V. Bartlett

By: C. Hsu, V. Bartlett, J. Huang of Tuesday Capital, LLC A clear path forward with plenty of gas in the tank Back in January of this year, we published our initial long hypothesis on Clementia Pharmaceuticals (CMTA) as a focused company tackling a devastating disease with a promising drug compound. Since then, CMTA has kept to (and even surpassed) its clinical development timeline. Its stock price, however, has been more capricious, presenting numerous buying opportunities at discounted value.

By: J. Huang, C. Hsu, and V. Bartlett of Tuesday Capital, LLC Tuesday Capital’s Thesis Krystal Biotech (KRYS) is a promising company tackling monogenic dermatologic orphan diseases with its STAR-D gene therapy platform.

In the past year, LXRX has been battered down by a combination of “good-but-not-good-enough” Ph3 data and disappointing Xermelo sales. Currently trading at $12.80/share, we believe LXRX is undervalued, given that sotagliflozin at this point is only waiting to be approved by the FDA as the first oral drug for T1D (Type 1 diabetes) uncontrolled by insulin alone. The PDUFA date is set for 3/22/19, with the key risk being sotagliflozin’s increased rate of DKA (diabetic ketoacidosis).