Weekend Update #048

Nov 5

Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.

All eyes were on the Fed this week ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday, November 3, where members were slated to meet and discuss plans regarding monetary policy given the economic environment. Although the Fed has not indicated exactly when they would begin raising interest rates, many believe they will begin to do so before the end of 2022, and almost everyone expects the Fed to commence tapering of their $120-billion asset purchase program by the tune of $10 billion in Treasuries and $5 billion in mortgage-backed securities per month beginning in November. Indeed, Powell confirmed this pace of reduction in the asset purchase program for November and December, and that that pace would either be increased or reduced at the next FOMC meeting, pending an assessment of the economy by the committee at that point in time. Regarding interest rates, Powell emphasized that the maximum employment test had not yet been met given that although the unemployment rate is at a reasonable level, the participation rate is not yet there. He declined to comment further on rate decisions, stating the conference would focus primarily on the asset purchase program.Indices were in a bit of a holding pattern going into the FOMC meeting but seemed to breathe a sigh of relief after Chairman Powell’s press conference given that what was said was very much in line with everyone’s expectations. The week also had in store a slew of earnings releases by hundreds of companies, many covered by Blue Room, including Vertex (VRTX), Regeneron (REGN), Moderna (MRNA), Novavax (NVAX), Vimeo (VMEO), AirBnB (ABNB), Peloton (PTON), Pinterest (PINS), Guardant Health (GH), and Exact Sciences (EXAS). It was a whirlwind week as stocks reached new highs, as well as new lows. The S&P 500 finished the week up 1.87%, settling at 4,697.53 points while the tech-heavy NASDAQ climbed still higher, finishing the week up 2.62%, settling at 15,971.59 points. The Dow Jones Industrial Average climbed 1.25%, settling at 36,327.95 points.

Thank you Blue Room Team Leader OMAR GUZMAN.

ATAI LIFE SCIENCES CORPORATE PROFILE: atai Life Sciences is a clinical-stage biopharmaceutical company aiming to transform the treatment of mental health disorders. It was founded in 2018 as a response to the significant unmet need and lack of innovation in the mental health treatment landscape, as well as the emergence of therapies that previously may have been overlooked or underused, including psychedelic compounds and digital therapeutics

Novavax is a biotechnology company promoting improved global health through the discovery, development and commercialization of innovative vaccines to prevent serious infectious diseases and address urgent, global health needs. Our vaccine candidates, including both its coronavirus vaccine candidate (“NVX-CoV2373”), and our seasonal quadrivalent influenza vaccine candidate (“NanoFlu™”), are genetically engineered, three-dimensional nanostructures of recombinant proteins critical to disease pathogenesis. We believe that our protein-subunit-based candidates elicit differentiated responses that may be more efficacious than naturally occurring immunity or other vaccine approaches. Additionally, our Matrix-M™ adjuvant has been shown to enhance functional immune responses and has been well-tolerated in multiple clinical trials. To date, we have formulated many of the vaccine candidates in our pipeline with our Matrix-M™ adjuvant, including NVX-CoV2373 and NanoFlu™. Matrix-M™, has been shown to enhance immune responses and has been well-tolerated in multiple clinical trials.

Pinterest is where 459 million people around the world go to get inspiration for their lives. They come to discover ideas for just about anything you can imagine: daily activities like cooking dinner or deciding what to wear, major commitments like remodeling a house or training for a marathon, ongoing passions like fly fishing or fashion and milestone events like planning a wedding or a dream vacation.

We call these people Pinners. We show them visual recommendations, which we call Pins, based on their personal taste and interests. They then save and organize these recommendations into collections, called boards. Browsing and saving visual ideas on our service helps Pinners imagine what their future could look like, which helps them go from inspiration to action.

Pinterest is the productivity tool for planning your dreams. Dreaming and productivity may seem like polar opposites, but on Pinterest, inspiration enables action and dreams become reality. Visualizing the future helps bring it to life. In this way, Pinterest is unique. Most consumer internet companies are either tools (search, ecommerce) or media (newsfeeds, video, social networks). Pinterest is not a pure media channel; it is a media-rich utility.

Third Quarter 2021 Financial Results

Total revenues increased by 51% to $3.453 billion in the third quarter of 2021, compared to $2.294 billion in the third quarter of 2020. Total revenues excluding (i) REGEN-COV (casirivimab and imdevimab) net product sales in the United States and (ii) the Company's share of gross profits in connection with sales of casirivimab and imdevimab pursuant to the Roche collaboration agreement, increased by 18% to $2.649 billion in the third quarter of 2021, compared to the third quarter of 2020(1).

During the third quarter of 2021, the Company commenced deliveries of REGEN-COV under its September 2021 supply agreement with the U.S. government.

