June 29, 2021 5:13pm

The cell and gene therapy sector “puked-out” many upsides after I stated “cutting some positions for profit before it’s taken from your portfolio”

Pre-open indications: 7 HITs and 2 MISS

News: Vericel (VCEL -$10.04 or -14.81% to $57.77) development partner MediWound received a rejection letter from the FDA for the biologics license application (BLA) for the two companies' NexoBrid in the BLA's current form.

My comments try to distinguish the temporary from real pricing digression or progress.

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The Dow closed UP +9.02 points (+0.03%); the S&P closed UP +1.19 points (+0.03%) while the Nasdaq closed UP +27.83 points (+0.19%)

 

Henry’omics:

Indexes barely made it up during the session …

The Nasdaq added about 0.2% for its own record while the stem, cell and gene therapy sector suffered a slip-and-fall.

With the market about to enter the final trading day (tomorrow, Wednesday) of June and Q2, the S&P 500 is on track to register its fifth straight month of gains, the Nasdaq is pacing for its seventh positive month in the last eight while the Dow is in the red for the month, and on track to snap a four-month winning streak.

 

RegMed Investors’ (RMi) pre-open: “Q2 is coming to a close and records need to be broken as a matter of course or was it cause?”https://www.regmedinvestors.com/articles/11974

 

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

  • Tuesday opened negative at 12/21, 1 flat and 1 acquired, stayed negative at the mid-day to 5/28, 1 flat and 1 acquired, closing negative at 6/28 and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump” is STILL TRYING to promote again on Tuesday as 1,860 shares “appeared” as the share price was sinking -$0.07 to lift it +$0.03 after Monday’s 1,177 shares trading and the share price dripped -$0.02 to $1.23 after Friday’s 1,600 shares traded as the stock dropped -$0.10 to $1.25 after Thursday with 1,920 shares traded to “putt” the share price at $0.10 to $1.35, Wednesday’s share price popping and then dropping -$0.05 to $1.25 with 11,915 shares traded and last Tuesday with the share price INFLATED +$0.09 with 4,779 shares trading … WHO is buying this “zombie” as IF we didn’t know after yet another warrant execution and ever-increasing UN-REGIGISTERED share DILUTION and .. the potential THREAT of de-listing if the share price was to trade without the “pump” below $1.00?

 

Pre-open Indications: 7 HITs <SELL: Cellectis SA (CLLS -$0.41), Alnylam Pharmaceuticals (ALNY -$0.33); Homology Medicine (FIXX -$0.25); BUY: Ionis Pharmaceuticals (IONS +$0.58), SELL into STRENGTH: Vericel (VCEL -$9.99), Editas Medicine (EDIT +$2.11), CRISPR Therapeutics -$1.14) and 2 MISS < Biostage (BSTG +$0.03), Intellia Therapeutics (NTLA +$18.18),

 

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

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Intellia Therapeutics (NTLA) – another again, Editas Medicine (EDIT) – again, Ionis Pharmaceuticals (IONS), uniQure NV (QURE), MiMedx (MDXG) to name 5 of the 6 inclining of the 35 covered

Hammered in today’s market:

  • Vericel (VCEL), ReNeuron (RENE.L), bluebird bio (BLUE), Sage Therapeutics (SAGE) - again, Chinook therapeutics (KDNY) to name 5 of the 28 declining of the 35 covered

 

Key metrics:

  • Sector volume was HIGH with 4 of the 6-upside having higher than the 3-month average volume with LOW volume of 7 of 28-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 6-upside were +0.04% (FATE) to +13.63% (NTLA) while the 28-downside ranges from -0.11% (RARE) to -14.81% (VCEL);

 

Tuesday’s (6 of 6) incliners:

  • Intellia therapeutics (NTLA +$18.18 after Monday’s +$44.60);
  • Editas Medicine (EDIT +$2.11 after Monday’s +$2.11);
  • Ionis Pharmaceuticals (IONS +$0.58 after Monday’s +$0.04);
  • MiMedx (MDXG +$0.16);
  • Fate Therapeutics (FATE +$0.04 after Monday’s +$4.57);
  • Biostage (BSTG +$0.03 after Monday’s -$0.02);

Tuesday’s (10 of 28) decliners:

  • Vericel (VCEL -$10.04 after Monday’s +$0.41);
  • ReNeuron (RENE.L -$3.50 after Monday’s +$0.50);
  • CRISPR Therapeutics (CRSP -$1.14 after Monday’s +$9.11);
  • bluebird bio (BLUE -$1.09);
  • Chinook Therapeutics (KDNY -$0.97 after Monday’s -$0.38);
  • BioLife Solutions (BLFS -$0.93 after Monday’s -$0.19);
  • Sage Therapeutics (SAGE -$0.82 after Monday’s -$1.14);
  • Global Blood Therapeutics (GBT -$0.73 after Monday’s -$3.25);
  • Regenxbio (RGNX -$0.54 after Monday’s -$1.50);
  • Sangamo Therapeutics (SGMO -$0.43);

Closing 1 -Stemline Therapeutics (STML – acquired)

 

Stats:

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

  • Tuesday, the IBB closed up +0.14% and XBI closed down -1.53%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.26 points or +1.65% at 16.02

Upside volume: weak

  • Tuesday: 4 out of the 6-upside had higher than the 3-month average volume;

Downside volume:

  • Tuesday: 7 out of the 28-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: price versus percentage …

  • Tuesday’s percentage (%) of the 6-upside were +0.04% (FATE) to +13.63% (NTLA) while the 28-downside ranges from -0.11% (RARE) to -14.81% (VCEL);

 

June, third month of Q2/21:

Tuesday closed negative with 6 advancers, 28 decliners and 1 acquired

Monday closed positive with 18 advancers, 15 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: The drip became a deluge as the expected decline drained the session.

As I had stated, “It's end of the quarter and investors may want to take some profits and rotate out of some stem, cell and gene therapy sector equities, which has seen some multiple session highs.”

Don’t forget there is a long holiday weekend coming (and my birthday) – many will bolt and possibly equities as well?

Reiterating, “I am STILL hearing and seeing “buy the rumor and sell the news” in my cell and gene therapy sector.

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!”

 

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.

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.