April 9, 2018 7:04am
Novartis (NVS) to acquire gene therapy company, AveXis (AVXS) for $218 per share, a 7% premium to AVXS’ 30-day volume-weighted average stock price in cash deal totaling $8.7 billion expected to be completed in mid-2018. The pre-market is a BUY with a +$99.09 or +85.49% upside.
The FDA has accepted for filing with Priority Review Verastem’s (VSTM) New Drug Application (NDA) for its lead product candidate duvelisib. VSTM is seeking full approval of duvelisib for the treatment of relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) and accelerated approval for the treatment of relapsed or refractory follicular lymphoma (FL). The FDA target action date is 10/5/18. The pre-market is a BUY with a +$0.99 or +33.45% upside.
A good day for the sector and especially gene therapy companies as the oversold are due for a rebound
The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +1.71% upside in Monday’s pre-market; having been down -5.3% last week
Market timed pre-open indication: 4 BUYs
Where the understanding of the indications shed light on share pricing!
Higher open expected
Dow futures are UP +0.79% (+188 points) and NASDAQ futures are UP +0.90% (+59 points)
US futures point to a triple-digit jump at the open, following Friday’s roller-coaster session
European equities traded higher
Asian stocks traded higher as concerns over a trade war between China and the U.S. dissipated slightly
Today’s interest: Novartis (NVS) to acquire gene therapy company AveXis (AVXS) for $218 per share in an $8.7 billion deal … https://www.regmedinvestors.com/articles/10224
Data docket: NONE
Political front: a potential trade war continues to rattle investors, though a positive trading day from markets in Europe and Asia helped lift sentiment in the U.S. on Monday
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +1.71% upside in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is a POSITIVE +1.88% upside indicating in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Monday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.79% upside in Monday’s pre-open
Henry’omics:
Today – A good day for gene therapy companies (ADVM, AGTC, BLUE, ONCE, RGNX, SLDB, VYGR, SGMO and even GBT) in the sector with the announcement of NVS’ intention to buy AVXS
From Friday night’s newsletter: “… the newest of new lows as the sector was dead before it was buried under an avalanche of selling. As I had stated, “High turnover and downside momentum create exaggerated moves.”
Review the last 5 session’s close (of 40 covered companies):
- Friday closed NEGATIVE with 32 decliners, 7 advancers and 1 flat;
- Thursday closed NEGATIVE with 25 decliners, 11 advancers and 4 flats;
- Wednesday closed POSITIVE with 11 decliners, 28 advancers and 1 flat;
- Tuesday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
- Last Monday closed NEGATIVE with 31 decliners, 9 advancers and 0 flats;
Volatility (the VIX) is still a big driver and it was up +13.46% after Thursday’s -5.58%, Wednesday’s -6.99%, Tuesday’s -10.67% and last Monday’s +18.28%.
A re-cap:
- Friday’s decliners ranged from -0.50% <IMUC -$0.0012 > to -9.68% <AST -$0.15 > in 32 equities;
- Friday’s gainers ranged from +0.61% <OSIR +$0.05 > to +4.06% <BLFS +$0.08 > in 7 equities;
Consider the iShares NASDAQ Biotechnology (IBB) over the last six (6) sessions it’s down -5.3%:
- Friday was down -3.01%
- Thursday was down -1.62%
- Wednesday +2.91%
- Tuesday +0.37%
- Last Monday -3.95%
My evaluation: A GOOD day for the OVERSOLD!
Company in my headlights - speculation:
Cellectis (CLLS) closed down -$0.17 to $28.83 with 777.5 K shares traded after the ADS offering priced at $31.00 was completed that followed Thursday’s rise of $4.10 to $29.00 with 5.1 M shares traded after Wednesday’s -$5.43 to $33.10 with 1.48 M shares traded <3 month average = 311.8 K shares>. – Maintaining BUY;
Sangamo Therapeutics (SGMO) closed down -$0.55 to $16.95 with 2.53 M shares traded after Thursday’s -$1.40 to $17.50 with 2.63 M shares traded after Wednesday’s +$1.10 to $18.90 with 2.16 M shares traded <3 month average = 2.19 M shares>. OVERSOLD - Maintaining BUY;
Stemline Therapeutics (STML) closed down -$0.10 to $15.10 with 212.6 K shares traded after Thursday’s -$0.35 to $15.30 after Wednesday’s +$0.85 to $15.55 with 281.5 K shares traded <3 month average = 355 K shares>. STML has initiated its rolling submission of a Biologics License Application (BLA) for SL-401 to the U.S. FDA. SL-401 is a targeted therapy that has been granted Breakthrough Therapy designation (BTD) by the FDA – Maintaining BUY;
Verastem (VSTM) closed down -$0.08 to $2.96 with 546.1 K shares traded <3 month average = 606.3 K shares>. FDA has accepted for filing with Priority Review its New Drug Application (NDA) for VSTM’s lead product candidate duvelisib. Duvelisib is a first-in-class oral dual inhibitor of phosphoinositide 3-kinase (PI3K)-delta and PI3K-gamma, for which Verastem is seeking full approval for the treatment of relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) and accelerated approval for the treatment of relapsed or refractory follicular lymphoma (FL). The FDA target action date is 10/5/18. The pre-market indication is a POSITIVE +$0.99 or +33.45% - 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.
