp. (IBM-NYSE) ▪ Itron, Inc. (ITRI-NASDAQ) ▪ NanoMech, Inc. ▪ Novaled AG ▪ Universal Display Corp. (PANL-NASDAQ)
And key sector developments on…
Advanced Materials and 3D Printing ▪ Building-integrated Photovoltaics (BIPV) ▪ Construction ▪ Displays ▪ Paints/Coatings ▪ Smart Grids ▪ Water Desalination
Click here to download this latest issue.
The U.S. Green Building Council (USGBC) recently reported that over two billion square feet of existing commercial projects are now LEED-certified across 130 countries and 50,000 projects, including most notably the commercial interior for Google in Mumbai, the Vestas Technology Center in Lem, Denmark, as well as the Ernst and Young Plaza in Los Angeles, California, among others.
An additional seven billion square feet of commercial space is currently pending in the LEED approval process, which certifies roughly two million square feet daily on average. In the residential sector, approximately 23,000 U.S. homes are LEED certified and an additional 86,000 homes are pending certification. In total, the USGBC estimates that the LEED program contributes $554 billion annually to the U.S. economy and has supported nearly eight million U.S. jobs.
As LEED certification picks up steam, "green building" products and technologies are also being increasingly developed and adopted.
Wal-Mart Continues Effort to Become Fully Reliant on Renewable Energy Resources
As part of Wal-Mart Stores Inc.’s (WMT-NYSE) goal of becoming 100% powered by renewable energy, the retail giant recently unveiled its 100th store to rely on solar panels to generate power in San Diego, California. The company seeks to expand renewable energy to 75% of stores in California (roughly 130 stores) by the end of 2013. Wal-Mart partner, SolarCity, is responsible for the installation, management, and maintenance of solar panels on this site as well as for up to 100 other stores. Wal-Mart estimates that its efforts across California could ultimately produce up to 70 million kilowatt (kW) hours of renewable energy annually, reducing the company’s carbon dioxide emissions while supplying 10% to 30% of each facility’s electricity requirements. Additionally, the planning and installation of each site’s solar panel project typically require nearly 50 contract positions, creating jobs for the local community. To date, the company’s California efforts have resulted in 3,000 contract construction jobs, in addition to the more than 1,200 employees hired by SolarCity to accommodate the company’s projects since 2010.
A New Type of Solar Cell May Fuel Electricity-Generating Windows
Researchers at the University of California, Los Angeles (UCLA) have designed a visibly transparent polymer solar cell (PSC), overcoming obstacles of previous "solar window" efforts such as limited transparency and efficiency. These researchers favored polymer-based solar cells over competing monocrystalline, polycrystalline, and thin film technologies due to the flexible properties, low cost of production, and broad potential application of the polymer-designed cells. The new PSC, detailed in the ACS Nano journal, could ultimately support the development of windows that generate electricity while offering clear views in addition to use in other applications, such as portable electronics components. Composed of plastic-like materials, UCLA’s PSCs are lightweight, flexible, 70% transparent, and employ infrared light (versus visible light) to generate energy. To date, 4% power conversion efficiency has been achieved for this technology.
This is just one sample of many developments in process today that seek to make renewable energies feasible, efficient, and desirable to manufacturers and consumers alike. For more information about this space, please visit our Nanotechnology library of related research.
On August 14, 2012, InVivo Therapeutics Holdings Corp. (NVIV-OTC) reported its financial results for the three and six months ended June 30, 2012. Net income totaled $2.2 million, or $0.03 per diluted share, for the quarter versus a net loss of nearly $1.4 million, or ($0.03) per diluted share, for the year-ago quarter ended June 30, 2011. Included in the results for the second quarter of both 2012 and 2011 were non-cash derivative gains of $4.95 million and approximately $1.2 million, respectively, reflecting decreases in the fair value of the derivative warrant liability.
InVivo incurred operating expenses for the three months ended June 30, 2012, of roughly $2.8 million versus $2.5 million for the comparable 2011 term.
As of June 30, 2012, the Company held cash and cash equivalents of over $18 million, which InVivo believes is sufficient to meet operating and capital requirements into the first quarter 2014.
Year to Date
For the six months ended June 30, 2012, InVivo generated net income of approximately $5.4 million, or $0.07 per diluted share, versus a net loss of $2.6 million, or ($0.05) per diluted share, for the six months ended June 30, 2011. These figures include non-cash derivative gains of nearly $10.6 million and $1.3 million for the equivalent year-to-date periods of 2012 and 2011, respectively.
The Company’s total operating expenses for the year to date were $5.2 million versus $3.9 million for the first half of 2011.
InVivo's complete release available here.
In March 2012, we initiated coverage of PhotoMedex (PHMD-NASDAQ), a global skin health company targeting dermatologists, aestheticians, and consumers. Last week, the company issued its financial results for the second quarter 2012, ended June 30th. Highlights are summarized below.
