Latest / Bloomberg Intelligence / WBB's Brozak on Biotech Picks: CEMP, TTOO, OMER (Audio)

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WBB's Brozak on Biotech Picks: CEMP, TTOO, OMER (Audio) · Bloomberg Intelligence

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  Speaker 1: zero percent. And that's a Bloomberg business flash. You're listening
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  Speaker 1: to taking stock with Pim Fox and Kathleen Hayes on
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  Speaker 1: Bloomberg Radio. All right, I want to take stock of
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  Speaker 1: the biotech sector. It's been all over the map lately,
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  Speaker 1: but cell side analysts continue to love this. So let's
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  Speaker 1: bring in Steve Brozac right now, President and managing partner
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  Speaker 1: w BB Securities. Also a marine, also active in the
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  Speaker 1: political space. Also apparently, were you an Olympic fencer, Steve,
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  Speaker 1: I was actually competing on the Junior Olympic side, but
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  Speaker 1: just watching Olympics now and my former coaches, the American
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  Speaker 1: coach and one of the guys that they I competed against,
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  Speaker 1: his son just won the silver and men's foil. So
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  Speaker 1: that's that's an aside. How's that? I feel like that's
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  Speaker 1: close enough. Junior Olympics is close enough. To Olympics. You know, right,
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  Speaker 1: I agree, right, but that doesn't work in investing, which
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  Speaker 1: is why you want a professional. Right. Okay, So you're
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  Speaker 1: a biotech and healthcare banker here, um, talk to me
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  Speaker 1: about some of the deals you maybe maybe see on
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  Speaker 1: the horizon. This year has been a kind of a
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  Speaker 1: slow deal year compared to the records that we saw
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  Speaker 1: last year. Yeah, and it's it's one of these situations
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  Speaker 1: where you've got a tale of the best and the worst. Um.
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  Speaker 1: You know, We've got three companies that we look at
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  Speaker 1: right now that I was looking to talk about, one
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  Speaker 1: of which is an antibiotics company, and it's obviously something
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  Speaker 1: that's really critical. The company is called Sempra and they
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  Speaker 1: were on taking stock just about two years ago. And frankly,
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  Speaker 1: it's a it's a critical antibiotics play. Asked about what
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  Speaker 1: the company does because taking a look at the Semperate
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  Speaker 1: it's down twenty five nearly so far this year. Based
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  Speaker 1: in Chapel Hill, North Carolina, right, and what they what
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  Speaker 1: they have is the next generation Z pack. It is
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  Speaker 1: the same sorry, um uh siro meycn is like the
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  Speaker 1: mainstay everyone every most A lot of people can relate
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  Speaker 1: to taking a pill twice and then four or five
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  Speaker 1: days of pills after that to deal with antibotic bacterial infections.
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  Speaker 1: It's it's the main stay of antibotics, but unfortunately resistance
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  Speaker 1: in the United States alone. So UM, this company, what
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  Speaker 1: they did and what they've done is they've developed a
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  Speaker 1: new antibotic called Solothera, which they're looking to introduce after
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  Speaker 1: after approval of course, uh, for dealing with community acquired pneumonia.
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  Speaker 1: But the real key here is that it's applicable for
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  Speaker 1: just about every other kind of bacterial infection. So basically,
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  Speaker 1: when you have the flu and you're dying, at least
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  Speaker 1: in on the Upper East Side in New York, you
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  Speaker 1: go to your doctor to give you a Z pack
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  Speaker 1: and you're gonna be just fine. Um. But a lot
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  Speaker 1: of people have have developed a resistance to that, and
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  Speaker 1: so Solithera is expected to what work in place of
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  Speaker 1: it exactly. Um. It's expected to go out there and
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  Speaker 1: to be the go to drug for not just the
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  Speaker 1: infectious disease doctors, but all the doctors that are out
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  Speaker 1: there that are dealing with people that frankly are are
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  Speaker 1: significantly sick and or have other uninary tract infections. Or
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  Speaker 1: other types of infections where they are just not getting better.
