October 16, 2019 8:45pm

Although the sector was up for the second day with a slipping Advance/Decline (A/D) line while the IBB closed down -0.11% and the XBI closed down -0.13%

News: Mesoblast (MESO) and Lonza (LONN.SW) have entered into an agreement for commercial manufacture of MESO’s lead allogeneic (off-the-shelf) cell therapy product candidate, remestemcel-L for pediatric steroid-refractory acute graft versus host disease (aGVHD). This agreement will facilitate inventory build ahead of the planned U.S. market launch (expects BLA submission in late 2019, if approved) of remestemcel-L.

In compiling my indication signals, I draw on logic, historical precedents, specific knowledge of the sector and its practices as to lessons learned.  It’s important for investors to identify and determine which indication is actually performance based.

 

While many talk about the shift in alternating sentiment, I monitor the pulse and focus of possible outcomes

 

The Dow closed down -22.82 points (-0.08%), the S&P closed down -5.99 points (-0.20%) and the NASDAQ closed down -24.52 points (-0.30%)

 

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

  • Wednesday the IBB closed down -0.11% while the XBI closed down -0.13%
  • Tuesday the IBB closed up +1.84% while the XBI closed up +1.91%
  • Monday the IBB closed up +0.38% while the XBI closed down -0.18%

 

The advance/decline line scenario of 45 covered companies:  

  • Wednesday the close was positive with an A/D line of 23/19, 0 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Tuesday the close was positive with an A/D line of 32/9, 1 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was negative with an A/D line of 12/28, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

The markets are all about what’s happening elsewhere!

Sector equities rose while market indexes fell slightly on Wednesday as weak retail sales data, coupled with persisting trade-war fears, offset strong earnings results.

Global economic data points to slower growth while the U.S. manufacturing sector is already contracting. In the center of those worries is the ongoing U.S.-China trade war, which is becoming increasingly uncertain.

China threatened to take countermeasures against the U.S. in response to a bill favoring protesters in Hong Kong. The democratic controlled U.S. House of Representatives passed a bill on Tuesday that would end Hong Kong’s special trading status with the U.S. unless the State Department determined found human rights were being respected <CNBC>.

WHY … are some of our elected officials working so … hard against the country’s interests?

Officials and diplomats said that differences over the terms of the U.K.’s split from the European Union had narrowed significantly on Tuesday. A crucial two-day summit of EU leaders begins in Brussels on Thursday. It is the last such meeting currently scheduled before the fast-approaching Brexit deadline.

 

The sector has to stop playing on mute and defensively and get more aggressive as earnings become an expletive!

 

Decliners:

  • Ionis Pharmaceuticals (IONS -$3.84 after Tuesday’s -$1.07);
  • Sage Therapeutics (SAGE -$3.45 after Tuesday’s +$4.93, Monday’s -$1.22, Friday’s +$4.58, Thursday’s  -$1.33 and last Wednesday’s -$2.21);
  • uniQure (QURE -$0.98 after Tuesday’s -$2.89);
  • Audentes therapeutics (BOLD -$0.84);
  • Homology Medicines (FIXX -$0.62);

Incliners:

  • ReNeuron (RENE.L +$14.00 after Tuesday’s -$16,50, Monday’s -$24.50, Friday’s -$4.00 and last Thursday’s +$3.50;
  • bluebird bio (BLUE +$2.07);
  • Solid Biosciences (SLDB +$1.16 after Tuesday’s -$0.15 and Monday’s +$0.59;
  • Spark therapeutics (ONCE +$1.04);
  • Ultragenyx (RARE +$0.93);

 

 

The percentage (%) indicators: 

  • Wednesday’s range of the 23 upside was +0.20% (VCEL) to +11.11% (RENE.L) while the 19 downside ranged from -0.40% (NTLA) to -6.25% (IONS);

 

  • Tuesday’s range of the 32 upside was +0.27% (PSTI) to +8.36% (RGNX) while the 9 downside ranged from -0.12% (BLFS) to -19.74% (KOOL);

 

  • Monday’s range of the 12 upside was +0.22% (ALNY) to +15.12% (ADVM) while the 28 downside ranged from -0.09% (GBT) to -14.67% (RENE.L);

 

 

Upside volume stats:  to compare

  • Wednesday: 2  out of the 23 upside had higher than the 3 month average volume;
  • Tuesday: 4  out of the 32 upside had higher than the 3 month average volume;
  • Monday: 3  out of the 12 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 3 out of the 19 downside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 9 downside had higher than the 3 month average volume;
  • Monday: 2 out of the 28 downside had higher than the 3 month average volume;

 

0 flat with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche is still being delayed (October?)

 

October’s sessions:

Wednesday closed POSITIVE with 19 decliners, 23 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 9 decliners, 32 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 13 decliners, 29 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 23 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 27 decliners, 12 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 38 decliners, 4 advancers, 1 flat and 1 reverse merged (HSGX), 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 25 decliners, 17 advancers, 1 flat and 2 acquired (AST & OSIR);

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

Thursday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 22 decliners, 18 advancers, 3 flats and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 36 decliners, 5 advancers, 2 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.