June 30, 2021 5:55pm

Gene editors drive the upside

Pre-open indications: 9 HITs and 0 MISS

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

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The Dow closed UP +210.22 points (+0.61%); the S&P closed UP +5.70 points (+0.13%) while the Nasdaq closed DOWN -24.38 points (-0.17%)

 

Henry’omics:

Indexes were mixed with the Nasdaq taking the fall as the 1sthalf, June and Q2 end.

All three (3) indexes posted their fifth(5th) consecutive quarterly gains, with the S&P rising 8.2%, the Nasdaq advancing 9.5% and the Dow rising 4.6%. The S&P 500 registered its second-best first-half performance since 1998, rising 14.5%.

 

Data Docket: Pending home sales jumped in May to their highest level since 2005. However, mortgage demand fell last week, according to the Mortgage Bankers Association, with high prices and low supply appearing to squeeze out some potential buyers. The readings came after a jump in home prices, reflected in the S&P CoreLogic Case-Shiller index, spurred homebuilder stocks higher on Tuesday.

  • Payroll firm ADP reported that private payrolls rose 692,000 in June, beating expectations. However, the firm’s May number was revised down.

 

RegMed Investors’ (RMi) pre-open: “last trading day of 1st half, June and Q2” … https://www.regmedinvestors.com/articles/11979

 

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

  • Wednesday was positive at the mid-day at 19/12, 3 flats and 1 acquired, closing barely negative at 16/17, 1 flat and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump” is STILL promoting on Wednesday -$0.005 (was -$0.11) to $1.25 with 3,241 shares traded after 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, Friday’s 1,600 shares traded as the stock dropped -$0.10 to $1.25, Thursday with 1,920 shares traded to “putt” the share price at $0.10 to $1.35 and last Wednesday’s share price popping and then dropping -$0.05 to $1.25 with 11,915 shares traded … 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: 9 HITs < Biostage (BSTG -$0.005); SELL into STRENGTH:  Ionis Pharmaceuticals (IONS +0.34), Intellia Therapeutics (NTLA +$10.30), Editas Medicine (EDIT +$10.54), Cellectis SA (CLLS -$0.38), CRISPR Therapeutics (CRSP +$11.40); BUY: Global Blood Therapeutics (GBT +$2.56), Alnylam Pharmaceuticals (ALNY +$3.65); SELL:  Vericel (VCEL -$5.27) and 0 MISS

 

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:

  • CRISPR Therapeutics (CRSP), Editas Medicine (EDIT) – another again, Intellia Therapeutics (NTLA) – another again plus one, Alnylam Pharmaceuticals (ALNY), Global Blood therapeutics (GBT) to name 5 of the 16 inclining of the 35 covered

Hammered in today’s market:

  • Vericel (VCEL) - again, Fate Therapeutics (FATE), Ultragenyx (RARE), uniQure NV (QURE), Cellectis SA (CLLS) to name 5 of the 17 declining of the 35 covered

 

Key metrics:

  • Sector volume was HIGH with 7 of the 16-upside having higher than the 3-month average volume with LOW volume of 4 of 17-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 16-upside were +0.25% (VSTM) to +22.86% (EDIT) while the 17-downside ranges from -0.08% (MDXG) to -9.12% (VCEL);

 

Wednesday’s (10 of 16) incliners:

  • CRISPR Therapeutics (CRSP +$11.40 after Tuesday’s -$1.14 and Monday’s +$9.11);
  • Editas Medicine (EDIT +$10.54 after Tuesday’s +$2.11 and Monday’s +$2.11);
  • Intellia therapeutics (NTLA +$10.30 after Tuesday’s +$18.18 and Monday’s +$44.60);
  • Alnylam Pharmaceuticals (ALNY +$3.65);
  • Global Blood Therapeutics (GBT +$2.56 after Tuesday’s -$0.73 and Monday’s -$3.25);
  • bluebird bio (BLUE +$1.90 after Tuesday’s -$1.09);
  • ReNeuron (RENE.L +$1.50 after Tuesday’s -$3.50 and Monday’s +$0.50);
  • BioLife Solutions (BLFS +$1.01 after Tuesday’s -$0.93 and Monday’s -$0.19);
  • Sage Therapeutics (SAGE +$0.43 after Tuesday’s -$0.82 and Monday’s -$1.14);
  • Regenxbio (RGNX +$0.41 after Tuesday’s -$0.54 and Monday’s -$1.50);

Wednesday’s (10 of 17) decliners:

  • Vericel (VCEL -$5.27 after Tuesday’s -$10.04 and Monday’s +$0.41);
  • Fate Therapeutics (FATE -$2.37 after Tuesday’s +$0.04 and Monday’s +$4.57);
  • Ultragenyx (RARE -$0.94);
  • uniQure NV (QURE -$0.39);
  • Cellectis SA (CLLS -$0.38);
  • AxoGen (AXGN -$0.29);
  • Mesoblast (MESO -$0.23);
  • Bellicum Pharmaceuticals (BLCM -$0.130;
  • Chinook Therapeutics (KDNY -$0.12 after Tuesday’s -$0.97 and Monday’s -$0.38);
  • Applied Genetic Technologies (AGTC -$0.09);

Closing flat 1 – Caladrius Biosciences (CLBS) and 1 -Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Wednesday, the IBB closed up +0.03% and XBI closed down -0.25%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.19 points or -1.19% at 15.83

Upside volume: 

  • Wednesday: 7 out of the 16-upside had higher than the 3-month average volume;

Downside volume:

  • Wednesday: 4 out of the 17-downside had higher than the 3-month average volume;

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

  • Wednesday’s percentage (%) of the 16-upside were +0.25% (VSTM) to +22.86% (EDIT) while the 17-downside ranges from -0.08% (MDXG) to -9.12% (VCEL);

 

June, third month of Q2/21:

Wednesday negative with 16 advancers, 17 decliners, 1 flat and 1 acquired

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

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

Friday closed positive with 18 advancers, 13 decliners, 3 flat and 1 acquired

Thursday closed positive with 28 advancers, 5 decliners, 1 flat and 1 acquired

Wednesday positive with 25 advancers, 9 decliners and 1 acquired

Tuesday closed negative with 9 advancers, 25 decliners and 1 acquired

Monday closed positive with 16 advancers, 15 decliners, 3 flats and 1 acquired

Friday closed negative with 15 advancers, 18 decliners, 1 flat and 1 acquired

Thursday closed positive with 23 advancers, 10 decliners, 1 flat and 1 acquired

Wednesday negative with 10 advancers, 22 decliners, 2 flats and 1 acquired

Tuesday closed negative with 5 advancers, 28 decliners, 1 flat and 1 acquired

Monday closed positive with 18 advancers, 14 decliners, 2 flats and 1 acquired

Friday closed positive with 21 advancers, 12 decliners, 1 flat and 1 acquired

Thursday closed positive with 26 advancers, 7 decliners, 1 flat and 1 acquired

Wednesday positive with 22 advancers, 12 decliners and 1 acquired

Tuesday closed positive with 25 advancers, 9 decliners and 1 acquired

Monday closed positive with 30 advancers, 4 decliners and 1 acquired

Friday closed positive with 25 advancers, 8 decliners, 1 flat and 1 acquired

Thursday closed negative with 7 advancers, 26 decliners, 1 flat and 1 acquired

Wednesday closed negative with 10 advancers, 23 decliners, 1 flat and 1 acquired

Tuesday closed positive with 17 advancers, 16 decliners, 1 flat and 1 acquired

 

 

The BOTTOM LINE: The cell and gene therapy sector "got" drained during 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.