March 24, 2021 5:11pm

Is the lack of positive news, volatility, risks and pricing slides causing the suppressant or just plain-old profit taking?

Pre-open indication results: 4 HITs and 2 MISS

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What I provide is a trusted source of share pricing intelligence

Numbers based facts speak better then opinion as I see answers in numbers that equate to facts!

The Dow closed DOWN -3.09 points (-0.01%); the S&P closed DOWN -21.38 points (-0.55%) while the Nasdaq closed DOWN -265.81points (-2.01%)

 

Henry’omics:

Indexes gave up earlier gains and closed in the red Wednesday as cell and gene therapy equities – again sold off, continuing the rotation in four (4) of the last five (50 sessions.

  • With the XBI is down -4.90% to 131.75

The closer we get to the end of Q1/21, the more squeamish sector investors will get …

 

RegMed Investors’ (RMi) pre-open: “valuations have been deflated by roller-coaster sentiment and volatility which sketches a contradictory picture of the short-term. My concerns surround the cell and gene therapy sector, concerning when the sector runs-out of committed buyers?” …  https://www.regmedinvestors.com/articles/11829

 

Pre-open indication results:  4 HITs < Biostage (BSTG -$0.04 with 688 shares), BioLife Solutions (BLFS -$3.02), Sangamo Therapeutics (SGMO -$1.03), Ionis Pharmaceuticals (IONS +$0.31), and 2 MISS < Editas Medicine (EDIT -$5.09), Solid Biosciences (SLDB -$0.14)   

 

RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Wednesday opened negative at 10/24 and 1 acquired, stayed negative at the mid-day to 5/28 1 flat and 1 acquired, closing negative at 1/33 and 1 acquired;

 

There are clear winners and losers

Jumping with share pricing momentum:

  •  Brainstorm Cell Therapeutics (BCLI) to name 1 of the 1 inclining of the 35 covered

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Editas Medicine (EDIT), Intellia therapeutics (NTLA), fate Therapeutics (FATE), Vericel (VCEL) to name 5 of the 33 declining of the 35 covered

 

Key metrics:

  • Sector volume had LOW with 1 of the 1-upside having higher than the 3-month average volume with the volume of 11 of 33-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 1-upside was +3.06% (BCLI) while the 33-downside ranges from -0.71% (IONS) to -11.05% (EDIT);

 

Wednesday’s (1 of 1) incline

  • Brainstorm Cell Therapeutics (BCLI) +$0.02 after news of positive Topline Data in P2 Study Evaluating NurOwn® as a Treatment for Progressive MS);

Wednesday’s (10 of 33) decliners:

  • CRISPR Therapeutics (CRSP -$10.94 after Tuesday’s -$6.51 and Monday’s +$3.39);
  • Ultragenyx (RARE -$6.05 after Tuesday’s -$6.57 and Monday’s -$1.16);
  • Fate Therapeutics (FATE -$5.21 after Tuesday’s -$4.73 and Monday’s +$1.63);
  • Editas Medicine (EDIT -$5.09 after Tuesday’s -$2.40 and Monday’s +$3.48);
  • Vericel (VCEL -$4.05);
  • Alnylam Pharmaceuticals (-$4.03 after Tuesday’s -$5.59 and Monday’s -$0.01)
  • Intellia Therapeutics (NTLA -$4.00 after Tuesday’s -$3.17 and Monday’s +$2.68);
  • BioLife Solutions (-$3.02 after Tuesday’s +$3.41 after Q4 earnings’ loss, merger and Monday’s -$0.19);
  • ReNeuron (RENE.L -$3.00 after Tuesday’s -$3.00 and Monday’s -$1.00);
  • Regenxbio (RGNX -$3.00);

Closing: 1 - Stemline Therapeutics (STML – acquired)

 

Sentiment and COVID-19 infections:

  • Pfizer (PFE) started an early-stage clinical trial of an oral antiviral drug for Covid-19. Because it is taken by mouth, the drug could be used to treat newly infected Covid patients outside of the hospital. PFE already has an authorized vaccine in the U.S., but health experts have said the world will need an array of drugs and vaccines to end the pandemic.

Infection cases <Million>: never to forget …

  • Wednesday 29.93 M cases,
  • Wednesday’s death rate totaled 544,131 <Johns Hopkins University>

 

Stats:

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

  • Wednesday, the IBB closed down -2.84% and XBI closed down -5.14%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.90 points or +4.43% at 21.20

Upside volume: low

  • Wednesday: 1 out of the 1-upside had higher than the 3-month average volume;

Downside volume: low

  • Wednesday: 11 out of the 33-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: % and pricing drop

  • Wednesday’s percentage (%) of the 1-upside was +3.06% (BCLI) while the 33-downside ranges from -0.71% (IONS) to -11.05% (EDIT);

 

March, the 3rd month of Q1/21:

Tuesday closed negative with 1 advancer, 33 decliners and 1 acquired

Tuesday closed negative with 3 advancers, 31 decliners and 1 acquired

Monday (3/22) closed negative with 16 advancers, 18 decliners and 1 acquired

 

The BOTTOM LINE: The cell and gene therapy sector has seesawed this week (so far) following a two and a half (2.5) month-long rotation which has skewered my outlook for growth, leaving a haphazard path traveled and to be traversed!

Reiterating, “just another roller-coaster ride that cost us money but, it still shows sustainability is the real issue in this market!”

NOT for me - I am STILL sending up a red flag on stock pricing until earnings’’ season completes its run as volatility rules!

 A quote from Oliver Brennan, head of research at TS Lombard: “Earnings expectations have caught up with the pre-crisis level; risk here remains to the upside.”

 “Forewarned … earnings LPS (loss-per-share) season is upon us – my advice has been … trim and skim … if one can!”

“Again, my time horizon for HOLDING an equity is last Friday to the coming Friday” – think about that and check the Advance/Decline (A/D line) to VALIDATE my thesis.

 

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.