Pharmaceutical filing citing Cell paper — Immunome, 2021-04-26
In a regulatory filing with the U.S. Securities and Exchange CommissionU.S. Securities and Exchange Commission
Regulator · Website, ImmunomeImmunomeNASDAQ IMNM
Filings SEC · Quote Yahoo cited a paper published in Cell as the basis for its claims. The company's manner of writing about the paper and the actual scope of the paper were read in sequence. The stock price movement for one month after the filing was compared with past cases of the same type. This is a retrospective 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. The item numbers in the document filed by Immunome on 2021-04-26 were 7.01 Reg FD disclosure and 9.01 financial statements · exhibits. The company cited a paper published in Cell in the press release attached to it. If the sentence citing the paper is translated verbatim, it reads as follows.
Harnessing the Human Memory B Cell Response To Develop Antibody - Based Therapeutics April 22, 2021 Immunome, Inc. 665 Stockton Drive, Suite 300 | Exton, PA 19341 610.321.3700 | www.immunome.com 2 Copyright © 2021 Immunome, Inc.
What readers should first look at is where the company placed the paper in the press release. Next, they 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 only read the abstract, cannot provide an answer.
The scope of the paper discussed in the abstract is limited to this extent.
The paper title is Multiple SARS-CoV-2 variants escape neutralization by vaccine-induced humoral immunity and it was published in Cell on 2021-03-12. The authors are affiliated with Brigham and Women's Hospital, Massachusetts General Hospital, Ragon Institute of MGH, MITMassachusetts Institute of Technology
University · United States · Website and Harvard, and Max Planck Institute for Infection Biology. The summary published at the beginning of the paper is called abstract. This article only read up to that point. This paragraph was rewritten by a person after filtering a draft written by a machine reading the abstract through numerical comparison, so it is of a different grade from a full-text reading and original judgment.
The abstract of this paper is not publicly available, so it was not summarized. What can be known from the title is that it discusses experimental results showing that multiple variants of COVID-19 evade the neutralizing effect of antibodies produced by vaccines. Details on which variants were tested with which antibodies are in the main text.
The abstract does not answer; the details remain in the main text and appendices. This article, which does not go there, leaves the blanks as they are. Readers compare the two citations above to determine which sentence in the abstract corresponds to the excerpt cited by the company.
A month later, the stock price was in the bottom quarter of the sample.
The portion of returns not explained by market-wide movements is called excess return. Dates are recorded as trading days, counting only days when the stock market is open. In calendar terms, 20 trading days amount to about a month. The excess return on the day of the regulatory filing and for the following month are presented in the table below.
| Period | Excess return relative to the market | Meaning |
|---|---|---|
| 5 trading days before the filing | +21.6% | Degree to which the stock moved before the filing |
| regulatory filing day | −7.6% | filing day or first trading day thereafter |
| +1~+5 trading day cumulative | −17.2% | one week |
| +1~+20 trading day cumulative | −37.8% | 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 -37.8% in this case is in the bottom quarter, at the 8th percentile among 142 samples.
| sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | median | top 25% | top 10% | this case |
|---|---|---|---|---|---|---|
| excess return | −31.8% | −20.1% | −6.9% | +5.5% | +19.5% | −37.8% |
Half of the sample falls between the two middle marks in the table. Check the table to see whether this case falls inside or outside of that range. The sample consists of cases where U.S.-listed companies cited papers in 8-K filings over the past decade. The company itself is excluded from the sample. The numbers listed here are historical facts, not rules to apply to future cases.
Another example of the same company reporting a paper in an 8-K filing is included in the sample below, together in the table.
| Filing date | The journal of the reported paper | Excess return in one month |
|---|---|---|
| 2021-03-29 | Cell | −7.1% |
After the filing, the company issued this document
Three 8-K filings issued by the company after the filing date are listed with only item numbers. In 8-K filings without titles, item numbers indicate the type of content, so it is possible to determine whether it was an earnings announcement or a contract. The details of what happened can be read in the original text of each link.
- 2021-05-12 8-K Item 2.02,9.01 — Earnings announcement · Financial statements · Attached documents
- 2021-05-20 8-K Item 1.01,8.01,9.01 — Significant contract execution · Other events · Financial statements · Attached documents
- 2021-06-01 8-K Item 1.01,5.07 — Material contract execution · Shareholders' meeting results
What this article does not answer
This article, which reads only the abstract, does not answer how the paper re-examined what and showed up to where by what method. How many times the paper cited by the company was cited afterward can be rechecked 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.
Explanation of terms
- 8-K
- A voluntary report submitted to the U.S. Securities and Exchange Commission when a listed company has something to inform its shareholders. The type is indicated by item numbers such as performance, contracts, and executive changes. All the events in this article come from this document.
- Excess return
- The remainder after subtracting the overall market return from the stock return. It is used to see the movement unique to this company by removing the portion where the market as a whole rose or fell.
- trading day
- a count of days when the stock market is open. weekends and holidays are excluded, so 20 trading days are about a 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
- a summary placed at the beginning of a paper. the author writes in a few sentences what was done, how it was done, and what was found. without reading the full text, details and limitations of the method cannot be known.