May 19, 2021 5:32pm

Fundamentals are trashed as sentiment crashes the cell and gene therapy sector yet again

News: Voyager Therapeutics (VYGR) announced key leadership transitions and a strategic shift toward a refocused pipeline and expanded investment in its innovative, next-generation AAV capsid platform, TRACER (Tropism Redirection of AAV by Cell-type-specific Expression of RNA). <read more>

Pre-open indication performance: 6 HITs and 2 MISS

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The Dow closed DOWN -164.62 points (-0.48%); the S&P closed DOWN -12.15 points (-0.29%) while the Nasdaq closed DOWN -3.90 points (-0.03%)

 

Henry’omics:

Another wild session … as sentiment was smashed by a sudden plunge in cryptocurrencies including bitcoin which is the poster child for rampant market speculation and risk appetites.

Indexes incurred sharp losses in trading on Wednesday as the cell and gene therapy slumped in nine (9) of twelve (12) may sessions.

The Dow traded 300 points lower after dropping 586 points at its low of the day. The S&P 500 fell trading in the red, while the Nasdaq dived.

 

Data Docket: The Fed’s minutes said a strong pickup in economic activity would warrant discussions about tightening monetary policy in the coming months.

 

RegMed Investors’ (RMi) pre-open: “weakness, slumping sector equities may NOT be a bargain quite yet” … https://www.regmedinvestors.com/articles/11917

 

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

  • Wednesday opened negative at 5/28, 1 flat and 1 acquired, stayed negative at the mid-day to 6/28, 1 acquired, closing negative at 8/27 and 1 acquired;

 

Pre-open indication results:  6 HITs <Applied Genetic Technologies (AGTC -$0.21), BioLife Solutions (BLFS -$0.39), bluebird bio (BLUE -$1.24), Editas Medicine (EDIT -$0.46), Global Blood Therapeutics (GBT -$0.86) SELL into Strength: CRISPR Therapeutics (CRSP -$2.10) and 2 MISS <Maintain SELL: Biostage (BSTG +$0.16 at $1.30 with 930 shares traded – “pumped”); SELL: Chinook Therapeutics (KDNY +$0.69)>  

 

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:

  • Chinook Therapeutics (KDNY), AxoGen (AXGN), MiMedx (MDXG), Vericel (VCEL), uniQure NV (QURE) Biostage (BSTG), Verastem (VSTM) to name 7 of the 7 inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L), Ultragenyx (RARE), Fate Therapeutics (FATE), CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA) to name 5 of the 27 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 1 of the 7-upside having higher than the 3-month average volume with the volume of 2 of 27-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 7-upside were +0.49% (VCEL) to +14.19% (BSTG) while the 27-downside ranges from -0.16% (ALNY) to -6.45% (BLCM);

 

Wednesday’s (7 of 7) incliners:

  • Chinook Therapeutics (KDNY +$0.68 after Tuesday’s -$0.53 and Monday’s +$1.87);
  • AxoGen (AXGN +$0.46 after Tuesday’s -$0.70 and Monday’s -$0.39);
  • MiMedx (MDXG +$0.44 after Tuesday’s -$0.16 and Monday’s -$0.27);
  • Vericel (VCEL +$0.25);
  • uniQure NV (QURE +$0.22 after Tuesday’s +$0.86 after Monday’s -$0.73);
  • Biostage (BSTG +$0.16 (who is buying with the pump volume purchases) after Tuesday’s -$0.16 and Monday’s +$0.15);
  • Verastem (VSTM +$0.11);

Wednesday’s (10 of 27) decliners:

  • ReNeuron (RENE.L -$6.00);
  • Ultragenyx (RARE -$2.81 after Tuesday’s +$1.14 and Monday’s -$0.59);
  • Fate Therapeutics (FATE -$2.71 after Tuesday’s +$1.69 and Monday’s -$0.36);
  • Intellia Therapeutics (NTLA -$3.11 after Tuesday’s -$0.33 and Monday’s -$0.35);
  • CRISPR Therapeutics (CRSP -$1.88 after Tuesday’s +$3.44 and Monday’s +$2.58);
  • Ionis Pharmaceuticals (IONS -$1.51 after Tuesday’s -$0.45 and Monday’s -$0.92);
  • Sage Therapeutics (SAGE -$1.46);
  • bluebird bio (BLUE -$1.24 after Tuesday’s +$0.76 and Monday’s -$0.41);
  • Global Blood Therapeutics (GBT -$0.86 after Tuesday’s +$0.98 and Monday’s +$0.13);
  • Cellectis SA (CLLS -$0.56 after Tuesday’s -$0.55 and Tuesday’s +$0.53);

Closing 1 - Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • Covid case counts are declining by 5% or more in nearly every U.S. state as nationwide level of infections and deaths continue their downward trends.

Wednesday’s COVID Data Tracker <Million>:

  • Cases: 32.82 M
  • Death rate totaled 584,337 - dipping <Johns Hopkins University>
  • Vaccinations:  60.2%

 

Stats:

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

  • Wednesday, the IBB closed down -0.92% and XBI closed down -1.75%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.84 points or +3.94% at 22.18

Upside volume: low

  • Wednesday: 1 out of the 7-upside had higher than the 3-month average volume;

Downside volume: low

  • Wednesday: 2 out of the 27-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: 

  • Wednesday’s percentage (%) of the 7-upside were +0.49% (VCEL) to +14.19% (BSTG) while the 27-downside ranges from -0.16% (ALNY) to -6.45% (BLCM);

 

May, second month of Q2/21:

Wednesday closed negative with 7 advancers, 27 decliners and 1 acquired

 

Voyager Therapeutics (VYGR) transition:

  • Michael Higgins, chairman of the board of directors, will assume the role of interim chief executive officer (CEO) and Glenn Pierce, M.D., Ph.D., board director, will assume the role of interim chief scientific officer (CSO). Mr. Higgins succeeds Andre Turenne, who has decided to step down from his roles as president and CEO and as a board director, effective in early June, to pursue new opportunities. Mr. Turenne will support the Company in an advisory capacity as the Company searches for a permanent CEO. Voyager also announced that Omar Khwaja, M.D., Ph.D., has resigned from his role as chief medical officer (CMO) and head of research and development, effective at the end of May. Dr. Khwaja will be returning to Europe to pursue a new scientific and clinical leadership opportunity. Maria Lopez-Bresnahan, M.D., SVP of translational medicine and clinical development, will continue to lead the Company’s clinical development programs, including the Company’s program for Huntington’s disease.

 

The BOTTOM LINE: Back on the merry-go-round of share price as sentiment turns the downward slide.

Q1 earnings season is wrapping up and my reaction to earnings LPS (loss-per-share) results reveals more than some skepticism that Q1 losses provide a reason for additional forward-looking less than optimistic and more pessimism through the mid-year.”

Reiterating, the cell and gene therapy sector has been experiencing “whiplash – again which becomes a recurring event or an accident”.

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.