Stock on Focus: Adverum Biotechnologies, Inc. (ADVM)

Company Profile:

Adverum Biotechnologies, Inc., a gene therapy company, engages in discovering and developing novel medicines that offer therapeutic benefit to patients suffering from chronic or debilitating disease. It primary focuses on developing AVA-101, which is in a Phase IIa trial for the treatment of wet age-related macular degeneration (AMD). The company is also developing AVA-201, a product candidate for the prevention of wet AMD; AVA-311 that is in preclinical studies for the treatment of juvenile X-linked retinoschisis, a rare genetic disease of the retina with no approved therapy; and AVA-322 and AVA-323 for the treatment of color vision deficiency. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was founded in 2006 and is headquartered in Menlo Park, California.

Recent News:

Adverum Biotechnologies, Inc. reported a loss of 36 cents in the second quarter of 2016, narrower than both the Zacks Consensus Estimate and the year-ago loss of 38 cents.

For the quarter ended June 30, 2016, revenues, consisting of revenue from collaborative research, were $0.3 million, compared to $0.2 million for the quarter ended June 30, 2015. Research and development expenses were $8.0 million for the quarter ended June 30, 2016 compared to $5.1 million for the quarter ended June 30, 2015.

On Aug.09, 2016, Adverum Biotechnologies, Inc. and Editas Medicine, Inc. (EDIT) announced a collaboration to explore the delivery of genome editing medicines to treat up to five inherited retinal diseases.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ADVM’s strengths can be seen in its strong growth. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 50.08. We rate Adverum Biotechnologies, Inc. (ADVM) a Strong BUY.