Total revenues also include collaboration revenues of $1.074 billion in the third quarter 2021, compared to $653 million in the third quarter of 2020. Sanofi collaboration revenue increased primarily due to the Company’s share of profits from commercialization of antibodies, which were $387 million in the third quarter of 2021, compared to $213 million in the third quarter of 2020. The change in the Company’s share of profits from commercialization of antibodies was driven by higher Dupixent profits. In addition, in both the third quarter of 2021 and 2020, the Company earned $50 million sales-based milestones from Sanofi based upon sales of antibodies outside the U.S. on a rolling twelve-month basis. In the third quarter of 2021, the Company also recorded Roche collaboration revenue of $127 million in connection with the true-up payment owed from Roche in connection with global gross profits from sales of the casirivmab and imdevimab antibody cocktail.

Airbnb, Inc. operates a platform for stays and experiences to guests worldwide. The company’s marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms and luxury villas. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

Peloton is the largest interactive fitness platform in the world, with a loyal community of more than 6.2 million members. We pioneered connected, technology-enabled fitness and the streaming of immersive, instructor-led boutique classes to our members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient, while fostering social connections that encourage our members to be the best versions of themselves. Our world-class instructors teach classes across a variety of fitness and wellness disciplines, including indoor cycling, indoor/outdoor running and walking, bootcamp, yoga, strength training, stretching, and meditation.

Unlimited motivation, delivered daily:

Whether you use the Bike, Tread or App, a Peloton Membership is your pass to classes that range in length and intensity level. You'll ride, run, flex and tone, and keep coming back for more.

SWEAT WITH THE BEST — Our diverse team of instructors guide every step of your workout, making each class challenging and fun.
BETTER EVERY DAY — We keep things fresh with frequent updates to our classes and software features. You can choose something new to sweat to every time.
SURPASS YOUR GOALS — Track your progress with in-depth metrics, climb the live leaderboard and push to new bests together.

MOVE TO THE MUSIC — From hip hop to classic rock, our instructor-curated playlists will keep you motivated and engaged.

Vimeo is the world’s leading all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. Vimeo’s comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform. Our platform enables any professional, team, and organization to unlock the power of video to create, collaborate and communicate. We proudly serve our growing community of over 200 million users — from creatives to entrepreneurs to the world’s largest companies. The company offers professional video hosting solutions for small businesses. It provides solutions for creative professionals, small businesses, enterprises, education sector, fitness centers, and faith teams. The company was founded in 2004 and is based in New York, New York.

Vertex is a biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company has multiple approved medicines that treat the underlying cause of cystic fibrosis (CF) — a rare, life-threatening genetic disease — and has several ongoing clinical and research programs in CF. Beyond CF, Vertex has a robust pipeline of investigational small molecule medicines in other serious diseases where it has deep insight into causal human biology, including pain, alpha-1 antitrypsin deficiency and APOL1-mediated kidney diseases. In addition, Vertex has a rapidly expanding pipeline of genetic and cell therapies for diseases such as sickle cell disease, beta thalassemia, Duchenne muscular dystrophy and type 1 diabetes mellitus.

EXACT SCIENCES: CHANGING LIVES, TOGETHER

Getting ahead of cancer is crucial no matter where people are in their cancer journey. From earlier cancer detection to treatment guidance and monitoring, we are helping people get the answers they need to make more informed decisions across the cancer continuum.

With a leading portfolio of products for earlier detection and treatment guidance, we help people face the most challenging decisions with confidence.

Our dedication to taking on the impossible fuels everything we do. We are continuously innovating, combining scientific rigor with an open-minded approach to deliver the next big thing.

OUR PURPOSE: We strive to change lives through earlier, smarter answers across the cancer journey.

OUR PROMISE: We relentlessly pursue life-changing answers in cancer that give people the clarity they need to take action, earlier.

OUR PRINCIPLES

Earlier Answers
Advanced Science & Technology
Human Spirit
Visionary Collaborations
Rooted in Communities

Guardant Health is a leading precision oncology company dedicated to helping conquer cancer through our proprietary blood tests, vast data sets, and advanced analytics.

Cancer is data starved. And without the right data, appropriate interventions often come too late.

To select the best treatment, doctors and patients must have access to detailed genomic information about the disease. But this information is not easy to get. Traditional tissue biopsies require physical access to tumor tissue and come with serious risks for some patients. And for many patients, they aren’t even an option. In addition, they do little to help detect cancer early, when patients have the best chance at successful treatment.

We believe the key to conquering cancer is unprecedented access to its molecular information throughout all stages of the disease. We are developing a solution through tests that require only a blood sample.

Today, Guardant’s blood tests are enabling timely therapy selection for patients with cancer while we also advance programs for recurrence detection and early cancer detection. In addition, we are working together with pharmaceutical companies to discover and understand new treatment approaches that lead to better outcomes for patients.

