June 11, 2018 5:19pm

As studies published in Nature Medicine, scientists found that cells in which genomes were edited by CRISPR-Cas9 had the potential to seed tumors inside a patient.  CRSP (-$8.58 or -12.59%), EDIT (-$3.06 or -7.80%) and NTLA (-$2.67 or -9.81%) nose-dived in response

As I had stated, “CRISPR stocks have been hot in the last 4 sessions even with dips, which isn't surprising given all the hype and promise surrounding gene editing. Yet the extreme of upsides make me nervous, the upside puts a target on their back!”

 

Out and about: Ionis Pharmaceuticals (IONS) closed up +$1.52 or +3.2% after Biogen (BIIB) completed a pact to collaborate with IONS and bought 11.5 million Ionis shares for $625 million, paying $54.34 each. BIIB also invested $375 million as an upfront payment to Ionis to "jointly discover and develop novel antisense drugs for a broad range of neurological diseases.”  Regenxbio (RGNX) closed down -$1.65 or -2.81% to $57.10 and will be UP after receiving an accelerated license payment of $100 million under its license agreement with AveXis for the development and commercialization of products to treat spinal muscular atrophy (SMA), due to the acquisition of AveXis by Novartis AG (NVS).

 

Pre-open indications: 2 HITs

 

Of the 45 covered, the 26 downside equities expired in a bottom-weighted range of -$0.02 to -$3.28 with 1 bottom of -$8.58, while the 18 upside equities oscillated from +$0.03 to $1.19 with 1 flat close

We keep you informed, if you want to be knowledgeable of the “bones” of the sector - be a subscriber to understand what you need to do in Tuesday’s market. Let the “numbers” speak since sentiment is capricious!

Henry’omics:

From the pre-open newsletter … “tick, tick; when is the tock - every which way.”

I also stated, “There will be plenty of rhetoric to knock the stock market and “our” universe around!”

Reiterating, “In this sector, investors need to wear a trader’s button to make-up for portfolio near and long-term short falls!”

 

Fear of the "unknown" is behind today's negative sentiment or sell-off with the sector!

Investors remained nonchalant about rising prospects of a trade war following a weekend summit meeting of Group of 7 leaders that ended on an astoundingly bitter note.

Traders have bigger concerns, some of which might come into play as a week jam-packed with potential market moving events gets under way while investors are just waiting and panting hoping for anything expecting nothing.

What’s the effect upon “our” universe?

 

Some companies should be concerned about the markets in regard to their capacity to raise $$ by offerings!

 

Out and about: as I had stated …

Forget the hype of CRISPR technologies ...

Even though cash positions are very good – it will be a question of the application and usage of their technology … there is a LONG road ahead – lighten the load and buy dips to sell on the newest highs!

Shares of Editas Medicine (NASDAQ: EDIT) had risen over 22%, Intellia Therapeutics (NASDAQ: NTLA) gained 33.4%, and CRISPR Therapeutics (NASDAQ: CRSP) having jumped an impressive 47.1%, according to data provided by S&P Global Market Intelligence as defined in the morning thesis.

Regenxbio (RGNX) …

The accelerated license payment consisted of $60 million in annual fees and a commercial milestone fee of $40 million.  Under the License Agreement, in addition to the accelerated license payment, RGNX remains eligible to receive a potential commercial milestone fee of $80 million and certain royalties on net sales for any product developed for the treatment of SMA using RGNX's NAV technology.

NVS now holds exclusive rights to the NAV Technology Platform for the development of treatments for SMA, including AVXS-101, which uses RGNX's NAV AAV9 vector. In April 2018, AveXis reported that the six SMA patients who were at least one-month post gene transfer in the pivotal trial for AVXS-101 were exhibiting motor function improvements. SMA is the leading genetic cause of infant mortality.

