March 12, 2019 8:10am

Q4 and FY18 LPS (loss-per-share) earnings continue as volatility worries continue

What's the happening: Cowen Healthcare conference in Boston, Ma rolls

Pre-open indications:  1 BUY, 5 SELLs and 3 TRADEs

Q4 and FY18 results: Homology Medicines

 

Skim if you can trim, buy if it will fly and sell if compelled!

It’s not hard to be right so often, it’s about refining expectation, defining insight and NOT being indentured to ANY financial institution! That’s why the term “quantamental,” a blend of the two styles, may soon become common parlance among ordinary investors.

 

U.S. stock index futures are mixed

Dow futures are DOWN -0.32% (-81 points), S&P futures are DOWN -0.06% (-5 points) and NASDAQ futures are UP +0.05% (+4 points)

 

U.S. stock index futures traded slightly lower on Tuesday morning," 

Europe stocks mostly higher ahead of crucial Brexit vote; VW shares slip;

Asian equities got a slight boost after British Prime Minister Theresa May got legally binding assurances from the EU over the most contentious part of the deal, the Irish backstop;

 

Data docket: NFIB survey at 6:00 a.m. ET and inflation numbers at 8:30 a.m. ET.

 

Tuesday’s indications in the pre-market:

The iShares Nasdaq Biotechnology (IBB) is NOT indicating;

The SPDR S&P Biotech ETF (XBI) is NOT indicating;

The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.09% UPSIDE;

The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.12% DOWNSIDE

 

Henry’omics:

The sector is "hoing and praying" to the GODS of thrading to set another upside direction!

 

From Friday’s closing bell post, “a strong dose of the upside. Cowen conference was a busy day of companies showing their depth.”

  • Bouncing to the upside:  BLUE (+$8.18), SAGE (+$4.66), ALNY (+$4.58), IONS (+$3.46) and QURE (+$2.83)
  • Leading the pack to the downside: STML (-$0.57), VCEL (-$0.19), CUR (-$0.065), MESO (-$0.04) and MDXG (-$0.037)
  • In March, there were 2 negative and 5 positive closes;
  • Range of the 37 upside was +0.17% (ONCE) to +11.45% (BTX +$0.15) while the 7 downside ranged from -0.25% (BCLI) to -11.44% (CUR);
  • 11 out of the 37 upside had higher (than the 3 month average) volume
  • 3 out of the 7 downside experienced greater volume (than the 3 month average)

 

Q4 and FY18 results: Homology Medicines (FIXX)

Net loss Q4 was -$19 M or -$0.51 per share, compared to a net loss of -$11.9) M or -$4.56 per share for Q4/17.

Net loss for the year ended December 31, 2018 was -$57.2 M or -$2.00 per share, compared to a net loss of -$30.0 M or -$12.10 per share for the same period in 2017, reflective of share changes related to the FIXX’s initial public offering.

Revenues of $980 K …

R&D expenses for Q4 was $16.3 M as compared to $9.6 M an d FY18 was $47.9 M as compared to $21.4 M for the comparable periods in 2017;

G&A expenses for Q4 were $5.1 M as compared to $2.7 M FY18 as compared to $2.7 M and FY18’s $17.3 M, as compared to $8.3 M for the comparable periods in 2017. G&A expenses increased due to personnel costs as a result of new hires, increased facility costs including rent expense, and costs associated with expanded operations in support of FIXX’s IPO and financial reporting requirements.

A cash position of $214.7 M and a runway until Q4/2020

 

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

Cellectis SA (CLLS) closed up +$0.32 to $18.36 after Q4 and FY18 results were released but, there is a negative -$0.44 or -2.40% aftermarket indications – BUY to SELL;

Bluebird bio (BLUE) closed up +$8.18 to $147.01 having closed down on Friday -$1.07 to $138.83 and has a Tuesday positive +$0.09 or +0.06% aftermarket indication after sickle cell news appeared on 60 Minutes. Time to take some profit – SELL;

CRISPR Therapeutics (CRSP) closed up +$1.34 to $39.04 and has a negative -$0.126 or -0.41% indication – TRADE;

Editas Medicine (EDIT) closed up +$1.24 to $23.84 with NO aftermarket indication. I listened to their presentation at Cowen and was NOT impressed - BLAND and its timing to IND – TRADE;

Intellia therapeutics (NTLA) closed up +$0.89 to $16.58 with NO aftermarket indication – TRADE;

Stemline Therapeutics (STML) closed down -$0.57 to $11.05 after Friday’s +$0.60 to $11.62 and has news, Monday a.m. of expanding its oncology pipeline in that it has exclusively licensed worldwide rights to develop and commercialize a novel, oral, selective small molecule RET (rearranged during transfection) kinase inhibitor from the CRT Pioneer Fund LP, a £70 million specialist oncology investment fund managed by Sixth Element Capital, a UK based fund manager. The RET inhibitor was rationally designed by scientists at Cancer Research UK Manchester Institute at the University of Manchester (United Kingdom). The preclinical compound has been designated SL-1001 and is expected to enter the clinic in 2020 – Maintaining BUY;

ReNeuron (RENE.L) closed up +$2.00 to $82.50 after Monday’s pre-open +$1.95 to $82.45 after Friday’s close of $80.50 having closed Thursday at  -$3.00 to $76.50 after Wednesday’s -$3.00 to $79.50, Tuesday’s +$7.00 to $82.50 and Monday’s +$19.50 to $75.50 after last Friday’s +$9.00 to $65.00 –  to BUY to SELL;

Sage Therapeutics (SAGE) closed up +$4.66 to $155.57 and has a negative -$0.37 or -$0.24 aftermarket indication. Four (4) sessions ago, SAGE was trading at $149.70 with a $5.87 premium – SELL;

 

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.