Solid Biosciences Inc. (SLDB) stock prices were up by 2.91% as of the market closing on June 8th, 2021, bringing the price per share up to USD$4.06 at the end of the trading day. Subsequent current market fluctuations have seen the stock soar by 3.20%, bringing it up to USD$4.19.
Meme Stock Phenomenon
In the absence of significant recent news or changes in fundamentals, SLDB’s fortuitous surge in the value of its equity is largely attributable to the growing meme stock phenomenon that has taken over the market. As users of the social media platform, Reddit, collaborate and target underdog companies with high short interests to artificially drive the prices up, retail investors profit while corporate investors scramble to mitigate drastic losses.
Collaboration Revenue Report
Collaboration revenue was reported at USD$3.3 million for the first quarter of the fiscal year 2021, up from no collaboration revenue being reported for the same time period of the year prior. The year-over-year increase is largely attributable to an increase in collaboration revenue related to research services and the reimbursement of expenses from the Collaboration Agreement with Ultragenyx.
Research and Development costs were down to USD$14.2 million in the first quarter of fiscal 2021 from the USD$19.7 million reported in the year-ago quarter. This difference is largely attributable to the lower expenses related to SGT-001, the company’s lead product candidate. This was driven by a reduction in manufacturing expenses, clinical costs, and unallocated R&D costs.
General and administrative costs were up from USD$5.3 million in the first quarter of the previous fiscal year to USD$6 million reported for Q1 2021. This year-over-year difference is largely attributable to the increased workforce cost that resulted from the company’s progression of its IGNITE DMD clinical trial. Net loss was reported at USD$16.9 million for Q1 2021, with Q1 2020 having reported USD$26.7 million.
Solid Liquidity Position
The company reported having cash and cash equivalents in the amount of USD$268.5 million as of March 31st, 2021. USD$143.8 million of their total liquidity position was generated through its underwritten public offering earlier in the first quarter of the fiscal year 2021. This stellar liquidity position supports the company’s forecast of being able to fund its operating expenses and capital expenditures through to the fourth quarter of the fiscal year 2022.
Future Outlook for SLDB
Armed with the inflated value of its equity, SLDB is poised to capitalize on this fortuitous opportunity to situate itself for a post-pandemic economy. The company is keen to continue its trajectory of success and use the springboard of the meme stock craze to usher in more organic growth over the future. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.