 

Pre-open indications: 2 HITs

  • BioTime (NYSEMKT: BTX) closed up +$0.05 – hit;
  • Neuralstem (CUR) closed up +$0.01 – hit;

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 20/23 and 2 flats;
  • 10:30 a.m. flipped positive with an A/DL of22/19 and 4 flats
  • The mid-day dropped negative with an A/DL of 17/25 and 3 flat3;
  • The close was negative with an A/DL of 18/26 and 1 flat;

 

MY working five (5) trend lines:

… The greatest volume to the downside:  CRSP, EDIT, SGMO, MDXG and ATHX

… Upside volume was weighted to:  KOOL, ONVO, BLCM, IONS and XON

… Biggest $ downside:  CRSP (-$8.58), QURE (-$3.28), EDIT (-$3.06), NTLA (-$2.67) and ONCE (-$2.39)

… Best moves to the $ upside: IONS (+$1.19), BLCM (+$1.09), BLFS (+$0.51), RARE (+$0.46) and VCEL (+$0.40)

… Flats:  RENE.L

 

June sessions:

Monday closed NEGATIVE with 26 decliners, 18 advancers and 1 flat;

Friday closed NEUTRAL with 22 decliners, 22 advancers and 1 flat;

Thursday closed NEGATIVE with 34 decliners, 9 advancers and 2 flat;

Wednesday closed POSITIVE with 17 decliners, 24 advancers and 4 flat;

Tuesday closed POSITIVE with 14 decliners, 30 advancers and 1 flat;

Monday closed POSITIVE with 18 decliners, 25 advancers and 2 flat;

Friday (June 1) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;

 

Daily analytics:

U.S. stocks closed slightly higher Monday as investors shrugged off concerns over a tumultuous G-7 meeting over the weekend at which President Donald Trump lashed out at U.S. allies.

  • The Dow finished 5.78 points higher or +0.02% at 25,322.31.
  • The S&P 500 rose +2.97 points or +0.11%to close at 2,782.
  • The NASDAQ finished up +14.41 points or +0.19% at 7,659.93.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,

  • Monday traded at 12.35, up +1.40%
  • Friday traded at 12.18, up 0.33 %
  • Thursday traded at 12.13, up +4.21%
  • Wednesday traded at 11.64, down -6.13%
  • Tuesday traded at 12.45, down -2.28%
  • Last Monday traded at 12.74, down -5.35%

 

The iShares Russell 2000 (IWM) closed:

  • Monday was up +0.17%;
  • Friday was up +0.30%;
  • Thursday was down -0.55%;
  • Wednesday was up +0.71%;
  • Tuesday was up +0.61%;
  • Last Monday was up +0.53%;

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Monday was down -0.12%
  • Friday was up +0.32 %
  • Thursday was down -0.69%
  • Wednesday was up +1.25%
  • Tuesday was up +0.03%
  • Last Monday was down -0.65%

 

The count in June - decliners versus gainers:

……. look at the differences in decliners:

  • Monday’s decliners ranged from -0.19% <ALNY -$0.19> to -12.59% <CRSP -$8.58 > in 26 equities;
  • Friday’s decliners ranged from -0.19% <CLLS -$0.03 > to -6.35% <BSTG -$0.19> in 22 equities;
  • Thursday’s decliners ranged from -0.08% < BOLD -$0.03> to -23.39% < MDXG -$1.92> in 34 equities;
  • Wednesday’s decliners ranged from -0.02% <SAGE -$0.03> to -4.75% <MESO -$0.28 > in 17 equities;
  • Tuesday’s decliners ranged from -0.13% <BOLD -$0.05> to -4.90% <ADRO -$0.35> in 14 equities;
  • Last Monday’s decliners ranged from -0.13% <OSIR -$0.01 > to -6.80% <RGNX -$3.65 > in 18 equities;

Versus

… Look at the percentage’s (%) and spreads …

  • Monday’s gainers ranged from +0.41% <AXGN +$0.20> to +12.93% < BLCM +$1.09> in 18 equities;
  • Friday’s gainers ranged from +0.16% <QURE +$0.06 > to +10.28% <HSGX +$0.26> in 22 equities;
  • Thursday’s gainers ranged from +0.38% <FIXX +$0.08 > to +9.96% < MESO +$0.56> in 9 equities;
  • Wednesday’s gainers ranged from +0.08% < SLDB +$0.02> to +12.32% <VSTM +0.68 > in 24 equities;
  • Tuesday’s gainers ranged from +0.02% < ALNY +$0.02> to +8.99% <RGNX +$4.50 > in 30 equities;
  • Last Monday’s gainers ranged from +0.59% <CUR +$0.01 > to +8.90% <BLUE +$8.90 > in 25 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.