RegMed Investors’ (RMi) closing bell: another sell-off and downer for the sector

April 20, 2021 5:21pm

A second straight day of losses, while the Nasdaq dipped -0.9% as Biostage (BSTG) dived -$0.28 to $1.00

Pre-open indication performance: 8 HITs and 4 Miss

News: Vertex (VRTX) is paying $900 million to CRISPR Therapeutics (CRSP) for rights to 60% of the profits from sales of a gene-editing therapy called CTX001. CTX001 was developed jointly by VRTX and CRSP under a collaboration that began in 2015. The therapy is being tested in P1/2 trials to treat patients with sickle cell disease and beta thalassemia. <read more.

If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing! 

I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors

The Dow closed DOWN -256.33 points (-0.75%); the S&P closed DOWN -28.32 points (-0.68%) while the Nasdaq closed DOWN -128.50 points (-0.92%)

Henry’omics:

Indexes fell for a second day on Tuesday as strong corporate earnings failed to boost a market already near record highs, while an alarming rise in global Covid cases raised concerns about the recovery.

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

• Tuesday opened negative at 14/17, 3 flat and 1 acquired, stayed negative at the mid-day to 9/23, 2 flats and 1 acquired, closing negative at 12/20, 2 flats and 1 acquired;

RegMed Investors’ (RMi) pre-open: “a few oversold should break the surface although some of the “falling knives” many slip in the tug-of-war between algorithms” … https://www.regmedinvestors.com/articles/11873

Pre-open indication results:  8 HITs < Biostage (BSTG -$0.28 to $1.00 with 6,816 shares traded); SELL based on proxy filed: Adverum Biotechnologies (ADVM -$0.04), BUY the BOUNCE: AxoGen (AXGN +$0.08), Ionis Pharmaceuticals (IONS +$1.22), Editas Medicine (EDIT +$0.30), Pluristem (PSTI +$0.16), Intellia Therapeutics (NTLA $7.38), Vericel (VCEL -$1.31) and 4 MISS < CRISPR Therapeutics (CRSP +$6.63 on news), Fate Therapeutics (FATE -$1.47), Mesoblast (MESO -$0.26), Global Blood Therapeutics (GBT +$0.47),   

There are clear winners and losers

Jumping with share pricing momentum:

• CRISPR Therapeutics (CRSP), Ionis Pharmaceuticals (IONS), Global Blood Therapeutics (GBT), Precigen (PGEN), AxoGen (AXGN) to name 5 of the 12 inclining of the 35 covered

Hammered in today’s market:

• Fate Therapeutics (FATE), Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), Vericel (VCEL), BioLife Solutions (BLFS) to name 5 of the 20 declining of the 35 covered

Key metrics:

• Sector volume was LOW with 2 of the 12-upside having higher than the 3-month average volume with the volume of 3 of 20 downside having higher than the 3-month average volume;

• Tuesday’s percentage (%) of the 12-upside were +0.12% (NTLA) to +6.23% (PGEN) while the 20-downside ranges from -0.38% (RARE) to -21.87% (BSTG);

Tuesday’s (12 of 12) incline

• CRISPR Therapeutics (CRSP +$6.63 on VRTX news after Monday’s -$3.52);
• Ionis Pharmaceuticals (IONS +$1.22);
• AxoGen (AXGN +$0.55 after Monday’s -$1.05);
• Global Blood Therapeutics (GBT +$0.47);
• Precigen (PGEN +$0.46);
• Editas Medicine (EDIT +$0.30);
• Sangamo therapeutics (SGMO +$0.22);
• Voyager Therapeutics (VYGR +$0.20);
• Pluristem (PSTI +$0.16);
• Intellia Therapeutics (NTLA +$0.08 after Monday’s -$3.12);
• Verastem (VSTM +$0.01 after Monday’s +$0.02);
• Athersys (ATHX +$0.01);

Tuesday’s (10 of 20) decliners:

• Sage Therapeutics (SAGE -$1.60 after Monday’s +$0.41);
• Fate Therapeutics (FATE -$1.47 after Monday’s -$1.52);
• Alnylam Pharmaceuticals (ALNY -$1.37 after Monday’s -$1.48);
• Vericel (VCEL -$1.31 after Monday’s -$3.85);
• BioLife Solutions (BLFS -$1.20 after Monday’s -$1.46);
• Chinook Therapeutics (KDNY -$0.67);
• Regenxbio (RGNX -$0.61);
• uniQure NV (QURE -$0.57 after Monday’s -$0.99);
• Cellectis SA (CLLS -$0.51);
• MiMedx (MDXG -$0.51);

Closing: 2 – ReNeuron (RENE.L) and BrainStorm Cell Therapeutics (BCLI) and 1- Stemline Therapeutics (STML – acquired)

Sentiment and COVID-19:

• More than 195 million shots have been reported administered since Biden’s inauguration. The U.S. is reporting about 67,100 daily new infections, based on a seven-day average of data reported by Johns Hopkins University.

COVID Data Tracker <Million>:

• Tuesday 31,48 M cases,
• Tuesday’s death rate totaled 564,292 <Johns Hopkins University>
• Tuesday vaccinations:  212 M

Stats:

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

• Tuesday, the IBB closed flat at 0.00% and XBI closed down -0.33%

The CBOE Volatility Index (VVIX: INDEX) tracked:

• Tuesday was up +1.39 points or +8.04% at 18.68

Upside volume: low

• Tuesday: 2 out of the 12-upside had higher than the 3-month average volume;

Downside volume: low

• Tuesday: 3 out of the 20-downside had higher than the 3-month average volume;

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

• Tuesday’s percentage (%) of the 12-upside were +0.12% (NTLA) to +6.23% (PGEN) while the 20-downside ranges from -0.38% (RARE) to -21.87% (BSTG);

April, the beginning of Q2/21:

Tuesday closed negative with 12 advancers, 20 decliners, 3 flats and 1 acquired

The BOTTOM LINE: As I had stated, “I have NOT been buying into sustainability … I have been wrong yet in a few sessions, I have been righter, more often as mini-rotations have made the sector rally over bought, despite the 3-session uptrend.

Q1/21 earnings are being announced, Alnylam Pharmaceuticals (ANY) on Thursday, 4/29, Sage therapeutics (SAGE) on Tuesday, 5/4, AxoGen (AXGN) on Wednesday, 5/5 and Athersys (ATHX) on Thursday, 5/6.

Sector momentum remains “sketchy” and these depressed pricing guarantees more uncertainty and risks but, some rebounds.

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

My time frame of measurement is Friday to Friday and been proved right again, don’t get complacent …

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.