July 29, 2019 7:16pm

Sector and NASDAQ felt the cold floor as volumes also bottomed while the IBB closed up +0.09% and the XBI closed down -0.22%

Q2 Earnings: CRISPER Therapeutics (CRSP) reported a cash position of $427.9 M; then add-in the $175 M cash received from Vertex (VRTX) in July under the expanded collaboration agreement for DMD and DM1, proforma cash exceeds $600 M with a net loss of $53.7 M or -$1.01 per share.

Pre-open indications: 3 HITs and 3 MISS (1 by pennies)

It’s not hard to be right so often, it’s about refining expectation, defining insight and trusting your “gut” versus the machines or algorithms

 

We crave explanations because they give us an illusion of control.

 

Markets and indexes:

  • The Dow closed up +28.90 points or +0.11% to 27,192.45;
  • The S&P closed down -4.89 points or -0.16% at 3,020.97;
  • The NASDAQ was down -36.88 or -0.44% to 8,293.33;

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Monday the IBB closed up +0.09% while the XBI closed down -0.22%
  • Friday the IBB closed up +1.07% while the XBI closed up +1.81%

 

Henry’omics:

The title says it all … stocks on Monday stepped back from last Friday's highs as investors took a breather ahead of an expected interest rate cut by the Fed and looked for signs of progress from U.S.-China trade negotiations underway in Shanghai.

The Fed will announce its latest decision on whether to adjust interest rates at 2 p.m. ET Wednesday; Chairman Jerome Powell will also address the state of the economy in a press conference at 2:30 p.m. ET later Wednesday <CNBC>.

As I mentioned this a.m., Mylan NV's (MYL) shares jumped 12.6% after the generic drug maker reported that it was combining with Pfizer’s (PFE) Upjohn unit that sells its off-patent branded medicines, a move that brings blockbuster treatments Viagra, EpiPen and Lipitor under one umbrella. PFE shares slid 3.8% following news of the deal, and after the company lowered its full-year profit and revenue forecasts in an earlier-than-expected release of its quarterly results <Reuters>.

 

Pre-open post, “trade the recent highs; NOT a trusting sort … as the LPS (loss-per-share) my 45 covered companies earning’s season is about to begin today with uniQure NV (QURE) followed by eleven (11) noticed so far.”

 

Monday’s advance/decline line scenario of 45 covered companies:  

  • The open was negative with an A/D (A/D) line of 11/29 with 3 flat and 2 acquired;
  • The mid-day was negative with an A/D Line of10/30 with 3 flats and 2 acquired;
  • The close was negative with an A/D Line of 11/31 and 1 flat and 2 acquired;

 

Pre-open indications: 3 HITs and 3 MISS

  • uniQure (QURE) closed down -$3.53 – miss;
  • Pluristem (PSTI) closed up +$0.36 – miss;
  • Solid Bioscience (SLDB) closed down - +$0.37 – hit;
  • CRSPER Therapeutics (CRSP) closed down - +$0.60 – hit;
  • Editas Medicine (EDIT) closed up + $0.09 – miss;
  • ReNeuron (RENE.L) closed up +$5.00 – hit;

 

Earnings: CRISPER Therapeutics (continued) …

Q2’s Net loss was $53.7 M or -$1.01 per share compared to a loss of $38.4 M for Q2/18 or -$0.82 per share driven predominantly by increased R&D expense.

Q2 R&D expenses were $39.5 M compared to $25.6 M for Q2/18; the increase was driven by headcount and services expense supporting the advancement of the hemoglobinopathies program, the broadening of the wholly-owned immuno-oncology portfolio, as well as increased investment in its CRISPR/Cas9 platform research.

G&A Expenses were $15.8 M compared to $12.7 M; the increase was driven by headcount-related expense and external professional and consulting service expense.

 

Leading decliners were:

  • uniQure (QURE -$3.53 after Friday’s -$1.35);
  • Sage Therapeutics (SAGE -$3.29);
  • bluebird bio (BLUE -$2.92 after Friday’s-$0.32,  Thursday’s  -$3.71,Wednesday’s +$3.40, Tuesday’s +$0.48 and last Monday’s +$1.74;
  • Regenxbio (RGNX -$2.25);
  • Ultragenyx (RARE - $1.31)

Monday’s incliners:

  • ReNeuron (RENE.L +$5.00);
  • Homology Medicine (FIXX +$0.69);
  • Spark Therapeutics (ONCE +$0.59);
  • Audentes Therapeutics (BOLD +$0.56);
  • Ionis Pharmaceuticals (IONS +$0.40);

 

The percentage (%) indicators: 

  • Monday’s range of the 11 upside was +0.34% (EDIT) to +7.11% (PSTI) while the 31 downside ranged from -0.26% (CLLS) to -7.95% (CUR -$0.19);
  • Friday’s range of the 32 upside was +0.43% (BSTG +$0.01) to +34.87% (SLDB after a private placement) while the 9 downside ranged from -0.0006% (ONVO) to -37.10% (CUR) ;

 

Upside volume stats:  to compare

  • Monday: 2 out of the 11 upside had higher than the 3 month average volume;
  • Friday: 7 out of the 32 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Monday: 6 out of the 31 downside had higher than the 3 month average volume;
  • Friday: 4 out of the 9 downside had higher than the 3 month average volume;

 

1 flat – ATHX with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

 

July’s sessions and the beginning of Q3:

Monday closed NEGAIVE with 31 decliners, 11 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 9 decliners, 32 advancers, 2 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 32 decliners, 11 advancers, 0 flats and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 27 decliners, 14 advancers, 2 flats and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 17 decliners, 24advancers, 2 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 38 decliners, 4 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 14 decliners, 27 advancers, 2 flat and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 20 decliners, 23 advancers, 0 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 27 decliners, 15 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 15 decliners, 26 advancers, 2 flats and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 22 decliners, 21 advancers, 0 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 26 decliners, 14 advancers, 3 flats and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 25 decliners, 16 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 29 decliners, 13 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 24 decliners, 18 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday was a holiday;

Wednesday closed POSITIVE with 10 decliners, 31 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

 

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.