July 16, 2018 5:37pm

Infecting the sector …

Experts say the damage caused by Crispr has been 'seriously underestimated'

I have been saying – SELL for three (3) weeks as Intellia (NTLA) dives with fellow “mutators”. This is more than damaging, it’s an indictment!

 

Pre-open indications: 3 HIT and 1 MISS

Out and about: Shares of CRISPR gene-editing therapies plummeted after a study found that the technique can damage DNA. The research, published in the peer-reviewed journal Nature Biotechnology, is just the latest questioning whether the technique brings more benefit than harms to patients, with a report in June raising the possibility that edited cells could cause cancer.

 

I say today what others won’t, so you can do what others can’t!

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Henry’omics:

From the pre-open newsletter titled, “volume is setting the tone of the sector! It will be about exposure to market highs, geo-political and risk issues and possible sector rotation.”

I also stated, “I also find sentiment hazy!”

And … I wasn’t wrong …

 

Of the 45 companies covered on Monday; 32 downside equities finished in a range of -$0.01 (ATHX) to -$5.65 (CRSP) while the 10 upside equities oscillated from +$0.01 (ONVO) to $1.40 (AXGN) with 3 flat closes.

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 13/29 and 43flats;
  • The mid-day was negative with an A/DL of 6/35 and 4 flats;
  • The close was negative with an A/DL of 10/32 and 3 flats;

 

Pre-open indications: 3 hit and 1 miss

  • BioLife Solutions (BLFS) closed up +$1.17 – miss;
  • bluebird bio (BLUE) closed down -$3.30 – hit;
  • Caladrius Biosciences (CLBS) closed down -$0.58 – hit;
  • CRISPR Therapeutics (CRSP) closed down -$5.65 – hit;

 

Out and about:

Gene-editing stocks tumble on concerns about DNA damage (continued)

Dropping like stones in a lake: Editas Medicine (EDIT -$2.70 or -7.21%) with 1.52 M shares traded <3 month average = 1.52 M, CRISPR Therapeutics AG (CRSP -$5.65 or -8.60%) with 2.83 M shares traded <3 month average = 1.55 M shares> and Intellia Therapeutics (NTLA -$3.24 or -9.94%) with 1.33 m shares traded <3 month average = 928.4 K shares>

  • Despite the sharp stock downturns, all three companies' shares were still up year-to-date = EDIT (+18%), CRSP +162%) and NTLA (+58%).

Wellcome Sanger Institute scientists tested the effects of Crispr on both mouse and human cells in the laboratory; an array of trials on the gene-editing tool has shown little unforeseen mutations in the DNA at the target site.

  • But the first assessment of Crispr's unexpected effects revealed it caused extensive mutations - but further away from the target site.

Professor Allan Bradley, study co-author, said: 'We found that changes in the DNA have been seriously underestimated before now. This is the first systematic assessment of unexpected events resulting from Crispr/Cas9 editing in therapeutically relevant cells. Michael Kosicki, first author, revealed it became abundantly clear 'something unexpected' was happening during the study.

  • The authors suggest that these alterations in DNA, which tend to be at or close to the target site, occur at much higher levels than anticipated. Dr. Francesca Forzano, consultant in clinical genetics and genomics at Guy's & St Thomas' NHS Foundation Trust, said: 'This important work demonstrates that this technique is much less safe than previously thought.

This work represents a milestone in the gene editing field and signpost that more caution should be exerted in the application of this technique. < Two paragraphs by Stephen Matthews of MAILONLINE>

 

A day of BIG hits to share pricing - BSTG (-$0.91) – it’s about time!

