December 7, 2019 11:04am

Pre-open indications: 2 HITs <ReNeuron (RENE.L +$14.92) and Stemline Therapeutics (STML +$0.38) and 0 MISS

News: Sangamo Therapeutics (SGMO +$0.06) results from the P1/2 Alta study evaluating investigational SB-525 gene therapy in patients with severe hemophilia A showed that SB-525 was generally well tolerated and demonstrated sustained increased Factor VIII (FVIII) levels. Fate Therapeutics (FATE +$0.10) announced initial clinical data for its FT516 and FT500 off-the-shelf, iPSC-derived natural killer (NK) cell product candidates. (read more)

The week in review: 3 positive and 2 negative closes – check the results

Timely insights have pricing lean-tos within a volatile cell and gene therapy universe. 

 

My line in writing is separating actionable numbers or intelligence and news into a short-term investment thesis to tackle the “unknown unknowns”

 

The Dow closed UP +337.27 points (+1.22%), the S&P closed UP +28.48 points (+0.91%) and the NASDAQ closed UP +85.83 points (+1%)

 

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

  • Friday the IBB closed up +1.17% while the XBI closed up +1.15%
  • Thursday the IBB closed down -1.54% while the XBI closed down -1.56%
  • Wednesday the IBB closed up +1.25% while the XBI closed up +1.16%
  • Tuesday the IBB closed up +0.70% while the XBI closed up +1.36%
  • Monday the IBB closed down -1.20% while the XBI closed down -1.33%

 

The advance/decline line scenario of 45 covered companies:

  • Friday the close was positive with an A/D line of 29/9, 3 flats, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Thursday the close was negative with an A/D line of 9/31, 1 flat, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Wednesday the close was positive with an A/D line of 24/13, 4 flats, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Tuesday the close was positive with an A/D line of 25/12, 4 flats, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Monday the close was negative with an A/D line of 14/26, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

From this morning’s post, “Friday’s theme is conjecture as futures fluctuate; that something, if anything will enhance momentum and just some pricing sustainability as volume sets the pace.”

The sector jumped with tailwinds resulting from a previous downside session.

... While the indexes surged on Friday on the back of U.S. jobs growth that easily topped analyst expectations wrapping up a choppy week of trading.

What is there to read the positive jobs report: the Fed’s easing cycle is complete and it puts the US in a stronger position for trade war negotiations.

Friday’s also finished with mixed signals on the U.S.-China trade: China wants tariffs to be canceled as part of a “phase one” trade deal; President Trump wants to hold off on any deal until after the 2020 U.S. election.

The S&P 500 came into the session down 0.7% for the week, but Friday’s strong gains helped the index recover those losses. The Dow and NASDAQ each entered Friday trading down more than 1% week to date. They were only down 0.1% each for the week after Friday trading ended <CNBC>.

Pumping some weekend news:

  • Sangamo Therapeutics (SGMO +$0.06) results from the P1/2 Alta study evaluating investigational SB-525 gene therapy in patients with severe hemophilia A showed that SB-525 was generally well tolerated and demonstrated sustained increased Factor VIII (FVIII) levels following treatment with SB-525 through to 44 weeks, the extent of follow-up for the longest treated patient in the 3e13 vg/kg dose cohort.
  • Fate Therapeutics (FATE +$0.10) announced initial clinical data for its FT516 and FT500 off-the-shelf, iPSC-derived natural killer (NK) cell product candidates. The safety, tolerability, and immunogenicity data from the P1 dose-escalation stage of FT500, the first-ever cell therapy derived from a clonal master induced pluripotent stem cell line to undergo clinical investigation in the U.S., provide compelling evidence that multiple doses of iPSC-derived NK cells can be delivered off-the-shelf and administered without patient matching,

 

Think fear as a sector risk, as momentum grows and wanes affecting the ability and capacity to be deluded into NOT selling into strength by end-of-month and year roller-coaster sector “rides” while strength lies in alternating volume and percentage moves – check the Advance/Decline lines.

 

Decliners:

  • bluebird (BLUE -$1.23);
  • Alnylam Pharmaceuticals (ALNY -$0.47 after Thursday’s +2.25);
  • BioMarin Pharmaceuticals (BMRN -$0.16 after Thursday’s -$1.21 and Wednesday’s +$1.06);
  • AxoGen (AXGN -$0.13 after Thursday’s +$0.56 and Wednesday’s -$0.82);
  • Intellia Therapeutics (NTLA -$0.13);

Incliners:

  • ReNeuron (RENE.L +$14.92 after Thursday -$2.00 and Wednesday’s -$6.00);
  • Sage Therapeutics (SAGE +$4.28 after Thursday’s -$89.03);
  • Global Blood Therapeutics (GBT +$3.20 after Thursday’s +$1.97 and Wednesday’s +$1.69);
  • CRISPR Therapeutics (CRSP +$1.66 after Thursday’s -$1.39 and Wednesday’s -$1.03);
  • uniQure NV (QURE +$1.47);

 

The percentage (%) indicators:

  • Friday’s range of the 29 upside was +0.07% (BOLD) to +11.66% (RENE.L) while the 9 downside ranged from -0.20% (BMRN) to -3.68% (AGTC); 
  • Thursday’s range of the 9 upside was +0.38% (RARE) to +7.35% (MESO) while the 31 downside ranged from -0.02% (CLLS) to -59.67% (BOLD); 
  • Wednesday’s range of the 24 upside was +0.29% (VCEL) to +9.03% (AGTC) while the 13 downside ranged from -0.14% (VYGR) to -4.84% (AXGN); 
  • Tuesday’s range of the 25 upside was +0.08% (BLCM) to +105.98% (BOLD) while the 12 downside ranged from -0.06% (NTLA) to -3.40% (ONVO); 
  • Monday’s range of the 14 upside was +0.14% (ONCE) to +9.92% (SLDB) while the 26 downside ranged from -0.11% (IONS) to -9.22% (FATE);

 

Upside volume stats:  to compare

  • Friday: 7 out of the 29 upside had higher than the 3 month average volume;
  • Thursday: 3 out of the 9 upside had higher than the 3 month average volume;
  • Wednesday: 13 out of the 24 upside had higher than the 3 month average volume;
  • Tuesday: 16 out of the 25 upside had higher than the 3 month average volume;
  • Monday: 9 out of the 14 upside had higher than the 3 month average volume;

Downside volume stats:

  • Friday: 5 out of the 9 downside had higher than the 3 month average volume;
  • Thursday: 13 out of the 31 downside had higher than the 3 month average volume;
  • Wednesday: 8 out of the 13 downside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 12 downside had higher than the 3 month average volume;
  • Monday: 12 out of the 26 downside had higher than the 3 month average volume;

 

2 flat –BLCM and BSTG with 1 reverse merged (HSGX), 1 dropped (BTX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche could be soon according to rumors from FTC by year’s end.

 

December’s sessions:

Friday closed POSITIVE with 9 decliners, 29 advancers, 3 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday closed NEGATIVE with 31 decliners, 9 advancers, 1 flat, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Wednesday closed POSITIVE with 13 decliners, 25 advancers, 4 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed POSITIVE with 12 decliners, 25 advancers, 4 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGATIVE with 26 decliners, 19 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.