November 12, 2019 5:42pm

News: Solid Biosciences (SLDB -$8.18 or -74.36%) the FDA had put its P1/2 study of its experimental gene therapy treatment for Duchenne muscular dystrophy on clinical hold after one of the six (6) patients dosed with the treatment suffered acute kidney injury, among other serious side effects. This is the 2nd clinical hold placed on this study. In March 2018, the FDA held the study after a patient in the low-dose cohort was hospitalized.

In “our’ universe of cell and gene therapy, we are betting on the hope for a cure or a treatment but, we are dependent on the management team to represent our hopes and aspirations.  

 

The sector is what it is, until it isn’t and even then it doesn’t seem to be … and then a crash hits and sentiment is microscoped!

 

The Dow closed FLAT (0.00%), the S&P closed up +4.83 points (+0.16%) and the NASDAQ closed UP +21.81 points (+0.26%)

 

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

  • Tuesday the IBB closed up +0.34% while the XBI closed up +0.28%
  • Monday the IBB closed down -0.32% while the XBI closed down -0.27%
  • Friday the IBB closed up +1.86% while the XBI closed up +2.08%

 

The advance/decline line scenario of 45 covered companies: 

  • Tuesday the close was negative with an A/D line of 19/23, 0 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was negative with an A/D line of 14/27, 1 flats, 1 reversed merged (HSGX) and 2 acquired;                                       
  • Friday the close was positive with an A/D line of 29/11, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

Sentiment is being burned at the stake!

Another crash - Solid Biosciences (SLDB), the slowing of positive clinical results, a lot of earnings’ misses and the cell and gene therapy sector slows while many equities depreciate.

Who is next … I have a number of candidates as “runways” are getting leaned for some small cap equities!

 

Decliners:

  • Solid Biosciences (SLDB -$8.18 to $2.82);
  • Sage Therapeutics (SAGE -$2.79 after Monday’s -$2.06, Friday’s+$7.47, Thursday’s -$0.67 and last Wednesday’s -$5.73);
  • Alnylam Pharmaceuticals (ALNY -$1.60);
  • ReNeuron (RENE.L -$1.00 after Monday’s -$3.10);
  • Intrexon (XON -$0.52);

Incliners:

  • bluebird bio (BLUE +$3.29 after Monday’s  -$5.01, Friday’s +$2.02 and Thursday’s -$2.04);
  • CRISPR Therapeutics (CRSP +$2.67 after Monday’s +$0.37, Friday’s +$1.53,Thursday’s +$1.18, Wednesday’s+$1.23 and last Tuesday’s -$1.56;
  • Global Blood Therapeutics (GBT +$1.93);
  • Editas Medicine (EDIT +$1.93);
  • BioMarin Pharmaceuticals (BMRN +$0.55);

 

 

The percentage (%) indicators: 

  • Tuesday’s range of the 19 upside was +0.07% (FATE) to +9.47% (EDIT) while the  23 downside ranged from -0.77% (BCLI) to -74.36% (SLDB -$8.18);

 

  • Monday’s range of the 14 upside was +0.07% (AXGN) to +7.31% (KOOL) while the  27 downside ranged from -0.17% (ONCE) to -16.94% (CUR);

 

  • Friday’s range of the 29 upside was +0.03% (ONCE) to +10.28% (ADRO) while the 11 downside ranged from -0.30% (BLFS) to -16.94% (CUR);

 

 

Upside volume stats:  to compare

  • Tuesday: 8 out of the 19 upside had higher than the 3 month average volume;
  • Monday: 1 out of the 14 upside had higher than the 3 month average volume;
  • Friday: 8 out of the 29 upside had higher than the 3 month average volume;

Downside volume stats:

  • Tuesday: 9 out of the 23 downside had higher than the 3 month average volume;
  • Monday: 3 out of the 27 downside had higher than the 3 month average volume;
  • Friday: 7 out of the 11 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 could be soon according to rumors from FTC by year’s end.

 

November’s sessions:

Tuesday closed NEGATIVE with 23 decliners, 19 advancers, 0 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGAIVE with 27 decliners, 14 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 11 decliners, 29 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday closed POSITIVE with 18 decliners, 21 advancers, 3 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Wednesday closed NEGATIVE with 27 decliners, 13 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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

Monday closed NEGATIVE with19 decliners, 22 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 7 decliners, 33 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

 

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.