 

MY working trend (5 largest) lines:

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

… Upside volume was weighted to:  KOOL, VCEL, ADVM, ONVO and AXGN

… Biggest $ downside:  CRSP (-$5.65), ALNY (-$4.71), QURE (-$4.37), BLUE (-$3.30) and NTLA (-$3.24)

… Best moves to the $ upside: AXGN (+$1.40), BLFS (+$1.17), CLLS (+$1.14), SAGE (+$0.32) and MESO (+$0.21)

… Flats:  CUR, RENE.L and OSIR

 

The weekly count - decliners versus gainers – looks at the view from different angles:

……. look at the differences in decliners:

  • Monday’s decliners ranged from -0.25% <RARE -$0.21> to -12.85% <BSTG -$0.51> in 32 equities;
  • Friday’s decliners ranged from -0.39% <BOLD -$0.15 > to -10.34% <VCEL -$1.05 > in 17 equities;
  • Thursday’s decliners ranged from -2.17% <ONVO -$0.03 > to -7.94% <RGNX -$6.45 > in 19 equities;
  • Wednesday’s decliners ranged from -0.08% <QURE -$0.03 > to -7.56% <FIXX -$1.70 > in 18 equities;
  • Tuesday’s decliners ranged from -0.11% <VYGR -$0.02 > to -17.44% <BSTG -$0.75 > in 29 equities;
  • Last Monday’s decliners ranged from -0.30% <MDXG -$0.01 > to -6.35% >VTGR -$1.25> in 18 equities;

Versus

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

  • Monday’s gainers ranged from +0.19% <SAGE +$0.32 > to +5.99% <KOOL +$0.027 > in 10 equities;
  • Friday’s gainers ranged from +0.07% < CLLS +$0.02> to +13.19% <CLBS +$0.72 > in 25 equities;
  • Thursday’s gainers ranged from +0.25% < BSTG +$0.01> to +3.20% <BMRN +$3.30> in 24 equities;
  • Wednesday’s gainers ranged from +0.08% <EDIT +$0.03> to +22.22% < RENE.L +$18.00> in 24 equities;
  • Tuesday’s gainers ranged from +0.16% <KOOL -$0.007 > to +7.88% < VSTM +0.57> in 15 equities;
  • Last Monday’s gainers ranged from +0.23% <MESO +$0.01 > to +1.79% <BLUE +$3.05 > in 22 equities;

 

Daily analytics and metrics:

  • The Dow rose just 44.95 points to 25,064.36.
  • The S&P 500 slipped 0.1%to 2,798.43.
  • The NASDAQ closed 0.3% lower at 7,805.72.

 

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

  • Monday traded at 12.83, up +5.34%
  • Friday traded at 12.18, down -3.18%
  • Thursday traded at 12.59, down -7.63 %
  • Wednesday traded at 13.63, up +7.83%
  • Tuesday traded at 12.64, down -0.39%
  • Last Monday traded at 12.69, down -5.09%

 

The iShares Russell 2000 (IWM) closed:

  • Monday was down -0.40%;
  • Friday was down -0.26%;
  • Thursday was up +0.47%;
  • Wednesday was down -0.82%;
  • Tuesday was down -0.48%;
  • Last Monday was up +0.64%;

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Monday was down -0.73%
  • Friday was up +0.17%
  • Thursday was up +1.17%
  • Wednesday was down -0.29%
  • Tuesday was down -0.17%
  • Last Monday was up +0.52%

 

JULY sessions:

Monday (7/16) closed NEGATIVE with 32 decliners, 10 advancers and 3 flat;

Friday closed POSITIVE with 17 decliners, 25 advancers and 3 flat;

Thursday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;

Wednesday closed POSITIVE with 18 decliners, 24 advancers and 3 flat;

Tuesday closed NEGATIVE with 29 decliners, 15 advancers and 1 flat;

Monday (7/9) closed POSITIVE with 18 decliners, 22 advancers and 5 flat;

Friday closed POSITIVE with 8 decliners, 35 advancers and 2 flat;

Thursday closed POSITIVE with 18 decliners, 23 advancers and 4 flat;

Wednesday (7/4) was a holiday;

Tuesday closed POSITIVE with 9 decliners, 33 advancers and 3 flat;

Monday (7/2) closed POSITIVE with 15 decliners, 27 advancers and 3 flat;

 

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.