WEBVTT - WBB's Brozak on Biotech Picks: CEMP, TTOO, OMER (Audio)

0:00:03.279 --> 0:00:06.680
<v Speaker 1>Global business news twenty four hours a day at Bloomberg

0:00:06.720 --> 0:00:09.760
<v Speaker 1>dot Com, the Radio plus Globile last and on your radio.

0:00:10.039 --> 0:00:14.200
<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters

0:00:14.200 --> 0:00:17.160
<v Speaker 1>on Katherine Cowderie and mixed. Close. As the SMP five foundered,

0:00:17.200 --> 0:00:20.040
<v Speaker 1>pulled back Froben's all time high, and the NASDAK gained,

0:00:20.320 --> 0:00:24.200
<v Speaker 1>scoring another record, Treasuries rallied while the dollar fell. Disappointing

0:00:24.239 --> 0:00:27.360
<v Speaker 1>retail sales added to speculation, but the Federal Reserve will

0:00:27.400 --> 0:00:29.480
<v Speaker 1>be in no rush to raise interest rates this year.

0:00:29.880 --> 0:00:32.520
<v Speaker 1>Data showed sales at retailers were little change in July,

0:00:32.640 --> 0:00:35.800
<v Speaker 1>as wholesale prices unexpectedly fell by the most and almost

0:00:35.800 --> 0:00:39.000
<v Speaker 1>a year. Futures traders now see forty two percent odds

0:00:39.000 --> 0:00:41.120
<v Speaker 1>of the US rate high this year. That's down from

0:00:41.200 --> 0:00:44.360
<v Speaker 1>forty nine percent yesterday. We check the markets every fifteen

0:00:44.360 --> 0:00:47.400
<v Speaker 1>minutes throughout the trading day. Dow Industrial iverage fell thirty

0:00:47.440 --> 0:00:49.479
<v Speaker 1>seven points, a loss of two tenths of a percent,

0:00:49.760 --> 0:00:52.200
<v Speaker 1>to close out the week at eighteen thousand, five hundred

0:00:52.280 --> 0:00:55.360
<v Speaker 1>seventy six. SMP five thundered down two points a tenth

0:00:55.360 --> 0:00:59.560
<v Speaker 1>of a percent four then ASTAT gained four points at

0:00:59.600 --> 0:01:02.720
<v Speaker 1>nine one tenth of a percent. I closed at fifty

0:01:02.800 --> 0:01:05.720
<v Speaker 1>two thirty two West Texas Intermediate crude oil up a

0:01:05.800 --> 0:01:10.080
<v Speaker 1>dollar sixteen and barrel two point seven sixty five spot

0:01:10.160 --> 0:01:14.479
<v Speaker 1>goled down eight dollars at one and the tenure treasury

0:01:14.520 --> 0:01:16.559
<v Speaker 1>of fifteen thirty seconds with the yield of one point

0:01:16.959 --> 0:01:21.480
<v Speaker 1>zero percent. And that's a Bloomberg business flash. You're listening

0:01:21.560 --> 0:01:25.080
<v Speaker 1>to taking stock with Pim Fox and Kathleen Hayes on

0:01:25.240 --> 0:01:30.080
<v Speaker 1>Bloomberg Radio. All right, I want to take stock of

0:01:30.440 --> 0:01:34.160
<v Speaker 1>the biotech sector. It's been all over the map lately,

0:01:34.280 --> 0:01:36.760
<v Speaker 1>but cell side analysts continue to love this. So let's

0:01:36.800 --> 0:01:40.640
<v Speaker 1>bring in Steve Brozac right now, President and managing partner

0:01:40.840 --> 0:01:46.440
<v Speaker 1>w BB Securities. Also a marine, also active in the

0:01:46.480 --> 0:01:50.480
<v Speaker 1>political space. Also apparently, were you an Olympic fencer, Steve,

0:01:51.760 --> 0:01:54.600
<v Speaker 1>I was actually competing on the Junior Olympic side, but

0:01:55.280 --> 0:01:58.040
<v Speaker 1>just watching Olympics now and my former coaches, the American

0:01:58.120 --> 0:02:00.800
<v Speaker 1>coach and one of the guys that they I competed against,