Note that PhotoMedex merged with Radiancy, Inc. in December 2011, so prior-year comparison figures are based on Radiancy's 2011 earnings whereas current numbers include both Radiancy's and PhotoMedex's results.
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For the second quarter 2012, PhotoMedex generated revenues of $58.9 million, an increase of 74% compared with the prior-year second quarter and an increase of 17% sequentially.
For the quarter, consumer revenues increased 20% over the first quarter 2012 to reach $50.5 million. Global retail and home shopping channel revenues increased 63% sequentially to reach $9.8 million in the second quarter 2012.
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Gross profit for the quarter was $46.5 million, an increase of 65% compared with the second quarter 2011 and an increase of 19% sequentially
PhotoMedex's gross margin of 79% in the second quarter is up from 77.7% in the 2012 first quarter and 83.2% in the prior-year quarter.
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Net income was $4.2 million, or $0.20 per diluted share, for the second quarter 2012 versus a net loss for the second quarter 2011 of $10 million, or ($0.98) per share.
Income before taxes, litigation expenses, and other one-time expenses was $9 million; one-time expenses including for past litigation of $4.0 million or $0.19 per diluted share; adjusted income of $12.2 million, or $0.58 per diluted share
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As of June 30, 2012, the Company had cash and cash equivalents of $52.9 million, following a $37.5 million raise in April 2012.
Execution of Strategic Plans
PhotoMedex has recently worked to consolidate its manufacturing operations to a facility in Carlsbad, California, which helped improve the company's gross margins for the second quarter compared to the first quarter 2012. As well, consumer sales are climbing, as evidenced by the no!no! Hair product, which broke its own sales records on HSN (Home Shopping Network) over the fourth of July.
"The event that lasted only 24 hours and ended with no!no! Hair being sold out and an on-screen counter that showed over 41 thousand units sold for $249.95."
PhotoMedex has also now expanded into the Korean market, and expects to reach new European channels during 2012 as well. Domestically, the company is expanding its media campaigns for the XTRAC® Excimer Laser (professional-grade equipment that enables dermatologists to treat psoriasis) as well as developing a direct-to-consumer platform for its Neova® brand of skin rejuvenation products, which have been featured on The Doctors television show and are co-marketed with the successful no!no!® line of products.
We look forward to continuing to follow PhotoMedex as the company strives to refine and optimize its post-merger global operations, expand into new geographies, and ramp-up marketing and sales of its innovative beauty and skin health products. To stay abreast of these developments, please visit www.crystalra.com for continuing PhotoMedex research.
Yesterday, LRAD Corp. (LRAD-NASDAQ), a supplier of advanced sound technologies for commercial, military, and government markets worldwide, reported that it received a $1.9 million order from the U.S. Army Reserves for its LRAD 500X™ and LRAD 100X™ Long Range Acoustic Hailing Devices. The company has long provided the Army with LRAD systems that can be vehicle-mounted to broadcast highly intelligible warnings and commands to soldiers and civilians at long distances.
Following this announcement, the company released its financial results for the fiscal third quarter 2012, which ended June 30, 2012.
LRAD reported the following key items for the quarter (comparisons to the fiscal Q3 2011):
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Revenues of $3.2 million, a 33% increase over Q3 2011 due to an increase in orders from the U.S. Army
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Gross profit of $1.6 million, or 50% of revenues, versus $905,000, or 38% of revenues, for Q3 2011
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Net income of $200,000, or $0.01 per diluted share, versus a net loss of $684,000, or ($0.02) per share, for Q3 2011
Summarized below are highlights of the company's nine-month (year-to-date) financials for 2012 thus far:
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Revenues of $9.2 million, a decrease from $20.1 million for the nine months ended June 30, 2011, which had included a $12.1 million foreign military order
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Net income of $222,000, or $0.01 per diluted share, that declined from $4.7 million, or $0.15 per diluted share, for the year-ago term due to a decrease in revenues and gross margin partially offset by decreased operating expense
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Positive cash flow of $490,000 for the nine months ended June 30, 2012
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Cash and cash equivalents of $14.4 million at June 30, 2012
The profitable LRAD Corp. also anticipated a favorable finish to 2012, as the company's move into a new facility with greater manufacturing capacity has recently been completed, which may allow LRAD to capitalize on its expected U.S. military and international orders for the year.
For a greater explanation of LRAD's business, please consult our Quarterly Update on the company, published June 20, 2012. As well, LRAD's management is scheduled to discuss the company's fiscal Q3 2012 business and financial results on a conference call today, August 8, 2012, at 4:30 p.m. Eastern Time.
CNBC today published an article wherein the founder of Vanguard Group discussed his view on the necessity of investing in equities, which while higher risk, offer the potential for higher reward.
