January 17, 2018 5:39pm
Risk was reflected in the weak trading ranges yet the IBB (+0.73%), XBI (+1.36%), XLV (+0.96%), IWM (+0.96%) and NASDAQ (+1.03%) are up as CELG proposed to JUNO
Do investors really know what they own and want to invest in?
There is no magic dust in this sector even with CELG’s interest in JUNO and its choosy sector effects
The oversold status of the “usual suspects” will be a set-up for a milder rebound
Pre-open indications: 5 hits and 2 miss (1 by a penny)
Rumor: Celgene (CELG) which already owns about 10% of JUNO would be acquiring a new kind of cancer treatment, known as CAR-T. The price tag of an outright purchase will be high between $5 - $8 billion …
Of interest: MiMedx Group, Inc. (MDXG) the first patients have been randomized and enrolled in its P3 Investigational New Drug (IND) clinical trial for micronized amniotic tissue, AmnioFix® Injectable, in the treatment of Achilles Tendonitis.
Out and about: The Biostage (BSTG +$0.00) chronicles … don’t be fooled!
Wednesday’s results have implications to Thursday’s sector activity as a daily report may say little or a lot and it serves as insurance that all indications are being examined and evaluated!
Henry’omics:
From the pre-open’s newsletter, “…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 …!!
I also stated, “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.”
A memory day, the Dow rose 300 points to a record high, breaking above 26,000 once again. The index first broke above the milestone mark on Tuesday, but failed to close above it.
Major indexes are up more than 4% for the year, the best such start since 2003 for the Dow and the S&P 500.
Keep your eyes open and your ears flapping, “traders MAY have to deal with the possibility of a government shutdown this weekend. Lawmakers are hustling to hammer out a deal on immigration seen as key to breaking the deadlock. Without a spending agreement by 12:01 a.m. ET Saturday, the government will partially shut down operations.”
A little insight or comparison; volume was low <most cases> in accord to the many up and down moves as BLCM was up (+$0.48 to close -$0.01) and crashed on 1.18 M shares traded <3 month average = 376.6 K shares>along with FCSC (-$0.0154) traded 1.45 M shares <3 month average = 531.1 K shares> while JUNO (+$23.65) traded 22.18 M shares <3 month average = 2.28 M shares>.
Remember, speculation rhymes … with an eventual … portfolio castration!
The advance/decline line scenario of 40 SCGT & RT covered companies:
· The open was negative with an A/DL of 17/21 and 2 flat ;
· The mid-day was barely positive with an A/DL of 20/19 and 1 flat;
· The close was a hair more positive with an A/DL of19/18 and 3 flat;
Pre-open indications:
- Bellicum Pharmaceuticals (BLCM) closed down -$0.01 – miss;
- bluebird bio (BLUE) closed up +$11.90 – hit;
- Capricor (CAPR) closed down -$0.00 – hit;
- Cellectis SA (CLLS) closed up +$2.41 – hit;
- Intrexon (XON) closed up +$0.41 – miss;
- Juno Therapeutics (JUNO) closed up +$23.65 – hit;
- Sangamo Therapeutics (SGMO) closed up +$0.20 – hit;
MY working trend lines:
… The greatest volume to the downside: RENE.L, NWBO, FCSC, IMUC and BLCM
… Upside volume was weighted to: JUNO, XON, BLUE, SGMO and MDXG
… Biggest $ downside: ISCO (-$0.11), RENE.L (-$0.10), HSGX (-$0.09), ATHX (-$0.07) and KOOL (-$0.06)
… Largest $ upside: JUNO (+$23.65), BLUE (+$11.90), CLLS (+$2.41), QURE (+1.08) and XON (+$0.41)
… Flat: CAPR, STML and AST
Which version of the truth fits the circumstances:
Of interest: MiMedx Group (MDXG), first patients have been randomized and enrolled in the Company's Phase 3 Investigational New Drug (IND) clinical trial for its micronized amniotic tissue, AmnioFix® Injectable, in the treatment of Achilles Tendonitis.
The P3 Achilles Tendonitis clinical trial is studying AmnioFix® Injectable in a prospective, double blinded, randomized controlled trial of the Micronized dHACM (dehydrated Human Amnion Chorion Membrane) Injection as compared to saline placebo injection.
The design of the P3 Achilles Tendonitis study will include approximately 158 patients. The primary efficacy endpoint of this study will be the change in Visual Analog Scale (VAS) score for patients between baseline and Day 90 between the AmnioFix Injectable group versus placebo-treated group. The primary safety endpoint will be the proportion of product-related adverse events, serious adverse events, and unanticipated adverse events during the first twelve months post injection in the AmnioFix Injectable group versus the placebo-treated group.
