Biotech Stock Pops 11% on Shrinking Losses

A biotech stock is surging after slashing its annual losses by 63%, a pharma major is tanking upon posting a significant loss, and an IoT system integrator is soaring 35% after signing an MoU for setting up data centers in Malaysia. Read on to find out more.

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AI and EVs are booming, and at the heart of these industries lies a critical need for metals like copper, nickel, and PGMs. As demand for clean energy and advanced technology accelerates, companies securing these resources are becoming essential players in the global supply chain.

That’s why one Canadian mining company is making headlines. Their high-grade polymetallic discovery in Quebec is drawing comparisons to Russia’s Norilsk Mine—one of the world’s richest deposits.

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Futures 📈

What to Watch

Earnings:

• None Scheduled

Economic Reports:

• Personal income and spending [Jan]: 8:30 a.m.

• PCE index [Jan]: 8:30 a.m.

• Advanced U.S. trade balance in goods [Jan]: 8:30 a.m.

• Advanced retail and wholesale inventories [Jan]: 8:30 a.m.

• Richmond Fed President Tom Barkin will speak at 8:30 a.m.

• Chicago Business Barometer (PMI) [Feb]: 9:45 a.m.

• Chicago Fed President Austan Goolsbee will speak at 10:15 p.m.

Biopharma

Apellis Stock Surging on Strong Revenue Growth, Possible Profitability Path

Apellis Pharmaceuticals [NASDAQ: APLS] reported strong financial performance for 2024, with total revenue reaching $781.4 million, marking a 97% increase from the previous year.

The company’s flagship drug, SYFOVRE®, generated $611.9 million in sales, while EMPAVELI® contributed $98.1 million.

Apellis significantly narrowed its net loss to $197.9 million, a 63% reduction from the $528.6 million loss recorded in 2023.

This improvement, coupled with a strong cash position of $411.3 million as of December 31, 2024, has fueled optimism about Apellis reaching profitability, sending its stock up by more than 11% in premarket trade today.

Another key development is the company’s submission of a supplemental new drug application for EMPAVELI to treat C3G and IC-MPGN, with an anticipated U.S. launch in the second half of 2025.

In the fourth quarter alone, Apellis delivered approximately 94,000 SYFOVRE doses, with over 510,000 injections administered since the drug’s launch.

With rising product revenue and a strategic growth plan, Apellis appears to be positioning itself for sustained success and potential profitability in the near future.

Pharmaceuticals

Recursion Pharmaceuticals Stock Plunging as Institutional Investors Weigh Options

Recursion Pharmaceuticals [NASDAQ: RXRX] shares are plunging 11% in premarket trade, continuing on from an 8% decline yesterday.

The company reported a net loss of $463.7 million for the year and will end 2024 with $603 million in cash reserves, which it expects to support its operations into 2027.

This latest drop adds to a broader one-year decline of 418%, raising concerns among institutional investors who own 75% of the company’s shares.

With 11 major institutional investors holding a combined 51% stake, any large-scale sell-off could trigger further declines, potentially impacting smaller investors as well.

However, the company reported that it remains focused on advancing its clinical pipeline and accelerating AI-driven breakthroughs in drug discovery.

It has shown promising early results for its investigational treatments, including REC-617, an oral CDK7 inhibitor, which showed encouraging safety and efficacy in a Phase 1/2 study.

REC-994, a potential treatment for cerebral cavernous malformations, met key study endpoints and demonstrated signs of symptom stabilization.

Metals Powering the Future (Sponsored)

AI Is Booming—But What’s Powering It Could Be Even Bigger

Investing in AI is huge—but what if you could get ahead by investing in the materials powering it all?

AI systems, EVs, and clean energy technologies rely on critical metals like copper, nickel, and PGMs. As global demand for these technologies soars, the metals behind them are becoming even more valuable.

That’s where one Canadian mining company comes in. Their high-grade polymetallic discovery in Quebec is already drawing comparisons to Russia’s Norilsk Mine—one of the world’s most valuable metal deposits.

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Pharmaceuticals

Amneal Pharmaceuticals Surpasses Revenue Estimates, Shares Gain Over 3%

Amneal Pharmaceuticals Inc. [NASDAQ: AMRX] shares are climbing more than 1.4% in premarket trading today on stronger-than-expected fourth-quarter revenue and an optimistic outlook for 2025.

The pharmaceutical firm generated $731 million in revenue for the final quarter of 2024, surpassing analyst predictions of $703.74 million.

This marks an 18% increase from the previous year, driven by robust performance across its Affordable Medicines, AvKARE, and Specialty segments.

However, adjusted earnings per share came in at $0.12, falling short of the anticipated $0.15.

Looking ahead, Amneal expects full-year 2025 revenue to range between $3 billion and $3.1 billion, exceeding Wall Street’s projection of $2.92 billion.

The company also forecasts adjusted earnings per share between $0.65 and $0.70, slightly below the $0.71 consensus estimate.

Co-CEOs Chirag and Chintu Patel emphasized the company’s focus on disciplined execution, innovation, and strategic investments as key drivers of its ongoing growth.

Amneal also highlighted the successful launch of CREXONT and noted that it had reduced net leverage to 3.9x—achieving this goal a year earlier than expected.

Despite missing earnings estimates, investors appear to be responding positively to the company’s revenue growth and bullish guidance, pushing shares higher in early trading.

ARB IOT Group Limited [ARBB] - Last Close: $0.48

ARB IOT Group Limited is a technology company specializing in IoT system integration.

Its stock is up 35% in premarket trade after announcing a Memorandum of Understanding (MOU) to establish an AI data center experimental laboratory in Malaysia, giving it an advantage in capturing growth in Malaysia’s AI and data-driven economy.

Elastic N.V. [ESTC] - Last Close: $101.28

Elastic N.V. is an enterprise data analytics and search platform.

Its shares are up 13% in early trade as the company beat its Q3 revenue estimates and issued strong guidance for fiscal 2025.

The firm reported $382.1M revenue in Q3, surpassing the $369M market estimate. Q4 revenue outlook of $379M–$381M and full-year guidance of $1.474B–$1.476B are also above expectations.

Organogenesis Holdings Inc. [ORGO] - Last Close: $3.07

Organogenesis Holdings Inc. is a regenerative medicine company specializing in advanced wound care, surgical, and sports medicine products to improve patient outcomes.

Its shares are climbing in premarket trading after reporting a strong Q4 earnings beat, with net revenue surging 27% year-over-year to $126.7 million. The company also returned to profitability, posting $7.7 million in net income, compared to a $0.6 million loss in Q4 2023.

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Everything Else

• China-U.S. tensions escalate as new tariffs threaten economic stability.

• Dell’s stock slides as investors await Q4 results amid AI-driven competition.

• Job cuts and restructuring aim to boost Autodesk’s margins and long-term growth.

• Monster Beverage’s international expansion fuels strong sales despite an earnings miss.

• HP’s stock dips after the company forecasts soft earnings amid U.S.-China trade tensions.

• Rocket Companies’ earnings show resilience despite missing revenue estimates.

• NetApp revises its revenue and profit guidance downward amid cautious business spending.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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