October 27, 2020 8:09am

Q3 earnings: uniQure NV (QURE)

Pre-open indications: 2 BUYs and 2 SELLs

What I provide is an “intelligence daily” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  My gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times

 

Dow futures are up +0.40% (+109 points), S&P futures are UP +0.44% (+15 points) and NASDAQ futures are UP +0.48% (+56 points)

 

U.S. stock futures rose Tuesday as markets attempt to rebound from a massive sell-off on Monday;

European stocks are struggling and lower in a choppy session as the pan-European Stoxx 600 hovered -0.1% below the flatline;

Asia-Pacific markets were mixed following the decline in U.S. equities on Monday;

 

Data Docket: The Conference Board’s Consumer Confidence Index for October will be released at 10 a.m. ET. Analysts polled by FactSet are expecting a reading of 102.3, after September’s reading of 101.8.

 

Henry’omics:

Tuesday’s opening – Eli Lilly (LLY) shares slump premarket after earnings miss while Merck’s (MRK) profit and revenue rise, beating expectation …

Monday’s decline was fueling by surge in Covid-19 cases compounded by diminishing hope of a stimulus package from Washington before the election, which is just one week away.

U.S. indexes, led by the Dow’s 700 points (-2.29%) drop followed by the S&P’s -64.42 points (-1.86%) and the Nasdaq’s -189.35 points (-1.64%) took big hits to start the week.

With less than a week of trading left in October, the Dow is down slightly for the month and the S&P 500 (+1.1%) and Nasdaq (+1.7%) are up.

 

Monday night’s post: RegMed Investors’ (RMi) closing bell: “markets decline as COVID-19 infections incline with still no stimulus to support markets” … https://www.regmedinvestors.com/articles/11605

  • The Nasdaq closed DOWN -189.35 points (-1.64%);
  • The IBB closed down -1.01% and XBI closed down -1.34%;
  • Sector volume was the usual LOW with 2 of the 9-upside having higher than the 3-month average volume with the increased volume of 3 of 24-downside having higher than the 3-month average volume;
  • The CBOE Volatility Index (VVIX: INDEX) was up +4.91 points or +17.82% at 32.46;
  • Monday’s percentage (%) of the 9-upside were +0.28% (GBT) to +4.97% (ATHX) while the 24-downside of -0.14% (VYGR) to -9.62% (SLDB);

Q4’s October, so far: 1 neutral, 9 positive and 8 negative closes

Q3: July through September: 1 neutral, 28 positive and 34 negative closes with 2 holidays

 

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

Maintaining Sell:

Biostage (BSTG) closed up +$0.04 to $1.40 with 217 shares traded after Friday’s -$0.07 to $1.36 with 200 shares traded.  

  • Question#1: WHAT is the status of the multi-million terminal death law suit that STILL hangs over the company like a “Sword of Damocles” to its future?
  • Question#2: Will RSM US, LLP BSTG’s auditor define the circumstances and possible effect of a loss or win in the Q3 earnings’ LPS (loss-per-share) 10-Q release and the insurance premiums involved?
  • Question#3: WHAT if negligence was involved or even complicity and knowledge of the surgery parameters or issuance of materials utilized?
  • Question#4: WHO would then have to pay, the insurance company or the company (BSTG), many questions that need to be answered?
  • Question#5: Shouldn’t the auditors have an opinion going forward to “inform” investors?

SELL into Strength:

CRISPR Therapeutics (CRSP) closed up +$1.48 to $94.13 after Friday’s $92.65 with a NEGATIVE -$1.88 or -2% aftermarket indication;

BUY on News:

uniQure NV (QURE) closed up +$0.82 to $43.45 after Friday’s $42.63 and last Thursday’s $41.26 with a NEGATIVE -$0.28 or -0.64% aftermarket indication. Earnings today with an extrapolation, QURE and Behring entered into a licensing agreement providing CSL Behring with exclusive global rights to etranacogene dezaparvovec. The agreement is one of the largest gene therapy deals announced to date and leverages CSL Behring’s global hematology capabilities and infrastructure to benefit hemophilia B patients around the world. Under the terms of the agreement, which is subject to regulatory review in the United States, Australia and the United Kingdom, QURE will receive a $450 million upfront cash payment and be eligible to receive up to $1.6 billion in payments based on regulatory and commercial milestones. The Company will also be eligible to receive tiered double-digit royalties in a range of up to a low-twenties percentage of net product sales arising from the collaboration. Under the terms of the licensing agreement, CSL Behring is responsible for the submission of a Biologics License Application, which is expected in the second half of 2021.

BUY:

Pluristem (PSTI) closed down -$0.36 to $9.51 with NO aftermarket indication. I believe PSTI is OVERSOLD with 141, 264 shares traded (3-month average volume = 433,892 shares). PSTI bounces hard to the downside yet, bolts to the upside when oversold;

 

The BOTTOM LINE: The spotlight is NOT on the stem, cell and gene therapy sector – thus they’re stripped of value i.e. OVERSOLD to be speculated upon.

A game of “pick-up stocks” instead of sticks is due!

The eye of a storm is upon us as this election plays-out!

 

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.