Pharmaceutical filing citing Journal of Diabetes Science and Technology paper — Abbott Laboratories, 2020-10-21
Abbott LaboratoriesAbbott LaboratoriesNYSE ABT
Filings SEC · Quote Yahoo cited a paper published in the Journal of Diabetes Science and Technology in a regulatory filing with the U.S. Securities and Exchange CommissionU.S. Securities and Exchange Commission
Regulator · Website as a basis for its claims. The company read the manner in which it wrote the paper and the actual scope the paper demonstrated in sequence. The stock price movement for one month after the filing was written in terms of where it ranked compared to past cases of the same type. This is a hindsight judgment written after knowing the results. The paper was read only up to the abstract.
The disclosure wrote the paper in the press release like this
When a U.S.-listed company has something to inform its shareholders, the form it files with the Securities and Exchange Commission is called 8-K. Abbott Laboratories filed this document on 2020-10-21, and the item numbers were 2.02 Earnings Release and 9.01 Financial Statements and Exhibits. The company cited a paper published in Journal of Diabetes Science and Technology in the press release attached to it. If the sentence citing the paper is translated verbatim, it reads as follows.
"Accuracy of a 14-Day Factory-Calibrated Continuous Glucose Monitoring System With Advanced Algorithm in Pediatric and Adult Population With Diabetes." Journal of Diabetes Science and Technology, (September 2020). https://doi.org/10.1177/1932296820958754. 3 Among patient-applied sensors.
What the reader should first check is where the company placed the paper in the press release. Next, the reader should determine whether the paper supports the entire company claim or only a part of it. To answer the latter question, one must read the full paper. This article, which has read only the abstract, cannot provide an answer to that.
The scope of the paper mentioned in the abstract is limited to this.
The paper title is Accuracy of a 14-Day Factory-Calibrated Continuous Glucose Monitoring System With Advanced Algorithm in Pediatric and Adult Population With Diabetes and it was published in Journal of Diabetes Science and Technology on 2020-09-19. The authors are affiliated with Diabetes Care Center · Abbott Diabetes Care (United States) · AMCR Institute · Rainier Clinical Research Center. The summary at the beginning of the paper is called abstract. What this article has read is only up to there. This paragraph was written by a person after filtering out a draft written by a machine that read the abstract and compared numbers, so it is of a different grade than a full reading of the paper.
This is an accuracy study examining how well the second-generation continuous glucose monitor, which measures blood sugar for about two weeks when attached to the arm, matches laboratory blood measurements. Participants included type 1 and type 2 diabetes patients aged four years or older from seven locations in the United States, and measurements were taken multiple times at the hospital, divided by how many days had passed since the sensor was attached. Participants aged eleven years or older also underwent deliberate manipulation to raise and lower their blood sugar levels for comparison across a wide range. Since this is a study measuring accuracy, this paper does not answer whether using this device improves blood sugar management.
What the abstract does not answer remains in the full paper and its appendices. This article, which has not gone beyond there, leaves the blanks as they are. Readers should determine themselves which sentence in the abstract corresponds to the cited section cited by the company, by comparing the two citations above.
One month later, the stock price was within the middle half of the sample.
The remaining return after subtracting the portion that moves with the overall market is called excess return. The date is written as trading day, counting only the days the stock market is open. In terms of the calendar, 20 trading days are approximately one month. The excess return for the day of the regulatory filing and the following month are listed in the table below.
| Period | Excess return relative to the market | Meaning |
|---|---|---|
| Five trading days before the filing | +0.5% | The extent of movement before the filing |
| On the day of the filing | −1.7% | On the filing day or the first trading day thereafter |
| Accumulated over +1 to +5 trading days | +2.9% | One week |
| Cumulative +1~+20 trading days | −5.6% | One month |
A bundle of past cases of the same type is called a sample. The position counted from the bottom is expressed as a percentile. The one-month excess return of -5.6% in this case is within the bottom 51% of the 142 samples, placing it in the lower half.
| Sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | median | top 25% | top 10% | This case |
|---|---|---|---|---|---|---|
| Excess return | −31.9% | −20.1% | −7.4% | +5.5% | +19.5% | −5.6% |
Half of the sample falls between the two marks in the middle of the table. One checks from the table whether this case is inside or outside. The sample collects cases where U.S. listed companies wrote papers in 8-K over the past ten years. The company itself is excluded from the sample. The numbers written here are past facts, not rules to be applied to the next case.
After the disclosure, the company issued such documents
After the disclosure date, the company issued three 8-K filings, listed only by item numbers. In 8-K filings without titles, the item number indicates the type of content. One can determine whether it was an earnings announcement or a contract based on that number. What exactly happened is read in the original text of each link.
- 2020-11-12 8-K Item 1.01,1.02,2.03 — Material contract execution · Material contract termination · Debt occurrence
- 2020-11-20 8-K Item 5.02 — Changes in Directors and Executive Officers
- 2021-01-27 8-K Item 2.02, 9.01 — Earnings Announcement · Financial Statements · Attached Documents
What this article does not answer
This article, which reads only the abstract, does not answer what the paper re-examined, how it did so, or what it showed. Whether the paper cited by the company was cited further can be verified again by the OpenAlexOpenAlex
Data source · Website citation count. What will be seen next is whether the company's next 8-K again cites the same paper.
Glossary
- 8-K
- A voluntary report submitted to the Securities and Exchange Commission when a U.S. listed company has news to inform shareholders. It is categorized by item numbers such as earnings, contracts, and executive changes. All events in this article are derived from this document.
- Excess return
- The remainder after subtracting the overall market return from the stock return. It is used to observe the movement of the company alone by removing the portion where the market as a whole rises or falls.
- Trading day
- A date counting only days when the stock market is open. Since weekends and holidays are excluded, 20 trading days correspond to roughly one calendar month.
- Sample and percentile
- A bundle of past cases of the same type is a sample, and the position from the bottom is expressed as a percentile. A percentile of 10 means that nine out of ten cases performed better than this case.
- Abstract
- An abstract is placed at the beginning of a paper. The author writes in a few sentences what was done, how it was done, and what results were obtained. Without reading the full text, one cannot know the details or limitations of the methods.