Pharmaceutical filing citing Scientific American paper — Cartesian Therapeutics, 2022-04-06
Cartesian TherapeuticsCartesian TherapeuticsNASDAQ RNAC
Filings SEC · Quote Google cited a paper published in Scientific American in a regulatory filing with the U.S. Securities and Exchange CommissionU.S. Securities and Exchange Commission
Regulator · Website. The company's manner of writing about the paper and the actual scope of the paper were read in order. The stock price movement for one month after the filing was compared to past cases of the same type to determine its position. 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 shareholders, it files a current report with the Securities and Exchange Commission called 8-K. The item numbers in the document filed by Cartesian Therapeutics on 2022-04-06 were 8.01 Other Events · 9.01 Financial Statements and Exhibits. The company cited a paper published in Scientific American in the press release attached to it. The sentence citing the paper, copied verbatim from the original, is as follows.
In addition, any forward-looking statements included in this presentation represent the Company’s views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date.
What readers should look at first 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 only read the abstract and cannot answer that question.
The scope of the paper discussed in the abstract ends here.
The paper title is Autoimmune Disease, by the Numbers and it was published in Scientific American on 2022-04-01. The authors' affiliations were not confirmed. The summary at the beginning of the paper is called abstract. This article only read up to there. This paragraph was rewritten by a person after filtering a draft written by a machine reading the abstract by numerical comparison, and thus differs in quality from a full-text reading and original judgment.
This article is not an academic paper but an article from the popular science magazine Scientific American. It has no abstract and was not summarized, and the only thing that can be known from the title is that it is an article briefly covering autoimmune diseases with numbers. The sentence cited by the company is above, copied verbatim.
What the abstract does not answer remains in the full text and appendix. This article leaves the blanks as they are without going further. Readers should compare the two citations above to determine which sentence in the abstract corresponds to the part cited by the company.
A month later, the stock price was in the bottom quarter of the sample.
The return remaining 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 when the stock market is open. In terms of a calendar, 20 trading days are approximately one month. The excess return for the day of this regulatory filing and the following one month are listed in the table below.
| Period | Excess return compared to the market | Meaning |
|---|---|---|
| 5 trading days before the filing | −0.1% | The extent already moved before the filing |
| Day of the filing | −0.4% | Day of the filing or the first trading day after |
| +1~+5 trading days cumulative | −22.7% | One week |
| +1~+20 trading days cumulative | −34.6% | 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 -34.6% for this case is within the bottom quarter, at the 9% position from the bottom among 142 cases in the sample.
| Sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | Median | Upper 25% | Upper 10% | This case |
|---|---|---|---|---|---|---|
| Excess return | −31.8% | −20.1% | −6.9% | +5.5% | +19.5% | −34.6% |
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 that range. The sample consists of cases where U.S. listed companies cited papers in 8-K filings over the past ten years. The company itself is excluded from the sample. The numbers listed here are historical facts, not rules to apply to future cases.
There are two additional cases where the same company cited papers in 8-K filings, and they are included together in the table below.
| Disclosure date | the journal of the paper | one month excess return |
|---|---|---|
| 2022-02-16 | Nature CommunicationsNature Communications Journal · Website | −27.0% |
| 2022-04-13 | Scientific American | −16.5% |
after the filing, the company issued such documents
after the filing date, the company issued three 8-K filings. Only the item numbers are listed here. In 8-K filings without titles, the item numbers indicate the type of content. Whether it was an earnings announcement or a contract can be identified by the number. The details of what happened are read in the original text of each link.
- 2022-04-07 8-K Item 1.01, 8.01, 9.01 — Material contract execution · Other events · Financial statements · Exhibits
- 2022-04-13 8-K Item 7.01, 9.01 — Reg FD disclosure · Financial statements · Exhibits
- 2022-05-05 8-K Item 2.02, 9.01 — Earnings announcement · Financial statements · Exhibits
what this article did not answer
This article, which reads only abstracts, cannot answer what method the paper used, what it showed, and to what extent. How many times the paper cited by the company was cited afterward can be reconfirmed through the OpenAlexOpenAlex
Data source · Website citation count. The next thing to look at is whether the company's next 8-K again cites the same paper.
Glossary
- 8-K
- A spontaneous report submitted to the Securities and Exchange Commission when a U.S. listed company has something to inform shareholders. It is categorized by item numbers such as earnings, contracts, and executive changes. All events in this article come from this document.
- Excess return
- The remainder after subtracting the overall market return rate from the stock return rate. 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 date counting only the days when the stock market is open. Since weekends and holidays are excluded, 20 trading days are approximately 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
- 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 results were obtained. Without reading the full text, one cannot know the details or limitations of the method.