March 14, 2018 8:15am

Development, operating costs, public listings and capital market access are finding that value creation is struggling unless collaborations are “arranged” and then it’s all about delivering the “goods”

 

Companies in my headlights: 2 SELLs and 5 BUYs

Q4 and FY17 results: CAPR and QURE

 

If you had been subscribing, today’s events would not have been a surprise … SUBSCRIBE TO RegMed Investors at http://www.regmedinvestors.com/create-account

Positive open expected

 

 

Every day, I “make my bones”; it’s time for you to step-up for continued access to what one industry CEO calls the “bible” for smart investing in the RegMed, gene and cell therapy. 

 

Dow futures are UP +0.40% (+100 points) and NASDAQ futures are UP +0.41% (+29 points)

 

U.S. stock index futures posted gains ahead of Wednesday's open, as investors tried to shake off domestic political concerns.

European equities lower amid trade concerns

Asian stocks decline after Tillerson ouster and amid trade concerns

 

Issues to be faced at the open: blow-back from trade tensions and upheaval in the White House.

Data docket: At 7 a.m. ET, mortgage applications are due, followed by retail sales and producer price index (PPI) data at 8:30 a.m. ET. Business inventories will come out at 10 a.m. ET.

 

 

Been where, done what …

RegMed, stem, gene and cell therapy sector’s record over 5 sessions (of 40 covered companies):

  • Tuesday closed POSITIVE with 16 decliners, 19 advancers and 5 flats;
  • Monday closed NEGATIVE with 22 decliners, 16 advancers and 2 flat;
  • Friday closed POSITIVE with 17 decliners, 21 advancers and 2 flats;
  • Thursday closed NEGATIVE with 22 decliners, 17 advancers and 1 flat;
  • Last Wednesday closed POSITIVE with 9 decliners, 29 advancers and 2 flats;

 

 

Henry’omics:

From last night’s newsletter, “get used to the game of musical pricing chairs as the open was positive, the mid-day negative and the close ended positive while the IBB dived -0.71%. There is no doubt that cash and ATM positions will compel companies to augment their spending positions, becoming laser focused on runways. A time of opportunity as Athersys (ATHX) drives a global outlook leaving spending and ATM dependence issues in the dust.”

CAUTION is my word for the day!

There is always the uncertainty surrounding the quarterly and FY results as loss-per-share (LPS) numbers are increasing. 

 

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.04% upside in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.02% upside 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 +0.64% upside in Wednesday’s pre-open

 

 

Companies in my headlights:

Athersys (ATHX) closed up +$0.28 with 2.4 M shares traded <3 month average = 621 K shares> after Monday’s flat close at $1.56 with 298 K shares traded.  ATHX and HEALIOS K.K. expanded their existing development and commercialization collaboration.  As part of this expansion, Healios made an approximate $21 million equity investment at $1.76 per share, will deposit $10 million into escrow, and has entered into a letter of intent (“LOI”) with ATHX to expand Healios’ license to develop MultiStem® products for indications to include acute respiratory distress syndrome (“ARDS”), trauma in Japan and the use of MultiStem products in conjunction with organ bud technology and certain ophthalmological indications globally.  The aftermarket indication is a positive +$0.10 or +5.43% - Maintaining BUY;

AxoGen (AXGN) closed up +$0.70 at $35.15 with 165.4 K shares traded <3 month average = 306.1 shares>. February ended at $29.20 while January opened at $27.95 but, March opened at $33.95 with a high of $35.35 and a low of $32.60. Chart could beckon traders to take a profit – SELL;

Bellicum Pharmaceuticals (BLCM) closed up +$0.05 to $8.08 after Monday’s -$0.12 to $8.03 and has a pre-market indication of +$0.86 or +11.96% on Monday’s news of interim clinical data of BPX-501 in pediatric patients with acute myeloid leukemia (AML) and primary immunodeficiencies (PIDs) pushed the upside after the U.S> hold. The aftermarket indication is a positive +$0.12 or +1.49% – Maintaining BUY;

Capricor Therapeutics (CAPR) closed down -$0.09 to $1.79 with 206.7 K shares traded <3 month average = 526.5 K shares>. On 3/9, CAPR featured a KOL to discuss the emerging paradigms to treat Duchenne muscular dystrophy (DMD); 3/10 saw a brief upside of +$0.02 until yesterday’s downdraft. March opened at $1.73, February at $1.83 and January at $1.57 – NO real track record of appreciation as CAPR desperately NEEDS a financing as LOSSES mount (CAPR reported a Q3/17 loss of $2.7 million or -$0.12 per share). ATM usage could also be “maxing” – Maintaining SELL;

Cesca Therapeutics (KOOL) closed down -$0.019 to $3.05 with and a positive aftermarket indication of +$0.23 or +7.49% after news of a license agreement with IncoCell Tianjin Ltd., a wholly-owned subsidiary of China-based Boyalife Group, for CAR-T related and other cellular processing CDMO services. Pursuant to the terms of the agreement, ThermoGenesis has granted IncoCell an exclusive license to purchase and use, at a discounted purchase price, X-Series™ cellular processing research devices, consumables and kits for use in the conduct of CDMO operations in certain Asia Pacific countries. In exchange, ThermoGenesis is entitled to a percentage of IncoCell’s gross contract development revenues, including any potential upfront payments, future milestones or royalty payments – BUY;

Fate Therapeutics (FATE) closed down -$0.99 to $12.07. Oversold after Monday’s $13.06, last Friday’s $13.17 and the previous Thursday’s $12.83 and Wednesday’s $13.45.  The aftermarket indication is a positive +$0.12 or +1.08% - BUY;

Verastem (VSTM) closed down -$0.19 to $3.36 after Monday’s $3.55, last Friday’s $3.45, the previous Thursday $3.53 and Wednesday’s $3.40. The aftermarket indication is a positive +$0.02 or +0.60%. In early February 2018, Verastem submitted an NDA to the FDA seeking full approval for its lead product candidate duvelisib, a first-in-class oral dual inhibitor of phosphoinositide-3-kinase (PI3K)-delta and PI3K-gamma, for the treatment of relapsed or refractory CLL/SLL and accelerated approval for the treatment of relapsed or refractory FL.  Another reason, cash position elongates its “runway” as of 1/18, VSTM amended its loan and security agreement with Hercules Capital, increasing its existing borrowing limit under the loan facility from up to $25 million to up to $50 million in financing, subject to certain conditions of funding. In 12/17, VSTM completed an underwritten public offering of shares of common stock with gross proceeds totaling approximately $25 million. Oversold - 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.