0:02:00.840 --> 0:02:02.840
<v Speaker 1>his son just won the silver and men's foil. So

0:02:03.200 --> 0:02:05.640
<v Speaker 1>that's that's an aside. How's that? I feel like that's

0:02:05.680 --> 0:02:09.440
<v Speaker 1>close enough. Junior Olympics is close enough. To Olympics. You know, right,

0:02:09.520 --> 0:02:13.239
<v Speaker 1>I agree, right, but that doesn't work in investing, which

0:02:13.320 --> 0:02:16.560
<v Speaker 1>is why you want a professional. Right. Okay, So you're

0:02:17.080 --> 0:02:21.280
<v Speaker 1>a biotech and healthcare banker here, um, talk to me

0:02:21.360 --> 0:02:23.799
<v Speaker 1>about some of the deals you maybe maybe see on

0:02:23.960 --> 0:02:26.639
<v Speaker 1>the horizon. This year has been a kind of a

0:02:26.760 --> 0:02:29.000
<v Speaker 1>slow deal year compared to the records that we saw

0:02:29.160 --> 0:02:32.280
<v Speaker 1>last year. Yeah, and it's it's one of these situations

0:02:32.280 --> 0:02:34.400
<v Speaker 1>where you've got a tale of the best and the worst. Um.

0:02:34.600 --> 0:02:36.920
<v Speaker 1>You know, We've got three companies that we look at

0:02:37.040 --> 0:02:38.840
<v Speaker 1>right now that I was looking to talk about, one

0:02:38.919 --> 0:02:41.399
<v Speaker 1>of which is an antibiotics company, and it's obviously something

0:02:41.480 --> 0:02:45.760
<v Speaker 1>that's really critical. The company is called Sempra and they

0:02:45.800 --> 0:02:49.760
<v Speaker 1>were on taking stock just about two years ago. And frankly,

0:02:49.840 --> 0:02:53.560
<v Speaker 1>it's a it's a critical antibiotics play. Asked about what

0:02:53.639 --> 0:02:56.320
<v Speaker 1>the company does because taking a look at the Semperate

0:02:56.360 --> 0:03:00.560
<v Speaker 1>it's down twenty five nearly so far this year. Based

0:03:00.600 --> 0:03:03.560
<v Speaker 1>in Chapel Hill, North Carolina, right, and what they what

0:03:03.720 --> 0:03:06.480
<v Speaker 1>they have is the next generation Z pack. It is

0:03:06.560 --> 0:03:10.959
<v Speaker 1>the same sorry, um uh siro meycn is like the

0:03:11.040 --> 0:03:14.960
<v Speaker 1>mainstay everyone every most A lot of people can relate

0:03:15.040 --> 0:03:18.120
<v Speaker 1>to taking a pill twice and then four or five

0:03:18.200 --> 0:03:22.720
<v Speaker 1>days of pills after that to deal with antibotic bacterial infections.

0:03:23.160 --> 0:03:26.799
<v Speaker 1>It's it's the main stay of antibotics, but unfortunately resistance

0:03:26.840 --> 0:03:30.079
<v Speaker 1>in the United States alone. So UM, this company, what

0:03:30.240 --> 0:03:32.639
<v Speaker 1>they did and what they've done is they've developed a

0:03:32.720 --> 0:03:36.280
<v Speaker 1>new antibotic called Solothera, which they're looking to introduce after

0:03:36.360 --> 0:03:40.840
<v Speaker 1>after approval of course, uh, for dealing with community acquired pneumonia.

0:03:40.960 --> 0:03:43.440
<v Speaker 1>But the real key here is that it's applicable for

0:03:43.560 --> 0:03:46.320
<v Speaker 1>just about every other kind of bacterial infection. So basically,

0:03:46.360 --> 0:03:48.560
<v Speaker 1>when you have the flu and you're dying, at least

0:03:48.720 --> 0:03:50.520
<v Speaker 1>in on the Upper East Side in New York, you

0:03:50.600 --> 0:03:52.160
<v Speaker 1>go to your doctor to give you a Z pack

0:03:52.440 --> 0:03:54.520
<v Speaker 1>and you're gonna be just fine. Um. But a lot

0:03:54.560 --> 0:03:57.360
<v Speaker 1>of people have have developed a resistance to that, and

