Biotech idea of the day: $GLTO. First of all a warning: This is a microcap company, and could be subject to extreme dilution. Tread very carefully. I’ve had my eye on Galecto for a while, as I suspected the IPF trial would fail and have thought the liver cirrhosis drug was interesting for over a year. There is definitely risk here given how distressed the stock is, but upside could be significant.

Biotech Idea of the Day: $OTIC. This co. has a number of injectable treatments for the ear, including ones for hearing loss and tinnitus that both read out mid-2022. Market cap is ~$105 M (including pre-funded warrants) and they have $98 M cash on hand as of the end of Q2. 1/18 Both these readouts could demonstrate proof of concept in indications with significant $ potential, (OPPY has $860 M peak sales for tinnitus, hearing loss believed to be >$1 billion), so the company’s valuation could be a multiple of where it is now if either succeeds. 2/18

Biotech thread of the day; $INFI. This company has a first-in-class, oral, once-daily, immuno-oncology development candidate that selectively inhibits PI3K-gamma. I think the valuation of this company is not reflective of the massive market opportunity for this drug. 1/10 Today $INFI showed positive results showing 85% increase in response rates and 57% vs 14% DCR in PD-L1 low patients with urothelial cancer. As this is a controlled study, I believe this demonstrates that the drug is active in this PD-L1 negative population. 2/10

1. I’m embarking on a tweet storm explaining why I think $GBT is significantly undervalued relative to analyst estimates (>10 with PTs of $60-$80 / share). I will cover 1) Efficacy, 2) Safety and 3) Market Potential. First efficacy. 2. $GBT MOA has some similarity to Hydroxyurea (which increases Fetal Hb) and $BLUE (creates % of Hb that doesn’t sickle). High % of occupied Hb (or fetal, or unsickling Hb) reduces sickling.