"If you don't have money in the stock market (^GSPC) and you hope to retire someday, the founder of The Vanguard Group says you're making a big mistake. John 'Jack' Bogle tells us if you're investing for the long-term don't get spooked by events of late. "Knight Capital is meaningless for anyone in the market for the long haul," he says. "In fact, you're probably in a mutual fund and you can pat yourself on the back for being smart." In other words, for most individual investors the risk from Knight Capital is non- existent because most individuals hold a basket of stocks and the diversity of the basket hedges out the single stock risk."
-- "Avoiding Stocks Is a Big Mistake: Vanguard Founder" By Lee Brodie | CNBC
Along those lines, roughly two stocks increased for every one that decreased on the NYSE today. An examination of the companies recently under our coverage found several significant gains for today, as highlighted in the table below (ticker/name/closing price/percent increase). For greater details on any of these companies, please view our coverage of them at www.crystalra.com.
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ADMP
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Adamis Pharmaceuticals Corporation
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0.64
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+3.23%
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ADXS
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Advaxis, Inc.
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0.077
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+8.45%
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BNC.TO
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Bioniche Life Sciences Inc.
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0.64
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+4.92%
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PHMD
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PhotoMedex, Inc.
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14.10
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+5.46%
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PPHM
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Peregrine Pharmaceuticals, Inc.
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1.75
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+5.42%
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PSTI
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Pluristem Therapeutics, Inc.
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3.80
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+14.80%
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TTTM
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T3 Motion, Inc.
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0.79
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+5.33%
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GenSpera, Inc. (GNSZ-OTC) is one step closer to initiating its planned Phase II human clinical trial of its lead compound, G-202, in prostate cancer patients. On Tuesday, July 31, 2012, GenSpera announced that the U.S. Food and Drug Administration (FDA) cleared its Phase II trial for initiation. The Company expects to commence patient enrollment once it receives approval by the Institutional Review Boards for its six trial sites in the U.S. and the UK. The study could include up to 40 prostate cancer patients who failed previous hormonal therapy. GenSpera expects prostate cancer patients to particularly benefit from G-202 due to the drug’s ability to target slow-growing cancer cells.
Market Opportunity for Prostate Cancer Treatment
Healthcare advisory firm Decision Resources expects global sales of prostate cancer drugs to more than double from nearly $4 billion in 2009 to nearly $9 billion in 2019. Globally, prostate cancer is responsible for 250,000 deaths each year. In the U.S., the American Cancer Society (ACS) anticipates that over 240,000 men will be diagnosed with prostate cancer in 2012—making it the most commonly diagnosed cancer for men in the U.S.—in addition to causing more than 28,000 deaths annually.
Traditionally, prostate cancer patients had two main treatment options: surgery or radiation. However, over the past decade, a number of new technologies have entered the market, including more advanced and targeted surgical options. Although these options are gaining popularity, the ACS cautions that there remains minimal long-term data on many of these treatments, making it difficult to accurately assess their effectiveness and potential side effects over time.
As well, a better understanding of the molecular abnormalities of prostate cancer has led to new approaches, including hormone therapies such as Johnson & Johnson's (JNJ-NYSE) Zytiga®, which blocks the production of testosterone. Additionally, Medivation, Inc. (MDVN-NASDAQ) has filed a New Drug Application (NDA) for enzalutamide (formerly MDV3100) to treat men with castration-resistant prostate cancer previously treated with docetaxel-based chemotherapy after demonstrating an ability to extend median survival by 4.8 months, and was granted Priority Review Designation by the FDA. Enzalutamide interferes with testosterone’s ability to bind to prostate cells. While hormone therapies are becoming more effective, many patients develop resistance to hormone therapies over time and must eventually rely on other forms of treatment (Source: Reuters, Analysis: New drugs drive prostate cancer market, September 19, 2011).
Additionally, Dendreon Corp.’s (DNDN-NASDAQ) Provenge® was the first FDA-approved immunotherapy for prostate cancer. However, Provenge® costs $93,000 per patient and, in clinical studies, was shown to improve median survival by 4.5 months. Despite being on the market for two years, Dendreon continues to report quarterly losses due to slow market adoption (Source: Chicago Tribune, May 7, 2012).
Employing a Novel Mechanism of Action to Treat Prostate Cancer
Despite recent advances, improved therapies are still needed to treat prostate cancer. Although several drugs have recently been approved or are in late-stage development, they offer different mechanisms of action than GenSpera’s G-202, which kills cancer cells independently of androgen (hormone) pathways. GenSpera has spent two decades developing a drug designed to be activated from within a tumor—reducing the potential for adverse side effects in other areas of the body. Greater details concerning the technology that supports G-202 are provided in the Company’s 56-page Executive Informational Overview® (EIO) available here. Additionally, a peer-reviewed research paper, entitled “Engineering a Prostate-Specific Membrane Antigen–Activated Tumor Endothelial Cell Prodrug for Cancer Therapy,” was published in June 2012 in Science Translation Medicine and offers detailed methods and data supporting GenSpera’s G-202 rationale and mechanism of action.
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