December 23, 2019 8:34am

News: Sarepta Therapeutics (SRPT) closed a deal with Roche with a staggering $1.15 billion — $750 million in upfront cash and $400 million in equity — for the rights to SRPT’s experimental gene therapy for Duchenne muscular dystrophy outside the US.  SRPT will retain the US rights to the drug, SRP-9001 — is eligible to receive another $1.7 billion in regulatory and sales milestones, in addition to royalties. Roche will also shoulder half the development costs for the therapy. Sangamo Therapeutics (SGMO) completed the transfer to Pfizer (PFE) of the SB-525 Hemophilia A gene therapy Investigational New Drug application (IND). Pfizer is advancing SB-525 into a P3 registrational clinical study in 2020 and has already commenced enrolling patients into a P3 lead-in study. Sangamo has now earned a $25 million milestone payment, per the terms of a December 2019 amendment to the parties’ collaboration.

Pre-open indications: BUY – SGMO, VSTM, VCEL, STML, AXGN, NTLA, ALNY and BLUE; SELL - CRSP

It’s an honor to be considered the “canary in the sector’s coal mine”! 

 

I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths – it’s more than opinion, the facts and truth need to be recognized!

 

Dow futures are UP +0.21% (+61 points), S&P futures are UP +0.20% (+6 points) and NASDAQ futures are UP +0.26% (+23 points)

 

U.S. stock index futures signaled a higher open on Monday after China said it will cut import tariffs on a wide range of goods;

European stocks flat as investors take profits into holidays with the pan-European Stoxx 600 hovering around the flat line by late morning;

Asia pacific stocks were subdued even amid greater optimism for U.S.-China relations’

 

Data Docket: November’s National Activity Index figures are due out of the U.S. at 8:30 a.m. ET.

 

Henry’omics:

Cell and gene therapy equities were crunching higher and then lower into year-end on intermittent momentum from alternating volume, profit-taking and inconsistent sentiment.

However, collaborations and acquisitions are driving value to the receivers of cash inflows and enhancing comparable’s value.

Macroeconomics and geo-politics are the risk under-currents of the successful upside and sorry full downside in markets; China’s finance ministry starting January 1, will lower import tariffs on over 850 products ranging from frozen pork and avocado to some types of semiconductors. The country is making efforts to boost imports amid a slowing economy and a trade war with the U.S.

Trade optimism overall boosted sentiment as U.S. President Trump on Friday said he had “a very good talk” with China’s leader Xi Jinping about the so-called phase one trade deal they struck in mid-December. That indicated more progress has been made after they reached the initial agreement <CNBC>.

 

Friday night’s post’s title:  “the sector closed down after Thursday’s spurt, two down sessions followed Monday’s positive close. The cadence was accentuated by the quadruple witching Friday.”

  • The NASDAQ closed UP +37.74 points (+0.42%)
  • The IBB closed up +0.90% and the XBI closed up +0.27%
  • The range of the 15 upside was +0.06% (AXGN) to +29.83% (AGTC) while the 19 downside ranged from -0.16% (NTLA) to -4.01% (XON); 
  • 9 out of the 15 upside had higher than the 3 month average volume;
  • 9 out of the 19 downside had higher than the 3 month average volume;

Review the content of Q4’s market:

  • December register 8 negative and 7 positive closes … so far
  • November registered 1 holiday, 12 positive and 8 negative close;
  • October registered 10 positive, 1 neutral and 14 negative closes;

 

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

Pre-open indications: BUY – SGMO, BLUE, VSTM, STML, AXGN, NTLA and ALNY; SELL - CRSP

 

 

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.