0:03:57.560 --> 0:04:02.800
<v Speaker 1>so Solithera is expected to what work in place of

0:04:02.880 --> 0:04:06.120
<v Speaker 1>it exactly. Um. It's expected to go out there and

0:04:06.280 --> 0:04:08.960
<v Speaker 1>to be the go to drug for not just the

0:04:09.040 --> 0:04:11.560
<v Speaker 1>infectious disease doctors, but all the doctors that are out

0:04:11.640 --> 0:04:14.280
<v Speaker 1>there that are dealing with people that frankly are are

0:04:14.760 --> 0:04:18.560
<v Speaker 1>significantly sick and or have other uninary tract infections. Or

0:04:18.600 --> 0:04:21.839
<v Speaker 1>other types of infections where they are just not getting better.

0:04:22.480 --> 0:04:25.160
<v Speaker 1>Is it worth the dollars to share? No, I think

0:04:25.200 --> 0:04:26.720
<v Speaker 1>it's worth a lot more than that. As a matter

0:04:26.720 --> 0:04:29.560
<v Speaker 1>of fact, When when data came out, the stock went down,

0:04:29.680 --> 0:04:32.360
<v Speaker 1>but it went down because some analysts didn't understand what

0:04:32.440 --> 0:04:34.760
<v Speaker 1>they were seeing on the data side, and they finally

0:04:34.800 --> 0:04:38.799
<v Speaker 1>have started to The analytical community has finally started to understand,

0:04:39.279 --> 0:04:41.840
<v Speaker 1>and what you're now seeing is the stock pushing its

0:04:41.880 --> 0:04:45.760
<v Speaker 1>way back based on the fact that people and investors

0:04:45.839 --> 0:04:48.480
<v Speaker 1>particularly are beginning to understand that this drug will be

0:04:48.600 --> 0:04:52.080
<v Speaker 1>approved and that it is critically important in the healthcare

0:04:52.160 --> 0:04:54.520
<v Speaker 1>armamentarian for doctors today. So I don't want to spend

0:04:54.560 --> 0:04:57.000
<v Speaker 1>the whole the whole day on this, but basically, if

0:04:57.200 --> 0:05:00.320
<v Speaker 1>that drug gets through its lithera, then I'm saying a

0:05:00.400 --> 0:05:06.200
<v Speaker 1>big drug maker comes in and takes out Sempra, because candidly,

0:05:06.720 --> 0:05:09.120
<v Speaker 1>this drug was one of those drugs where people just said, oh,

0:05:09.200 --> 0:05:11.160
<v Speaker 1>you can't get a new antibiotic approved, and this will

0:05:11.160 --> 0:05:13.640
<v Speaker 1>be the first one in a generation. Because you really

0:05:13.720 --> 0:05:16.040
<v Speaker 1>do want to see this company go out there and

0:05:16.160 --> 0:05:18.560
<v Speaker 1>get other drugs into this system, and that's the critical

0:05:18.600 --> 0:05:21.159
<v Speaker 1>need right now. Turn your attention now, so you too,

0:05:21.400 --> 0:05:28.800
<v Speaker 1>h T two biosystems. This is developing innovative diagnostic products. Um,

0:05:28.920 --> 0:05:31.800
<v Speaker 1>it is critical that we understand what we're treating. And

0:05:31.880 --> 0:05:35.480
<v Speaker 1>in this case, T two is that paradigm shift. Right now,

0:05:35.640 --> 0:05:37.599
<v Speaker 1>you're going to the hospital and you start to present.

0:05:37.760 --> 0:05:39.520
<v Speaker 1>You know, you're in the intensive care unit and you

0:05:39.680 --> 0:05:42.160
<v Speaker 1>have like a fungal infection. It takes three to five

0:05:42.240 --> 0:05:44.120
<v Speaker 1>days for them to culture and figure it out. It's

0:05:44.240 --> 0:05:46.880
<v Speaker 1>ninety year old technology. T two goes out there and

0:05:46.960 --> 0:05:49.360
<v Speaker 1>within three to five hours can tell you exactly what

0:05:49.520 --> 0:05:55.000
<v Speaker 1>it is within specificity because of mr I technology. And