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  Speaker 1: Is it worth the dollars to share? No, I think
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  Speaker 1: it's worth a lot more than that. As a matter
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  Speaker 1: of fact, When when data came out, the stock went down,
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  Speaker 1: but it went down because some analysts didn't understand what
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  Speaker 1: they were seeing on the data side, and they finally
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  Speaker 1: have started to The analytical community has finally started to understand,
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  Speaker 1: and what you're now seeing is the stock pushing its
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  Speaker 1: way back based on the fact that people and investors
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  Speaker 1: particularly are beginning to understand that this drug will be
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  Speaker 1: approved and that it is critically important in the healthcare
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  Speaker 1: armamentarian for doctors today. So I don't want to spend
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  Speaker 1: the whole the whole day on this, but basically, if
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  Speaker 1: that drug gets through its lithera, then I'm saying a
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  Speaker 1: big drug maker comes in and takes out Sempra, because candidly,
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  Speaker 1: this drug was one of those drugs where people just said, oh,
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  Speaker 1: you can't get a new antibiotic approved, and this will
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  Speaker 1: be the first one in a generation. Because you really
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  Speaker 1: do want to see this company go out there and
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  Speaker 1: get other drugs into this system, and that's the critical
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  Speaker 1: need right now. Turn your attention now, so you too,
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  Speaker 1: h T two biosystems. This is developing innovative diagnostic products. Um,
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  Speaker 1: it is critical that we understand what we're treating. And
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  Speaker 1: in this case, T two is that paradigm shift. Right now,
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  Speaker 1: you're going to the hospital and you start to present.
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  Speaker 1: You know, you're in the intensive care unit and you
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  Speaker 1: have like a fungal infection. It takes three to five
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  Speaker 1: days for them to culture and figure it out. It's
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  Speaker 1: ninety year old technology. T two goes out there and
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  Speaker 1: within three to five hours can tell you exactly what
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  Speaker 1: it is within specificity because of mr I technology. And
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  Speaker 1: so what, uh is this already out there? Is this
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  Speaker 1: already working or do they still have to get it
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  Speaker 1: approved or get convinced hospitals to buy it. Disney Hospitals
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  Speaker 1: is the next step there in twenty hospitals right now
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  Speaker 1: and growing. Uh, you're looking at a situation where more
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  Speaker 1: Americans die from SEPs from sepsisce and prostate cancer, breast
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  Speaker 1: cancer and AIDS combined. So if you look at it,
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  Speaker 1: this is a critical next step. And the other part
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  Speaker 1: is the same technology and the same development pattern also
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  Speaker 1: applies for bacterial culture, bacterial analysis and for blood things.
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  Speaker 1: So this is the kind of technology that we we'd
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  Speaker 1: like to see go into the next generation and start
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  Speaker 1: to help out doctors and not just in the hospitals,
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  Speaker 1: but eventually everywhere. All right, that's uh T two. I
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  Speaker 1: beg your pardon. That's um uh Systems as symbol as
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  Speaker 1: T T O O OMIS. I want to give you
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  Speaker 1: a chance just to tell us quickly about um Omeris.
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  Speaker 1: They've got an approved product that they've worked through the
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  Speaker 1: entirety of this of the clinical approval system called Omidria,
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  Speaker 1: and it's used to go out there and facilitate eye surgery.
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  Speaker 1: It reduces the inflammation and it also reduces um any
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  Speaker 1: kind of pain outcomes. So you know, you look at
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  Speaker 1: America Grain cataract surgery, um is excuse me, a blockbuster
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  Speaker 1: potential and you see that. You know, the market right
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  Speaker 1: now is over a billion dollars with more than three
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  Speaker 1: million patients needing lens replacements. So this is one of
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  Speaker 1: those products that is starting to make its way into
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  Speaker 1: into the ophthalmological surgical system. I want to thank you
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  Speaker 1: very much for sharing the information with us. Steve Brozac
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  Speaker 1: is the president and managing partner of w BB Securities,
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  Speaker 1: talking about Sempra, T two Bioscience Biosystems and Omaris. Thanks
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  Speaker 1: for listening. This is Bloomberg coming up. Bloomberg Laws brought
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