July 17, 2018 8:05am

It ain’t over …

Gene editing company’s management have yet to respond to the surrounding potential cancer controversy?

 

Pre-open indications: 5 SELLs and 3 BUYs

Out and about: The “circle of trust” of genetic research is broken; researchers will now need to perform more thorough examination to make sure that potential mutations are not in cells they’re working with … it’s more than a minor “snip”

 

RMi reports the pricing component of pre-open indications that shed light on share pricing events and its follow-on value!

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U.S. stock index futures are mixed

Dow futures are UP +0.01% (+2 points) and NASDAQ futures are DOWN -0.12% (-9 point)

 

U.S. stock index futures pull back ahead of Tuesday’s open, as investors monitor FED, political developments and in our case - gene editing management responses to “study” controversy.

European stocks hovered around the flat line as investors awaited remarks by U.S. Federal Reserve Chairman Jerome Powell.

Asian stocks closed lower on Tuesday, with Japan the only market carving out gains; while China extended declines after Monday's release of soft economic data.

 

Data docket: the business leaders’ survey is due out at 8:30 a.m. ET, followed by industrial production at 9:15 a.m. ET and the NAHB/Wells Fargo Housing Market Index at 10 a.m. ET. Treasury International Capital (TIC) data is scheduled for 4 p.m. ET.

Federal Reserve Chair Jerome Powell is expected to deliver his semiannual monetary policy report to the Senate Banking Committee on Tuesday.

 

Henry’omics:

 

There is an ebb and flow of positive closes and we are solidly in the upside corner - to our detrement?

July has exhibited 8 positive closes, 2 negative closed having experienced a mid-week holiday.

Strength has been a by-word of the sector until yesterday and sputter is the newest

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is indicating an +0.02% upside in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating an upside of +0.07% in Tuesday’s pre-open

 

From Monday’s night’s newsletter: “gene-editing therapies get hammered 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”.

I also stated, “This is more than damaging, it’s an indictment!”

The iShares NASDAQ Biotechnology (IBB) was DOWN -0.73% after Friday’s +0.17%,  Thursday’s +1.17%, Wednesday’s -0.29% and last Tuesday’s -0.17% … for a weekly upside of +1.4% - I’m back to “smelling” some downside …

I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence!

  • 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;
  • Monday’s decliners ranged from -0.25% <RARE -$0.21> to -12.85% <BSTG -$0.51> in 32 equities;
  • Monday’s gainers ranged from +0.19% <SAGE +$0.32 > to +5.99% <KOOL +$0.027 > in 10 equities;

 

Companies in my headlights – It’s your decision; I provide the idea and context:

Asterias Biotherapeutics (NYSEMKT: AST) closed down -$0.15 to $1.65 and has an upside pre-open indication of +$0.20 or +15.15% after providing additional data from the Company’s ongoing Phase 1/2a SCiStar study designed to evaluate the safety and potential efficacy of AST-OPC1 in the treatment of severe cervical spinal cord injury.   “The results from the SCiStar study remain encouraging as the six-month follow-up data continued to demonstrate a positive safety profile and show that the AST-OPC1 cells are successfully engrafting in patients,” stated Ed Wirth, CMO.  “We are pleased that 19 of the 22 subjects dosed in Cohorts 2 through 5 have recovered at least one motor level on at least one side through six months of follow-up and four of these subjects have recovered two motor levels during this same period.  We expect to release the top-line 12-month data for the study in the first quarter of 2019 and are actively evaluating the design of a randomized controlled study for OPC1.” “The results are in-line with the data we reported earlier in the year for cohorts 3 and 4 and the overall body of evidence to date supports the primary safety objective for the study,” commented Michael Mulroy, CEO.  “There remain no serious or unexpected adverse events related to OPC1 and we believe the durable engraftment of the OPC1 cells, as evidenced in the earlier results as well, is an important prerequisite to seeing sustained clinical benefits – BUY;

BioLife Solutions (BLFS) closed up again +$0.79 to $19.79 after Thursday’s +$1.80 to $19.00. BLFS has spurted in July from $14.99, a $4.80 premium or +24.25% upside in 10 sessions. “Icarus” flew too high and the wax on the wings (of the share price” - Maintaining SELL;

bluebird bio (BLUE) closed up again +$0.30 to $180.60 with 491.5 K shares traded <3 month average = 818.8 K shares> after Thursday’s +$1.95 to $180.30, Wednesday’s $178.35, Tuesday’s $177.50, last Monday’s $173.00. July started off at $154.05, there is a $26.55 or +14.7% premium – as BLUE hits another new high; I tend to suspect the target is on its back – Maintaining SELL;

CRISPR Therapeutics (CRSP) closed down -$5.65 or -8.60% to $60.06 with 2.81 M shares traded <3 month average = 1.55 M shares) after disastrous news regarding gene editing mutations. The cancer “snip” has infected the share price with a negative aftermarket of -$0.16 or -0.27% so far–- Maintaining SELL;

Intellia Therapeutics (NTLA) closed down -$3.24 or -9.94% to $29.36 with 1.33 M shares traded <3 month average = 928.4 K shares>. Be ready for another “whammy” to the share price - SELL

Editas Medicine (EDIT) closed down -$2.70 or -7.12% to $35.20 with 1.525 M shares traded <3 month average = 992.3 K shares>. The aftermarket indication is negative -$0.20 or -0.57% so far – Maintaining SELL;

Mesoblast (MESO) closed up +$0.21 to $5.99. MESO has entered into a strategic alliance with one of China’s largest pharmaceutical companies, Tasly Pharmaceutical Group (SHA: 600535; Tasly), for the development, manufacture and commercialization in China of MESO’s allogeneic mesenchymal precursor cell (MPC) product candidates MPC-150-IM for the treatment or prevention of chronic heart failure and MPC-25-IC for the treatment or prevention of acute myocardial infarction – BUY;

Voyager Therapeutics (VYGR) closed down -$0.26 to $18.03. VYGR received feedback from a Type C meeting with the U.S. FDA.  Based on the written response from the FDA, VYGR continues to plan to submit for review a biologics license application (BLA) for VY-AADC based on the nonclinical and clinical safety and efficacy data from the pivotal program, including plans to submit a BLA based on data from the randomized, placebo-controlled Phase 2 trial alone, or if needed, from the randomized, placebo-controlled P3 trial. In addition, interim results from a P1 posterior trajectory trial achieved enhanced coverage of the putamen, reduced surgical times, and improvements in patients’ motor function at six months that were consistent with improvements achieved from patients in Cohorts 2 and 3 at the same time point in Voyager’s Phase 1b trial with VY-AADC – 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.