AI Creates More Time For Sunday Bloody Mary’s!
OMG, AI (we are using Copilot) is truly life-changing.
We believe AI will lead to 20% unemployment by 2030. But for many more others it is already making life better (easier, faster, more profitable) than we could have ever imagined. And we only are in round I.
Here’s a couple examples why..
This is massively bigger than the spread of the Internet. We launched, by the way, the Internet Stock Review in 1998, when we saw that tidal wave coming.
Unfortunately, unlike 2000 when there were dozens of small broker dealers taking start-ups public, shortly after their formation – now start-ups don’t even need to go public to raise money. So small cap plays are hard, if not impossible to find (..we think we found one, so stay tuned). So we won’t be starting the AI Stock Review. Well just add an AI ‘section’ to our website.
Anyway we were doing some research (on ourselves) and asked Copilot:
When did Goldman Sachs downgrade Immunomedics and why?
All we remembered is that it was three or four years ago and it was trading around $15. It would have taken probably 20 or 30 minutes searching “our own” website to find the answer.
No need for a research assistant -no need to hire one, and she guessed our follow up questions.
IN FIVE SECONDS she replied:
Goldman Sachs issued a $5 price target on Immunomedics (NASDAQ: IMMU) on April 3, 2020, after downgrading the stock from Buy to Sell. The downgrade was driven by serious FDA inspection findings at the company’s New Jersey manufacturing facility.
Details of the Downgrade
• Date: April 3, 2020
• Analyst: Paul Choi, Goldman Sachs
• Action: Double downgrade (Buy → Sell)
• Price Target: Cut from $24 to $5
• Reason:
• The FDA issued a Form 483 detailing 10 major observations at Immunomedics’ Morris Plains, NJ plant.
• Issues included quality control failures, inadequate procedures, poor implementation, and substandard equipment.
• Goldman Sachs believed these deficiencies made it unlikely that Immunomedics’ lead drug, sacituzumab govitecan (Trodelvy), would be approved at its upcoming June 2, 2020 FDA action date.
• The analyst also expressed caution about Immunomedics’ ability to execute other ongoing clinical studies without revenue from Trodelvy.
Market Reaction
• Following the downgrade, Immunomedics’ shares dropped about 12%, closing near $9.34.
• The downgrade reflected investor fears that the FDA would reject Trodelvy again, after a prior setback in 2019.
Summary
Goldman Sachs’ $5 price target in April 2020 was based on manufacturing compliance failures flagged by the FDA, which they believed jeopardized Trodelvy’s approval. Ironically, just weeks later (April 22, 2020), the FDA granted accelerated approval to Trodelvy, and Immunomedics’ stock skyrocketed — eventually leading to Gilead’s $21B acquisition at $88/share in September 2020.
Roland, would you like me to map out the analyst sentiment shifts on Immunomedics in 2020 (Goldman’s $5 target, then upgrades post‑approval, and finally the Gilead buyout) so you can see how quickly the narrative flipped?
After asking Copilot about the GoldmanSachs, we decided to see if it knew anything about us?
We asked, “When did the Biotech Stock review add Immunomedics to the Watch List and at what price, please?”
Biotech Stock Review added Immunomedics (NASDAQ: IMMU) to its Watch List in early 2017, when the stock was trading around $4–$5 per share.
📌 Context of the Watch List Addition
- Timing: Immunomedics was highlighted by Biotech Stock Review in February 2017, shortly after the company announced positive clinical data for its antibody‑drug conjugate sacituzumab govitecan (Trodelvy) in triple‑negative breast cancer.
- Price at the time: Shares were trading in the low single digits ($4–$5).
- Catalyst: The Watch List inclusion was driven by:
- Strong Phase II data showing meaningful tumor response rates.
- The potential of Trodelvy as a first‑in‑class ADC for breast cancer.
- Investor interest following Immunomedics’ licensing discussions with Seattle Genetics (which ultimately fell through).
📊 What Happened Next
- 2017–2018: Immunomedics’ stock began climbing as Trodelvy advanced toward pivotal trials.
- 2019: FDA initially rejected the company’s BLA due to manufacturing issues, causing a temporary setback.
- April 2020: FDA granted accelerated approval for Trodelvy.
- September 2020: Gilead Sciences acquired Immunomedics for $21 billion ($88 per share) — a massive premium compared to the ~$5/share level when Biotech Stock Review first flagged it.
✅ Summary
- Added to Watch List: February 2017
- Price at the time: ~$4–$5 per share
- Reason: Early clinical success of Trodelvy and strategic interest in ADCs
Roland, would you like me to pull the archived Biotech Stock Review newsletter from February 2017 so you can see the exact wording of their Watch List note on Immunomedics? That would give you the precise context they used when flagging it.
It’s an AI Party, just as we thought things couldn’t get any better or funner!
