May 1, 2020 6:01pm
Breaking news: Gilead sciences (GILD) gets emergency FDA authorization for remdesivir to treat coronavirus
Pre-open indications: 3 HITs < Athersys (ATHX (+$0.15), AxoGen (AXGN +$0.09), ReNeuron (RENE.L $0.00) and 5 MISS bluebird bio (BLUE -$3.11), CRISPR Therapeutics (CRSP -$0.74), Intellia therapeutics (NTLA (-$0.85), Mesoblast (MESO -$0.53), Adverum Biotechnologies (ADVM +$0.15) – in this market , sector investors were lucky to just break even
The week in review… one untenable fact, Athersys (ATHX), AxoGen (AXGN) and MiMedx (MDXG) “screw” ordinary Americans who are unemployed and needy – HOLD CEOs accountable <read more>
An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector. Check the BOTTOM LINE <read more>
The Dow closed DOWN -622.03 points (-2.55%), the S&P closed DOWN -81.72 points (-2.81%) while the NASDAQ closed DOWN – 284.60 points (3.20.%)
Sector equities slumped on Friday as shares of Alnylam Pharmaceuticals (ALNY) led the universe lower on the month’s first day of trading following two (2) Q1 earnings results <CRSP and QURE>.
The S&P 500 closed 12.7% higher in April while Dow advanced +11.1% as the Nasdaq jumped +15.5% but that was yesterday’s and yesterday’s gone (Chad and Jeremy).
One question is where the rebuke is going President Trump complained that China should be held accountable for its actions amid the global coronavirus outbreak, which started in the densely populated commercial city of Wuhan, China.
- Late last year, the White House agreed to refrain from adding new tariffs on Chinese imports following a trade spat that began in January 2018.
A sign of market and sector condition: Lyra Therapeutics, Inc. (LYRA) announced the pricing of its initial public offering of 3,500,000 shares of common stock at a public offering price of $16.00 per share, before deducting underwriting discounts and commissions. All of the common stock is being offered by Lyra. The offering is expected to close on May 5, 2020, subject to customary closing conditions. In addition, Lyra has granted the underwriters a 30-day option to purchase up to an additional 525,000 shares of its common stock at the initial public offering price less the underwriting discounts and commissions. The gross proceeds of the offering are expected to be $56.0 million, excluding any exercise of the underwriters’ option. Lyra’s common stock was expected to begin trading on the Nasdaq on May 1, 2020, under the ticker symbol “LYRA. ”BofA Securities, Jefferies and William Blair are acting as joint book-running managers for the offering. BTIG is acting as a co-manager for the offering.
Also I have called out Athersys (ATHX +$0.15) who raise money +$57.6 million while receiving PPP funds and AxoGen (AXGN -$0.09) for accepting PPP funds when one and another had approximately $96 million (1231/19) and a +4% increase in sales which now includes MiMedx Group (MDXG -$0.19) which received $10 million and … has paid fines to settle SEC investigations. In early April, MiMedx, a maker of skin grafts and other biomaterials, also agreed to pay $6.5 million to end a Justice Department probe into claims it defrauded the federal government.
- MDXG neither admitted nor denied wrongdoing; the ability of these publicly traded companies to secure loans while many other small businesses suffers;
- MDXG also secured $75 million (end of last year) financing from Blue Torch Finance LLC. And in March, the company published restated earnings through 2018, reflecting an overstatement of at least $70 million in revenue over several years. Its report for 2019 has been delayed.
- The Trump Administration should have a plan in place to prioritize scarce PPP funds so that real small businesses get priority.
Today sector volume SLUMPED as 2 of the 8-downside as compared to 8 of the 25-upside as compared to three (3) month averages which also reflects upon the LOWERED change percentage (%) of the 8-upside were +0.43% (SLDB +$0.01) to +6.88% (FIXX) while the 25-downside ranged from -0.38% (IONS) to -16.36% (CLBS -$0.35) <comparisons are reflected below>
Hammered AGAIN in today’s market:
- Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), CRISPR Therapeutics (CRSP), Regenxbio (RGNX), Global Blood Therapeutics (GBT) and Fate Therapeutics (FATE)
Jumping in today’s sector:
- Aduro Biotech (ADRO), Adverum Biotechnologies (ADVM), Athersys (ATHX), Applied Genetic Technologies (AGTC), AxoGen (AXGN), Brainstorm Cell Therapeutics (BCLI), Homology Medicine (FIXX) and Solid Biosciences (SLDB)
Did you NOTICE that bigger names with higher pricing were the most hammered in the first day of May and are soon to have earnings released?
- RegMed Investor (RMi) … Q1/2020 earnings reporting dates … https://www.regmedinvestors.com/articles/11341
April was a ‘sloppy” month as one measures the positive versus negative closes of the month.
