It's a new year, and a new finch. Sort of. Solt DB Invest is making two changes to the platform at the start of 2024.
First, we're getting rid of our Flyers category for biotech stocks we cover. Solt DB Invest assigns categories to biotech stocks to signal the overall risk profile. However, we withheld our valuation models for Flyer positions, which were considered the riskiest stocks we covered. We've decided that strays a little too far from our intended value proposition when providing meaningful investment research. As such, we've introduced new models for our previous Flyers: Codexis, Krystal Biotech, and Twist Bioscience – all of which are reclassified as Growth (Speculative) positions. Each company previously had a model, but now that's been updated with recent events and upcoming news flow.
Second, Solt DB Invest is closing coverage of Selecta Biosciences and jettisoning Telesis Bio from our proposed coverage ecosystem. We'll soon publish deeper thoughts on the decision to close coverage of Selecta Biosciences (it's a completely different company following the merger with Cartesian Therapeutics). Meanwhile, we've decided to clean up the coverage ecosystem with more investable companies – and Telesis Bio, while a sleepy acquisition target, doesn't make the cut. It's simply too small and faces a ferocious competitive landscape in DNA synthesis.
We still intend to implement coverage of Cognition Therapeutics, a drug developer currently valued at $57 million, due to intriguing science in the fight against dementia and Alzheimer's disease. It remains by far the smallest and the riskiest stock in our coverage ecosystem, but with the National Institutes of Health (NIH) footing most of the bill for clinical trials, we've decided to share our research with members – for now. Our suggested allocations and model will reflect the significant risk profile of the micro-cap biotech stock.
Solt DB Invest will replace coverage of Selecta Biosciences (Cartesian Therapeutics) and Telesis Bio with MoonLake Immunotherapeutics (Nasdaq: MLTX) and Schrodinger (Nasdaq: SDGR). The former is a likely acquisition target thanks to its late-stage nanobody technology platform, while the latter is a trendier biotech stock that fits within our existing coverage of technology-enabled drug discovery alongside Exscientia, Recursion Pharmaceuticals, and Relay Therapeutics. We intend to introduce full coverage of most companies by the end of 2024. View our beta coverage ecosystem.
Solt DB is a public benefit company exploring the intersection of biology and finance. Subscriptions to investment research fund our work and keep us fiercely independent. For $25 per month or $225 per year, we help you understand the business of biotech and identify attractive prices for biotech stocks in real time.