December 21, 2018 6:59pm
Deleveraging, de-risking and the quadruple witching helped sweep the session clean as 45 covered companies, only 3 closed positive SLDB (+$0.13), OSIR (+$0.08) and BCLI (+$0.57)
Pre-open indications: 3 HITs and 2 MISS
Out and about: ATHX (-$0.14 or -8.86%) – an option is still only a possibility; BSTG (-$0.20 or -8.51%)- do they really think they can raise needed (desperate straights) money with their track record of share price erosion and CLBS (-$0.30 or -7.14) – living high on investor dollars … got kicked to the curb while Histogenics (HSGX -$0.00 or -0.72% and a negative -$0.39 or -83.43% aftermarket response) expects to suspend the development of NeoCart and not submit a BLA. HSGX is considering all possible alternatives, including seeking chapter 11 bankruptcy protection. Bottom line, in these 4 cases, it’s all about dysfunctional management!
Investors should be reading about today’s final “figures” – be a subscriber and be ready for Monday’s session! I still believe today’s tin could be next month’s gold!
The last seven (7) session’s trend is an admission that the sector is without any pricing sustainability which suppresses any value directional …
- The Dow closed down -414.23 points or -1.81% to 22,445.37
- The S&P closed down -50.84 points or -2.06% to 2,416.58
- The NASDAQ was down -195.41 points or -2.99% to 6,333.00
Sector equities collapsed for a seventh (7th) session with the NASDAQ and the S&P 500 down nearly -18% from its record earlier this year.
The CRISPERs have become trading stocks, not investing equities – CRSP (-$4.69 or -17.10%), EDIT (-$4.77 or -20.78%) and NTLA (-$2.33 or -16.98%) get hammed again leading the percentage “%” pack to the downside, although NTLA was up +$0.27 yesterday.
From the pre-open newsletter: “I am NOT feeling it - today! Yet, I’m dreaming of an upside Christmas, where the equities glisten with investors listening to hear the buying clicks in a blizzard of downside. I might be dream but its coming, it’s coming – and then will Godot get up off the park bench? I’ll use the coal in my stocking to keep me warm while I watch and wait for the harvesting of oversold equities.”
The advance/decline line scenario of 45 covered companies:
- The open was negative with an A/DL of 6/37 and 2 flat;
- The mid-day was negative with an A/DL of 8/37 and 0 flat;
- The close was negative with an A/DL of 3/42 and 0 flat;
Pre-open indications: 3 HIT and 2 MISS
Applied Genetic Technologies Corporation (AGTC) closed down again -$0.35 – miss;
- AGTC still has $105 M in cash and there is $6.81 in total cash per share. BIIB has already paid out around $146 million during the collaboration and will contribute funding through to March 8 of next year, when the contract comes to an end
CRISPER Therapeutics (CRSP) closed down again -$4.69 – hit, I’d said trade it;
Editas medicine (EDIT) closed down again -$4.77 – hit, I’d said trade it;
Intellia (NTLA) closed down -$2.33 – hit, I’d said trade it;
Regenxbio (RGNX) closed down -$1.32 – miss;
Out and about:
Histogenics Corporation (HSGX) provided an update on the NeoCart regulatory pathway based on discussions with the U.S. FDA.
Based on the feedback received from the FDA, while the NeoCart P3 clinical trial resulted in certain compelling data, the FDA indicated that an additional clinical trial would need to be completed before it would accept a submission of a Biologics License Application (BLA) for NeoCart.
The FDA indicated receptivity to novel clinical trial methodologies and regenerative medicine advanced therapy designations in order to support additional data for a future potential submission.
However, considering the time and funding required to conduct such a trial, HSGX expects to suspend the development of NeoCart and does not plan to submit a BLA at this time.
In connection with this outcome, HSGX intends to implement a restructuring plan to reduce costs and has engaged Canaccord Genuity LLC to evaluate the full range of potential strategic alternatives to maximize value for stakeholders, which includes, but is not limited to, acquisitions, business combinations, joint ventures, public and private capital raises, recapitalization, and sale transaction options, including a sale of assets or intellectual property.
Since these efforts may not be successful and in light of its limited cash reserves HSGX is considering all possible alternatives, including restructuring activities, a wind-down of operations, or seek chapter 11 bankruptcy protection to complete or execute a restructuring transaction or liquidation.
Daily sector metrics: weakness
… Greatest volume to the downside: HSGX, VSTM, ADRO, MDXG and XON
… Upside volume was weighted to: SLDB, OSIR and BCLI
… Weakness ($) to the downside: BMRN (-$4.91), EDIT (-$4.77), CRSP (-$4.69), RARE (-$3.39) and BLUE (-$3.12)
… Barely any moves ($) to the upside: BCLI (+$0.57), SLDB (+$0.130 and OSIR (+$0.08)
… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:
- Friday was down -3.91% after NOT indicating in the pre-market;
- Thursday was down -1.71% after indicating a POSITIVE +0.28% in the pre-market;
- Wednesday was down -2.14% after indicating a NEGATIVE -0.1% in the pre-market;
- Tuesday was down –1.94% after indicating a POSITIVE +0.7% in the pre-market;
- Monday was down –1.65% after indicating a POSITIVE +0.12% in the pre-market;
- Last Friday was down -1.89% after indicating a NEGATIVE -1.05% in the pre-market;
Tonight’s percentage (%) indicators: weakness …
- Review the range of the 3 upside from +0.57% (SLDB) to +19.13% (BCLI) while the 42 downside ranged from -0.72% (HSGX) to -20.78% (EDIT) with 0 flat close
Volume stat: Increasing …
- 3 out of the 3 upside had higher (than the 3 month average) volume
- 35 out of the 42 downside experienced greater volume (than the 3 month average).
Friday closed NEGATIVE with 42 decliners, 3 advancers and 0 flat;
Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;
Wednesday closed NEGATIVE with 34 decliners, 9 advancers and 2 flat;
Tuesday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;
Monday closed NEGATIVE with 34 decliners, 9 advancers and 2 flats;
Friday closed NEGATIVE with 30 decliners, 13 advancers and 2 flats;
Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;
Wednesday closed POSITIVE with 8 decliners, 35 advancers and 2 flat;
Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 3 flat;
Monday closed POSITIVE with 18 decliners, 25 advancers and 1 flat;
Friday closed NEGATIVE with 33 decliners, 11 advancers and 1 flat;
Thursday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
Wednesday markets were closed;
Tuesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;
Monday (12/3) closed POSITIVE with 10 decliners, 32 advancers and 3 flats;
- In 22 sessions in November – there were 1 holiday, 10 positive closes, 1 neutral and 10 negative closes;
- In 23 sessions in October – there were 17 negative closes and 6 positive closes
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.