Pharmaceutical filing citing Scientific American paper — Cartesian Therapeutics, 2022-04-13
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 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. 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. The item numbers of the document filed by Cartesian Therapeutics on 2022-04-13 were 7.01 Reg FD disclosure and 9.01 financial statements · attached documents. The company cited a paper published in Scientific American in the press release attached to it. If the sentence citing the paper is translated verbatim, it reads 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 first look at is where the company placed the paper in the press release. Next, they should determine whether the paper supports the company's entire claim or only a part of it. To answer the latter question, one must read the full paper. This article, which has only read the abstract, cannot provide an answer.
The scope of the paper discussed in the abstract ends here.
The paper's title is Autoimmune Disease, by the Numbers and it was published in Scientific American on 2022-04-01. The authors' affiliations have not been confirmed. The summary at the beginning of the paper is called abstract. This article has read only up to that point. 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. Since the abstract is not publicly available, it has not been summarized. What can be known from the title is that it is an article briefly covering autoimmune diseases. The sentence cited by the company is presented verbatim above.
What the abstract does not answer remains in the full text and appendices. This article, which has not reached those sections, leaves the blanks as they are. 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 within the middle half 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 the regulatory filing and the following one month in this case are listed in the table below.
| Period | Excess return relative to the market | Meaning |
|---|---|---|
| 5 trading days before the filing | −17.6% | The extent already moved before the filing |
| Day of the filing | −5.1% | Day of filing or the first trading day after |
| +1~+5 trading days cumulative | −19.2% | One week |
| +1~+20 trading days cumulative | −16.5% | 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 -16.5% in this case is within the bottom 34% of the 142 samples, placing it in the lower half.
| Sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | Median | Upper 25% | Upper 10% | This case |
|---|---|---|---|---|---|---|
| Excess return | −31.9% | −20.1% | −6.9% | +5.5% | +19.5% | −16.5% |
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 US-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% |
| 2022-04-06 | Scientific American | −34.6% |
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.
- 2022-05-05 8-K Item 2.02,9.01 — Earnings announcement · Financial statements · Attached documents
- 2022-05-18 8-K Item 8.01,9.01 — Other events · Financial statements · Attached documents
- 2022-06-03 8-K Item 3.01 —
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 rechecked by the OpenAlexOpenAlex
Data source · Website citation count. The next thing to see 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 its shareholders. It is categorized by item numbers such as earnings, 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 of this company alone by removing the portion where the market as a whole went up or down.
- Trading day
- A date counting only the days the stock market is open. Since weekends and holidays are excluded, 20 trading days are about a month in the calendar.
- 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, the details and limitations of the method cannot be known.