January 17, 2018 6:50am

The buzz hums and murmurs … a deal between JUNO and CELG is right on target; having been partnered since 2015 giving CELG rights to commercialize JUNO's treatments

 

As the stock jumped in the aftermarket +$22.40 or +49.12% after closing down -$3.15 to $45.60

 

Selective sector companies rebound …

There is always a rush to pricing action when one company ups the ante

It does help the sector at the newest of lows

 

Pre-open indications: 2 SELLs and 5 BUYs


Higher open expected

Dow futures are UP +0.54% (+140 points) and NASDAQ futures are UP +0.37% (+25 points)

 

U.S. stock index futures posted sharp gains before Wednesday's open, ahead of major corporate earnings from the likes of Bank of America and Goldman Sachs.

Europe stocks moved lower with global sentiment curbed by a sharp reversal for equities on Wall Street in the previous session.

Asian markets closed in negative territory after Wall Street reversed a triple-digit point gain to close lower in the previous session.

 

Issues that will affect the trading day: some Bank quarterly earnings and the effects of Celgene’s (CELG) pursuit of JUNO and those “usual suspects” who will be affected by proximity …

Data docket: mortgage applications are due out at 7 a.m. ET, followed by the business leaders' survey at 8:30 a.m. ET and industrial production data at 9:15 a.m. ET. At 10 a.m. ET, the NAHB/Wells Fargo Housing Market Index is set to be released, while the Fed's Beige Book is due at 2 p.m. ET and the Treasury International Capital (TIC) data at 4 p.m. ET.

Issues on the political front: Concerns over a possible government shutdown, however, weighed on market sentiment, causing major markets to end in the red.

 

 

Henry’omics:

From Tuesday night’s closing bell post, the roller coaster was taking tickets. We were not having fun after a great pre-market expectation of a raging market as today’s non-amusement ride kept sloping.”

I also stated, “Sentiment is an attitude, a tone as revealed through the activity and price movement.”

Celgene (CELG) is in talks to buy biotechnology company Juno Therapeutics (JUNOI) which specializes in drugs that treat blood cancer. JUNO shares soared nearly 49% in premarket on the report. The news comes less than a week after CELG announced it would buy Impact Biomedicines for $7 billion.

Terms of the possible deal have not been revealed.

The winds of one company’s (JUNO) action fills the sails of the selected – those with partners or collaborators!

In multiple conversations of JUNO’s pricing, I am on the record as saying CELG would buy it on a low than a premium from past rumors …!!

 

The cell therapy sector’s record over 5 sessions (of 40 covered companies): The RegMed and cell therapy sector closed NEGATIVE on Tuesday, was closed on Monday, closed NEGATIVE on Friday, POSITIVE on Thursday and last Wednesday:

·         Tuesday closed NEGATIVE with 31 decliners, 9 advancers and 0 flats;

·         Monday was a market holiday

·         Friday closed NEGATIVE with 21 decliners, 19 advancers and 0 flat;

·         Thursday closed POSITIVE with 15 decliners, 22 advancers and 3 flat;

·         Last Wednesday closed POSITIVE with 18 decliners, 20 advancers and 2 flats;

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.73% in Wednesday’s pre-open

 

Companies in my headlights:

Bellicum Pharmaceuticals (BLCM) closed down -$0.50 to $8.46 with 403.9 K shares traded <3 month average = 375.6 K>. The potential of a JUNO acquisition will be good for the immuno-oncology companies; BLCM is up +$0.54 or +6.38% - BUY;

bluebird bio (BLUE) closed down -$7.35 to $163.35 and the aftermarket response is a positive +$11.65 or +7.13% after news of Celgene (CELG) potential to buy JUNO. BLUE is a collaborative partner of CELG and it is oversold in regard to its recent secondary offering at $185 by Goldman Sachs & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and Cowen acted as joint book-running managers of the offering with the gross proceeds of the offering being approximately $651.3 million – BUY;

Capricor (CAPR) closed down -$0.08 to $1.70 with 282.7 K shares traded <3 month average = 744.6 K shares> even after news of patent initiation but, as I stated the relationship between the research provider and the CEO is too close. CAPR should be more transparent. Last Friday’s stock pricing reflected +$0.05 to $1.78 with 479.4 K shares traded after Thursday’s $0.07 to $1.73 and last Wednesday’s +$0.01 to $1.66,. Cash is getting low and CAPR NEEDS to finance. It’s up from $1.57 in six (6) sessions; mark my words, the trigger will be pulled soon. CAPR is down -$0.04 or -2.35% in the aftermarket Maintaining SELL;

Cellectis SA (CLLS) closed down -$1.54 to $27.78 with 119.9 K shares traded <3 month average = 222.8 K shares>. The aftermarket indication is a positive +$1.72 or +6.19% as Celgene (CELG) sets off the acquis ion rumors and upside for potential pharma targets. CLLS is collaborating with Pfizer (PFE) who will also repatriate cash – BUY;

Intrexon (XON) closed down -$0.94 to $13.77 and was down in the aftermarket –0.87  or -6.32% after news of an offering Having started 2018 at $13.47, having seen a high of $14.71 and a low of $12.72, it could be an “Icarus” candidate – Maintaining SELL;

Juno Therapeutics (JUNO) closed down -$3.15 to $45.60 and was up +$22.40 or +49.12% on news and rumor of Celgene (CELG) making an acquisition move on its partner. JUNO does not yet have any FDA approvals for its CAR T drugs, but it released promising data from early trials for a blood cancer treatment in November - BUY;

Sangamo Therapeutics (SGMO) closed down -$1.00 to $17.30 with 2.27 M shares traded <3 month average = 1.4 M shares> after Friday’s +$1.60 to $18.30 with 2.27 M shares traded. Last week saw $17.15 (Thursday), $17.40, $16.90 (Tuesday) and Monday’s $16.70 while the previous week traded in a range of $17.20 to $17.55. The aftermarket indication is a positive +$0.31 or +1.76% - Oversold and Celgene’s (CELG) moves accentuated Pfizer’s (PFE) potential move. Maintaining BUY;

 

 

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.