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Friday, the IBB closed down -2.50% and XBI also closed down -2.74%
- Thursday, the IBB closed down -1.43% and XBI also closed down -2.53%
- Wednesday, the IBB closed up +0.79% and XBI also closed up +0.56%
- Tuesday, the IBB closed down -2.13% and XBI also closed down -3.09%
- Monday, the IBB closed up +1.07% and XBI also closed up +1.34%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Friday was up +3.04 points or +8.90% at 37.19,
- Thursday was up +2.39 points or +7.65% at 33.62,
- Wednesday was down -2.25 points or -6.79% at 31.29,
- Tuesday was up +0.28 points or +0.84% at 33.57,
- Monday was down -2.84 points or -7.88% at 33.10,
RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Friday opened negative at 5/29 and 1 flat, stayed further negative at the mid-day at 2/31 and 2 flats and closed negative at 8/25 and 2 flats;
- Thursday opened negative at 3/30 and 2 flats, popped at 10 a.m. to 14/20 and 1 flat, slipped further negative at the mid-day at 6/28 and 1 flat and closed negative at 8/25 and 1 flat;
- Wednesday opened positive at 24/11, stayed positive at the mid-day at 28/6 and 1 flat and closed positive at 22/13;
- Tuesday opened negative at 12/23, stayed negative at the mid-day at 7/27 and 1 flat and closed negative at 7/28;
- Monday opened negative at 23/9 and 3 flats, strayed positive at the mid-day at 25/8 and 2 flats and closed positive at 22/11 and 2 flats;
Friday’s (only 8) incliners:
- Homology Medicine (FIXX +$0.83);
- Applied Genetic Technologies (AGTC +$0.22);
- Athersys (ATHX +$0.15);
- Adverum Biotech (ADVM +$0.15 after Thursday’s -$1.21 and Wednesday’s +$0.90);
- Brainstorm Cell therapeutics (BCLI +$0.11);
- AxoGen (AXGN +$0.09);
- Aduro Biotech (ADRO +$0.015);
- Solid Biosciences (SLDB +$0.01);
Friday’s (bottom 10) decliners:
- Regenxbio (RGNX -$3.36 after Thursday’s -$1.25, Wednesday’s +$0.37, Tuesday’s -$2.40, Monday’s +$1.68 and last Friday’s +$2.88;
- bluebird bio (BLUE -$3.11 after Thursday’s -$2.63, Wednesday’s -$0.84, Tuesday’s -$4.17, Monday’s +$2.94 and last Friday’s +$4.67);
- uniQure NV (QURE -$3.10 after Thursday’s +$0.37) after earnings and possible acquisition rumors of Sanofi’s (SNY) interest;
- Alnylam Pharmaceuticals (ALNY -$2.73 after Thursday’s -$4.11, Wednesday’s -$1.69, Tuesday’s -$5.20, Monday’s -$2.93 and last Friday’s +$3.99;
- Global Blood Therapeutics (GBT -$2.23 after Thursday’s -$2.22);
- Sage Therapeutics (SAGE -$1.85 after Thursday’s -$1.54 after Wednesday’s +$0.65);
- Ultragenyx (RARE -$1.78 after Thursday’s -$3.21 after Wednesday’s -$0.06, Tuesday’s -$5.27, Monday’s +$2.74 and last Friday’s +$1.66);
- Cellectis SA (-$0.99);
- Editas Medicine (EDIT -$0.92;
- Intellia Therapeutics (NTLA -$0.85);
Percentage (%) movement/range statistics: look closely …
- Friday’s % of the 8-upside were +0.43% (SLDB +$0.01) to +6.88% (FIXX) while the 25-downside ranged from -0.38% (IONS) to -16.36% (CLBS -$0.35);
- Thursday’s % of the 7-upside were +0.18% (BLFS) to +8.06% (BSTG) while the 27-downside ranged from -0.41% (VCEL) to -9.26% (ADVM);
- Wednesday’s % of the 22-upside were +0.22% (GBT) to +11.45% (AXGN) while the 13-downside ranged from -0.09% (RARE) to -13.67% (PSTI);
- Tuesday’s % of the 7-upside were +0.61% (CLLS) to +4.61% (AXGN) while the 28-downside ranged from -0.49% (BCLI) to -13.1% (MESO);
- Monday’s % of the 22-upside were +0.40% (IONS) to +12.44% (SLDB) while the 11-downside ranged from -0.38% (FIXX) to -49.03% (VSTM);
Sentiment and a few daily indicators:
Electonic trading is taking its ...toll.
The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …
- Friday’s 1 million
- Thursday’s 1 million
- Wednesday’s 1 million
- Tuesday’s 988,400
- Monday’s 972,900,
Friday’s death rate escalated to total of 63,019 from Thursday’s 60,999 from Wednesday’s 58,968, Tuesday’s 56,253 and Monday’s 55,118 <John Hopkins University>
Upside volume stats:
- Friday: 2 out of the 8-upside had higher than the 3-month average volume;
- Thursday: 3 out of the 7-upside had higher than the 3-month average volume;
- Wednesday: 7 out of the 22-upside had higher than the 3-month average volume;
- Tuesday: 0 out of the 7-upside had higher than the 3-month average volume;
- Monday: 10 out of the 22-upside had higher than the 3-month average volume;
Downside volume stats:
- Friday: 8 out of the 25-downside had higher than the 3-month average volume;
- Thursday: 1 out of the 27-downside had higher than the 3-month average volume;
- Wednesday: 3 out of the 13-downside had higher than the 3-month average volume;
- Tuesday: 6 out of the 28-downside had higher than the 3-month average volume;
- Monday: 5 out of the 11-downside had higher than the 3-month average volume;
Closing flat - 2: Biostage (BSTG) and ReNeuron (RENE.L)
Friday (5/1) closed negative with 25 decliners, 8 advancer and 2 flats
The BOTTOM LINE: new month with a Henry’omics quote, “If you do not change direction, you may end up where you are heading.”
I also reiterated, “don’t be fooled by these downsides, the oversold will rise again”.
Let me retreat to the traditional origin of the phrase "Sell in May and Go Away" which was thought to originate from an old English saying, "Sell in May and go away, and come on back on St. Leger's Day (a horse race)." This phrase refers to a custom of aristocrats, merchants, and bankers who would leave the city of London and escape to the country during the hot summer months.
Traders and investors who are likely to spend more time on vacation between Memorial Day and Labor Day mimic this trend and have adopted the phrase as an investing ADAGE.
- For over half a century stock market patterns have supported the theory behind the strategy.
So, ROTATE your portfolio NOW – it’s a game of share pricing risk i.e. “musical chairs!
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.