More than a rumor: Taking risks makes sense given Celgene’s competitive position. Its best-selling product, the multiple myeloma drug Revlimid, could face generic competition within a couple of years. Any erosion of the Revlimid business will sting.
CELG said in October that its existing hematology business, overwhelmingly Revlimid, will contribute roughly 75% of total 2020 sales. The company might not have the luxury of waiting that long to see how the CAR-T market develops.
Financially speaking, CELG can comfortably swallow Juno and its $2.5 billion of net borrowings. The risk is that CLGN may soon have to open its wallet again to solidify its future. <Charley Grant, WSJ>
Out and about: Biostage (BSTGD) This management team WIPED OUT 20 M of holder’s shares and investment!
Opened at $2.18 (previous closed $2.20) closed +$0.00 or +0.00% in a day’s range of $2.00 to $2.24 to close at $2.20 with low 25,890 shares traded. This follows the projected $1.32 post the 1-to-20 reverse split – a $4 M in-flow just followed a $30 M investment loss incurring a $47 M deficit!
NO scientists, a CEO, CFO and 2 accountants don’t make a company who couldn’t pay their rent or communicate their issues to past “fleeced” shareholders …
I am NOT “eating” my negative declaration, my OPINION is still “COVER UP of male and female harassment and corporate MISDEEDS “by members of management team!
What did happen to (reasons) and the story “around” the IND NOT being filed and the cmo and president leaving the company? NEVER forget the storyline of the 2 broken financings before the reverse split!
http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=11980760&type=HTML&symbol=BSTGD&companyName=Biostage&formType=3&dateFiled=2018-01-10&cik=0001563665 – VERY interesting, NO mention of BSTG’s executives!
Daily analytics:
The Dow on Wednesday staged a late rally to end above 26,000 for the first time ever, knocking out another round-number milestone at a history-setting pace for blue chips, with all the main equity indexes finishing at all-time highs. An upbeat gauge of conditions at the Federal Reserve’s business districts contributed to the buying sentiment.
· The Dow jumped 322.79 points, or 1.3%, to 26,115.65.
· The S&P 500 rose 26.14 points, or 0.9%, to 2,802.56.
· The NASDAQ rose 74.59 points, or 1%, to 7,298.28.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, Wednesday traded at 11.91, up +2.14% …
- Tuesday traded at 11.66, up +14.76% after Friday traded at 10.15, up +2.73%, Monday was MLK day, Thursday traded a t9.87, up +0.51% after last Wednesday traded at 9.82, down -2.58% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Wednesday was up +0.96%
· Tuesday was -1.25%
· Monday was a market holiday;
· Friday was up +0.40%
· Thursday was up +1.69%
· Last Wednesday was up +0.01%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Wednesday was up +0.73%
· Tuesday was -1.38%
· Monday was a holiday;
· Friday was up +0.67%
· Thursday was up +0.29%
· Last Wednesday was up +0.45%
·
The count - decliners versus gainers:
……. look at the differences in decliners:
· Wednesday’s decliners ranged from -0.12% <BLCM -$0.01> to -6.75% <ISCO -$0.11> in 18 equities;
· Tuesday’s decliners ranged from -0.61% <ISCO -$0.01> to -9.03% <RGNX -$2.75> in 31 equities;
· Monday was a holiday;
· Friday’s decliners ranged from -0.51% <ATHX -$0.01> to -7.28% <CYTX -$0.028> in 21 equities;
· Thursday’s decliners ranged from -0.17% <BLUE -$0.30> to -6.47% <ADVM -$0.009> in 15 equities;
· Last Wednesday’s decliners ranged from -0.17% <BLFS -$0.01> to -13.23% <KOOL -$0.50 > in 18 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Wednesday’s gainers ranged from +0.33% <VSTM +$0.01> to +53.86% <JUNO +$23.65> in 19 equities;
· Tuesday’s gainers ranged from +0.58% <MDXG +$0.08> to +10.13% <ADVM +$0.40> in 9 equities;
· Monday was a holiday;
· Friday’s gainers ranged from +0.67% <BLCM +$0.06> to +11.27% <XON +$1.49> in 19 equities;
· Thursday’s gainers ranged from +0.34% <BLCM +$0.03> to +12.67% <ISCO +$0.19> in 22 equities;
· Last Wednesday’s gainers ranged from +0.11% <BLCM +$0.01> to +10.12% <NWBO +$0.031> in 20 equities;
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.