0:05:55.160 --> 0:05:57.880
<v Speaker 1>so what, uh is this already out there? Is this

0:05:57.960 --> 0:06:00.800
<v Speaker 1>already working or do they still have to get it

0:06:00.880 --> 0:06:04.680
<v Speaker 1>approved or get convinced hospitals to buy it. Disney Hospitals

0:06:04.800 --> 0:06:06.719
<v Speaker 1>is the next step there in twenty hospitals right now

0:06:06.800 --> 0:06:10.120
<v Speaker 1>and growing. Uh, you're looking at a situation where more

0:06:10.160 --> 0:06:14.600
<v Speaker 1>Americans die from SEPs from sepsisce and prostate cancer, breast

0:06:14.640 --> 0:06:17.000
<v Speaker 1>cancer and AIDS combined. So if you look at it,

0:06:17.120 --> 0:06:20.320
<v Speaker 1>this is a critical next step. And the other part

0:06:20.440 --> 0:06:23.480
<v Speaker 1>is the same technology and the same development pattern also

0:06:23.560 --> 0:06:29.039
<v Speaker 1>applies for bacterial culture, bacterial analysis and for blood things.

0:06:29.120 --> 0:06:31.440
<v Speaker 1>So this is the kind of technology that we we'd

0:06:31.520 --> 0:06:34.239
<v Speaker 1>like to see go into the next generation and start

0:06:34.320 --> 0:06:36.880
<v Speaker 1>to help out doctors and not just in the hospitals,

0:06:36.920 --> 0:06:40.680
<v Speaker 1>but eventually everywhere. All right, that's uh T two. I

0:06:40.760 --> 0:06:44.440
<v Speaker 1>beg your pardon. That's um uh Systems as symbol as

0:06:44.520 --> 0:06:47.160
<v Speaker 1>T T O O OMIS. I want to give you

0:06:47.200 --> 0:06:50.800
<v Speaker 1>a chance just to tell us quickly about um Omeris.

0:06:51.960 --> 0:06:53.920
<v Speaker 1>They've got an approved product that they've worked through the

0:06:54.120 --> 0:06:57.600
<v Speaker 1>entirety of this of the clinical approval system called Omidria,

0:06:57.880 --> 0:07:01.039
<v Speaker 1>and it's used to go out there and facilitate eye surgery.

0:07:01.240 --> 0:07:05.240
<v Speaker 1>It reduces the inflammation and it also reduces um any

0:07:05.360 --> 0:07:07.960
<v Speaker 1>kind of pain outcomes. So you know, you look at

0:07:07.960 --> 0:07:13.400
<v Speaker 1>America Grain cataract surgery, um is excuse me, a blockbuster

0:07:13.560 --> 0:07:16.200
<v Speaker 1>potential and you see that. You know, the market right

0:07:16.240 --> 0:07:19.640
<v Speaker 1>now is over a billion dollars with more than three

0:07:19.680 --> 0:07:22.560
<v Speaker 1>million patients needing lens replacements. So this is one of

0:07:22.600 --> 0:07:24.920
<v Speaker 1>those products that is starting to make its way into

0:07:25.280 --> 0:07:28.360
<v Speaker 1>into the ophthalmological surgical system. I want to thank you

0:07:28.520 --> 0:07:31.440
<v Speaker 1>very much for sharing the information with us. Steve Brozac

0:07:31.600 --> 0:07:34.880
<v Speaker 1>is the president and managing partner of w BB Securities,

0:07:34.920 --> 0:07:41.080
<v Speaker 1>talking about Sempra, T two Bioscience Biosystems and Omaris. Thanks

0:07:41.160 --> 0:07:48.000
<v Speaker 1>for listening. This is Bloomberg coming up. Bloomberg Laws brought

0:07:48.040 --> 0:07:50.480
<v Speaker 1>you by cash pro, the cash management platform from Bank

0:07:50.560 --> 0:07:52.840
<v Speaker 1>of America Merrill Lynch. Cash Pro lets you stay on

0:07:52.920 --> 0:07:56.120
<v Speaker 1>top of your working capital in real time. It's totally

0:07:56.200 --> 0:07:58.880
<v Speaker 1>pro business. That's the power of global connections.