October 21, 2021 5:25pm

Investors are troubled about reports that inflation pressures are eroding margins and what that may mean for the stock market

News: bluebird bio (BLUE) will withdraw the regulatory marketing authorization for Skysona (elivaldogene autotemcel) in the European Union.

Patterns of pump and promote must be examined by the SEC: Biostage (BSTG) closed down -$0.094 with 265 shares traded after Wednesday’s +$0.30 with 8,356 shares traded, Tuesday’s flat with 1,500 shares traded, Monday’s flat with 4,000 shares traded

Pre-open indication results: 5 Hit and 1 MISS

My version of the session’s “indications” is about what you need to know; it’s what did happen after the opening, mid-day and to the close

An objective, fact and numbers-based narrative – check the numbers!

The Dow closed DOWN -6.25 points (-0.02%); the S&P closed UP +13.59 points (+0.30%) while the Nasdaq closed UP +0.62 points (+0.62%)

 

Henry’omics:

The S&P inclined on Thursday although the Dow declined and S&P followed the Nasdaq retaking their record highs in the prior session.

 

Economic Data Docket: Jobless claims fell to a new pandemic low last week, the Labor Department reported. Initial job claims came in at 290,000 for the week ending Oct. 16, which is down from the previous week by 6,000 and lower than the 300,000 estimated by economists.

 

News (continued): BLUE will also withdraw marketing authorization of the biologic in the UK. Skysona (elivaldogene autotemcel, Lenti-D), one-time gene therapy, is indicated for early cerebral adrenoleukodystrophy (CALD) in patients under 18 years of age with an ABCD1 genetic mutation. Adrenoleukodystrophy (ALD) is a disease linked to the X chromosome due to fatty acid buildup caused by a defect in the very long chain of fatty acids transporter in peroxisomes, resulting in damage to the myelin sheath of the nerves, hence seizures and hyperactivity. In addition, the company will withdraw authorizations for Zynteglo (betibeglogene autotemcel) in the EU and UK in early 2022.

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what’s happening …

  • Thursday opened positive at 25/8, 1 flat and 1 acquired, strayed negative at the mid-day at 16/17, 2 flats and 1 acquired, ending with a negative close of 15/15, 2 flats and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “RegMed Investors’ (RMi) pre-open: markets and share pricing risks deflate sentiment = uncertainty. There’s always a capricious twist to this market and slim pickings in pre-open indications.” …  https://www.regmedinvestors.com/articles/12148

 

Pre-open indication results: 4 Hit: < SELL: Biostage (BSTG -$0.094 with 265 shares traded); bluebird bio (BLUE -$0.59), Editas Medicine (EDIT +$0.06), Sage Therapeutics (SAGE +$0.33), Intellia therapeutics (NTLA +$5.07)> and 1 MISS < Pluristem (PSTI +$0.26),>

 

Key Metric - volume:

  • Sector volume was LOW with 3 of the 15-upside having higher than the 3-month average volume with LOW volume of 3 of 17-downside having higher than the 3-month average volume;

 

There are clear winners and losers

Jumping with share pricing momentum (10 of 15):

  • Intellia Therapeutics (NTLA +$5.07 after Wednesday’s -$3.54, Tuesday’s +$1.85 and Monday’s +$0.34),
  • Global Blood Therapeutics (GBT +$1.57 after Wednesday’s -$0.52, Tuesday’s -$0.40 after Monday’s +$0.19),
  • Ultragenyx (RARE +$1.44 after Wednesday’s -$1.08),
  • ReNeuron (RENE.L +$1.00 after Wednesday’s -$4.50 and Tuesday’s flat)
  • BioLife Solutions (BLFS +$0.54 after Wednesday’s +$0.38, Tuesday’s +$0.46 and Monday’s +$0.68),
  • Alnylam Pharmaceuticals (ALNY +$0.51 after Wednesday’s -$2.77, Tuesday’s +$2.69 and Monday’s -$4.66),
  • Sage Therapeutics (SAGE +$0.33 and Wednesday’s +$0.61, Tuesday’s -$3.78 and Monday’s -$0.87),
  • Cellectis SA (+$0.29 after Wednesday’s +$0.12),
  • Pluristem (PSTI +$0.26 after Wednesday’s +$0.08),
  • Regenxbio (RGNX +$0,23 after Wednesday’s +$0.11, Tuesday’s -$0.68 and Monday’s -$0.57),

Hammered in today’s market (10 of 17):

  • CRISPR Therapeutics (CRSP -$1.31 after Wednesday’s -$1.89, Tuesday’s +$4.05 after Monday’s -$0.79),
  • bluebird bio (BLUE -$0.59),
  • Voyager Therapeutics (VYGR -$0.35),
  • uniQure NV (QURE -$0.23),
  • Ionis Pharmaceuticals (IONS -$0.19 after Wednesday’s -$0.76, Tuesday’s +$1.03 and Monday’s -$4.85),
  • Vericel (VCEL -$0.16 after Wednesday’s -$1.87, Tuesday’s +$0.55 after Monday’s +$1.26),
  • Chinook Therapeutics (KDNY -$0.14),
  • Biostage (BSTG -$0.094 after Wednesday’s +$0.30, Tuesday’s and Monday’s flat),
  • Fate Therapeutics (FATE-$0.09 after Wednesday’s -$1.60, Tuesday’s +$1.06 and Monday’s -$1.13),
  • Verastem (VSTM -$0.06),

Closing Flat:

  • 1 – Precigen (PGEN), Homology Medicine (FIXX) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Thursday, the IBB closed up +0.76% and XBI closed up +0.47%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.48 points or -3.10% at 15.01

 

October, the first month of Q3/21:

Thursday closed negative with 15 advancers, 17 decliners, 2 flats and 1 acquired

 

The BOTTOM LINE: I ate some dust yesterday … re prognostications; but today, how many right calls were offset by … early calls!

Big pharma healthcare sector has investors grinning on solid Q3 reports even as some worry that I our universe of stem, cell and gene therapy releases is too early to consider celebration.

We'll be seeing the results in the next couple of weeks as Alnylam Pharmaceuticals (ALNY) on 10/28 followed by Sage Therapeutics (SAGE) on 11/2, Vericel (VCEL on 11/9 and Athersys (ATHX) on 11/15 – so far.

Once again, a large number of stem, cell and gene therapy stocks showed strength with lackluster moves meaning – low volume.

Reiterating, “the stem, cell and gene therapy sector is still seen as vulnerable to extreme moves in either direction, overbought and oversold categories as risk stimulates the susceptibility!”

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

WHY do I keep analyzing Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.

Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.