Moderna is a commercial stage biotech company based in Cambridge, Massachusetts. Founded in 2010, the company aims to pioneer a new class of medicines made of messenger RNA, or mRNA. Moderna has an extensive development pipeline of therapeutic candidates ranging across its six modalities: Prophylactic Vaccines, Systemic Secreted & Cell Surface Therapies, Cancer Vaccines, Intratumoral Immuno-Oncology, Localized Regenerative Therapeutics and Systemic Intracellular Therapeutics. Currently, Moderna’s only commercial therapeutic is mRNA-1273 -- its COVID-19 vaccine. Moderna is traded on the NASDAQ Exchange under the ticker symbol MRNA. Moderna is a recent addition to the S&P 500 index.

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THIS WEEK’S

UPDATE

— DRY STORAGE —

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We have investors who have invested in this brand.

THE WOMEN’S BAKERY

BAKE SALE POP-UP

SUNDAY NOVEMBER 7th

8AM - 2PM

AT DRY STORAGE

Join us for The Women’s Bakery Pop-Up on Sunday, November 7th at Dry Storage! Purchase pastries inspired by a Women’s Bakery Recipe from 8AM-2PM*. At 2PM join us for a conversation with The Women’s Bakery FOunder Markey Culver an Chef Kelly Whitaker followed by a Q&A.
Refreshments will be provided.

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100% of sales from these items will go directly to the organization.

MEET MARKEY CULVER

Markey Culver is the founder and Co-Director of The Women’s Baker. She believes that bread can be a vehicle for improving children’s nutrition and a medium for social and economic empowerment for women.

WATCH HER TEDTALK

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— BRUTØ —

#ØFFTHEGRILL

Brutø & BØH partnered with Madre Mezcal for cocktails, #offthegrill eats from the Pinchi grill and a live DJ set. 1% of all sales were donated to an organization through Mano de Madre, which helps support female run non profit organizations working to educate, empower, and give resources to women and underserved kids of Oaxaca.

The event featured a limited menu of grilled elote as well as rabbit, beef tip, and blue oyster mushroom tacos.

BLUE ROOM ART

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Guadalajara

A TRIP THROUGH THE GUADALAJARA ART FAIR WITH
BLUE ROOM FOUNDER MINYOUNG SOHN

2021 OCT 28 - OCT 30

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Thursday October 28, 2021: The opening dinner is at the incredible Restaurante ALCALDE. Tonight is special because Chef Kelly Whitaker and Chef Michael De Leon are cooking alongside Alcalde Executive Chef Paco Ruano

Restaurant Alcalde is one of the top restaurants in Latin America. Chef Paco Ruano is a permanent nonconformist. His cooking style accentuates authentic Mexican flavors through the prism of elegant European culinary simplicity.

Id Est Hospitality Group of Boulder, Colorado owns and operates four highly acclaimed restaurants in BASTA, The Wolf’s Tailor, Dry Storage and BRUTØ. Through the Museum of Contemporary Art Denver, Id Est Founder Chef Kelly Whitaker befriended Chef Paco Ruano. Mssrs. Whitaker and Ruano were top chefs invited to cook for the legendary Beefsteak Dinners.

Restaurant Alcalde posts an update on its Instagram @restalcade that the BRUTØ PoP Up Dinner is “Sold Out”.

Denver, Colorado and Guadalajara, Jalisco: Our flight arrived hours later than planned, so we raced straight to Alcalde. We were hungry and glad to be served courses of food within minutes of each other.

11:39 P.M. Some of us arrived late, very late.

12:25 AM. Chef Paco Ruano visits to great fanfare.

12:45 AM. Wrapping up and awaiting dessert.

4:47 A.M. What a night.

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EStudio Sarabia

Open House 4 to 8 PM

On Saturday morning, we had lunch at the beautiful home of American friends in Chapala. Refreshed after a day of lunch and relaxation, we boarded a rented sprinter van and drove up an hour to the studio of Eduardo Sarabia located in the historic city center of Guadalajara.

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Leslie Herod pauses for a picture. Leslie is an American politician elected to the Colorado House of Representatives. She is a Trustee of the Museum of Contemporary Art Denver.

Eduardo Sarabia *Cabo Sunset Daze, 2020*
Oil on Linen 185 x 255 cm.

Eduardo Sarabia *Untitled, 2020*
Oil on Linen 142 x 199 cm.

Eduardo Sarabia *Silent Light, 2020*
Oil on Linen 185 x 255 cm.

This painting will be installed at Blue Room HQ.

Eduardo Sarabia Ceramics

Suena Hoy in Spanish ≅ Sounds Today in English

Estacion Material

Volume 1. This is the first year of the traveling version of the Material Art Fair. The exhibition is held at the legendary ceramic factory owned by the family of Jose Nuro Suro.

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Exhibitors
Galleries:

Arroniz, Mexico City

Curro, Guadalajara

Gaga, Mexico City and Los Angeles

Galería Enrique Guerrero, Mexico City

Galería Karen Huber, Mexico City

Galería Mascota, Mexico City

Galería MUY, San Cristóbal de las Casas

Galería RGR, Mexico City

Galería Tiro al Blanco, Guadalajara

Galerie Nordenhake, Mexico City and Berlin and Estocolmo