May 13, 2021 5:40pm

Since when does inflation and interest rates effect drug and biotech stocks, we create, they deflate

Pre-open indication performance: 6 HITs and 2 MISS

Earnings, this week: Thursday: BioLife Solutions (BLFS)

If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the slide of share pricing! My comments are important in trying to distinguish the temporary from real pricing digression or progress.

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The Dow closed UP +433.79 points (+1.29%); the S&P closed UP +49.46 points (+1.22%) while the Nasdaq closed UP +93.31 points (+0.72%)

 

Henry’omics:

U.S. indexes climbed on Thursday, rebounding from steep losses in the previous session.

Traders across the board cited a rise in interest rates, triggered by a hotter-than-expected inflation report, for the midweek slump. <CNBC>

 

Data Docket: The Labor Department reported that the prices American consumers pay for goods and services accelerated at their fastest pace since 2008 last month with the Consumer Price Index spiking 4.2% from a year ago.

 

RegMed Investors’ (RMi) pre-open: “recovery is creeping higher while many still lose. I will take it as long as creeping occurs or develops gradually, a gigantic leap of valuation will be subject to being overbought and sold down” … https://www.regmedinvestors.com/articles/11909  

 

 

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

  • Thursday opened positive at 23/8, 1 flat and 1 acquired, flipped negative at the mid-day to 4/29, 1 flat and 1 acquired, closing negative at 8/25, 1 flat and 1 acquired;

Pre-open indication results:  6 HITs < Biostage (BSTG -$0.10 at $1.15 with 950 shares traded), bluebird bio (BLUE -$0.54), Intellia Therapeutics (NTLA -$3.12), Sangamo Therapeutics (SGMO -$0.07), Sage Therapeutics (SAGE -$4.43), ReNeuron (RENE.L -$4.50) and 2 MISS < Fate Therapeutics (FATE -$0.78), Global Blood Therapeutics (GBT -$1.14)>

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … to date: https://www.regmedinvestors.com/articles/11628

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Regenxbio (RGNX), AxoGen (AXGN), Vericel (VCEL), Ionis Pharmaceuticals (IONS), Ultragenyx (RARE) to name 5 of the 8 inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L), Intellia Therapeutics (NTLA), Sage Therapeutics (SAGE), Global Blood Therapeutics (GBT), BioLife Solutions (BLFS) – earnings tonight, to name 5 of the 25 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 1 of the 8-upside having higher than the 3-month average volume with the volume of 8 of 25-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 8-upside were +0.67% (MESO) to +1.40% (VCEL) while the 35-downside ranges from -0.33% (ALNY) to -8.05% (PSTI);

 

Thursday’s (8 of 8) incliners:

  • Vericel (VCEL +$0.66 after Wednesday’s -$2.81);
  • Regenxbio (RGNX +$0.48);
  • Ultragenyx (RARE -$0.31);
  • MiMedx (MDXG +$0.22);
  • AxoGen (AXGN +$0.21);
  • CRISPR Therapeutics (CRSP +$0.16 after Wednesday’s -$2.70, Tuesday’s +$2.08 and Monday’s -$6.24)
  • Ionis Pharmaceuticals (IONS +$0.06 after Wednesday’s +$0.62);
  • Mesoblast (MESO +$0.05);

Thursday’s (10 of 25) decliners:

  • ReNeuron (RENE.L -$4.50 after Wednesday’s -$1.00, Tuesday’s -$14.00 and Monday’s -$0.50)
  • Sage Therapeutics (SAGE -$4.43;
  • Intellia Therapeutics (NTLA -$3.12 after Wednesday’s -$2.17, Tuesday’s +$5.14 and Monday’s -$6.71);
  • Global Blood Therapeutics (GBT -$1.14 after Wednesday’s -$1.19);
  • BioLife Solutions (BLFS -$0.85 – earnings tonight after Wednesday’s -$1.29 and Tuesday’s +$0.77);
  • Fate Therapeutics (FATE -$0.78 after Wednesday’s -$5.71 and Tuesday’s +$2.29);
  • bluebird bio (BLUE -$0.54 after Wednesday’s +$0.35, Tuesday’s +$1.10 and Monday’s -$2.08);
  • Cellectis SA (CLLS -$0.46);
  • Alnylam Pharmaceuticals (ALNY -$0.44 after Wednesday’s +$0.95, Tuesday’s +$3.78 and Monday’s -$2.67);
  • Precigen (PGEN -$0.41 after Wednesday’s +$0.28);

Closing 1 – Verastem (VSTM) and 1 - Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

Wednesday’s COVID Data Tracker <Million>:

  • U.S. coronavirus case counts fell further, with the nationwide average now at about 36,700 per day over the past week, the lowest level since Sept. 14. The U.S. is reporting an average of 2.2 million daily vaccinations over the past seven days, federal data shows, and more than 46% of the country’s population has received one shot or more.
  • Cases: 32.5 M
  • Death rate totaled 580.073 - dipping <Johns Hopkins University>
  • Vaccinations:  58.7% <About 2 in 5 American adults are now fully vaccinated>

 

Stats:

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

  • Thursday, the IBB closed down -0.16% and XBI closed down -1.32%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -4.46 point or -16.17% to 23.13

Upside volume: low

  • Thursday: 1 out of the 8-upside had higher than the 3-month average volume;

Downside volume: low

  • Thursday: 8 out of the 25-downside had higher than the 3-month average volume

Percentage (%) movement/range statistics: LOW % with limited pricing drops as upside maintains

  • Thursday’s percentage (%) of the 8-upside were +0.67% (MESO) to +1.40% (VCEL) while the 35-downside ranges from -0.33% (ALNY) to -8.05% (PSTI);

 

May, second month of Q2/21:

Thursday closed negative with 8 advancers, 25 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE:  Reiterating, the cell and gene therapy sector has been experiencing “whiplash which is more than an event or an accident”.

What changes, another session of “slim pickings” in the upside/downside sector.

Reiterating, sector momentum remains TOO “fluid” leaving share pricing more uncertain as earnings’ season LPS (loss-per-share) declines induce more downside risks but, hopefully a few 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.