September 28, 2021 4:53pm

As market and sector history repeats its slide to the downside

News: Ziopharm Oncology (ZIOP) takes a big hit <read more>. Ultragenyx Pharmaceutical (RARE) with partner GeneTx Biotherapeutics LLC, a privately-held biotechnology company, announced that the FDA has removed the clinical hold from their P1/2 study evaluating GTX-102 for the treatment of Angelman Syndrome, a rare neurogenetic disorder.

The Biostage (BSTG) Chronicles: the “pump/promote” is back …as the Sword of Damocles” hangs overhead

Pre-open indication results: 6 Hits and 1 MISS

Who else is tracking a broad representative index of cell and gene therapy equities – the facts are supported by real numbers?

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”


The Dow closed DOWN -569.38 points (-1.63%); the S&P closed DOWN -90.48 points (-2.04%) while the Nasdaq closed DOWN -423.29 points (-2.83%)

 

Henry’omics:

All three (3) indexes fell on Tuesday, with stem, cell and gene therapy sector were dragging down as the Nasdaq and the broader markets declined as Treasury yields traded near three (3) month highs.

The market’s been steadily coming around to the reality that bond rate yields (highest since June) were up relative to equities.

 

Local Company News, stuff happens: Ziopharm Oncology (ZIOP) has cut 60 positions — more than half its workforce — in an effort to extend its cash runway.

  • ZIOP recently delayed a key clinical trial in its CAR-T cell therapy program and took on $50 million in debt from Silicon Valley Bank.
  • ZIOP shares were down nearly -$0.225 or -10.1% to $1.895 on Tuesday. Stock prices were already low at Monday’s close, trading at just $2.12 each.
  • In a statement on Monday, ZIOP said it expected to restart its delayed trial in early 2022 after ramping up its own manufacturing capacity, with the expectation that ZIOP will manufacture its own drug candidates going forward.
  • ZIOP blames the delay on "inadequate resources at its contract manufacturer." ZIOP says it has sufficient cash runway to bring it through 2023.

 

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

  • Tuesday opened negative at 5/26, 3 flats and 1 acquired, stayed negative at the mid-day at 5/28, 1 flat and 1 acquired, ending with a negative close of 3/31 and 1 acquired;
  • Monday opened positive at 18/15, 1 flat and 1 acquired, stayed positive at the mid-day at 19/14, 1 flat and 1 acquired, ending with a positive close of 18/15, 1 flat and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: ““Sector rotation?” … https://www.regmedinvestors.com/articles/12114  

 

Pre-open indication results: 6 Hits: < Alnylam Pharmaceuticals (ALNY -$16.77), CRISP Therapeutics (CRSP -$5.11), Editas Medicine (EDIT -$5.39), Intellia Therapeutics (NTLA -$8.17), Sage Therapeutics (SAGE -$1.87), Global Blood Therapeutics (GBT +$0.33)> and 1 MISS <Biostage (BSTG +$0.48)>

 

The Biostage (BSTG) Chronicles: “wrongful death law suit, insurance claim denied” … https://www.regmedinvestors.com/articles/12110  - additions <read newest version

 

Q2/21 Earnings releases … https://www.regmedinvestors.com/articles/11542  … to date:

  • Net Income: 3 and Net losses: 24

 

Key Metric - volume:

  • Sector volume was LOW with 1 of the 3-upside having higher than the 3-month average volume with INCREASED volume of 12 of 31-downside having higher than the 3-month average volume;

 

The Biostage (BSTG) Chronicles: wrongful death law suit, insurance claim denied” … https://www.regmedinvestors.com/articles/12110 - new additions 

  • The “pump/promote” is back …

Tuesday closed up +$0.48 at $3.74 with 1,236 shares traded after Monday also closed flat with 135 shares traded, Friday closed flat with 62 shares traded, Thursday closed up +$0.06 with 839 shares traded, Wednesday closed down -$0.45 with 3,833 shares traded and last Tuesday closed up +$0.25 with 654 shares traded and the previous Monday closed down -$0.26 to $3.40 with 563 shares traded.

  • WERE BSTG’s Q2 8-K and 10-Q filings AUDITED or UNAUDITED for investors?
  • Will legal fees to defend the terminal death suit going to bankrupt the company now, that costs will not be covered by insurance?
  • The largest issue was NOT providing the documents to the other attorneys as a sanction was put-on and then removed?
  • Should the D&O, company and office and board covered insurances <which were very high> about to jump even higher?

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Biostage (BSTG -$0.48 after Monday’s flat – “pumped”)
  • Global Blood Therapeutics (GBT +$0.33 after Monday’s +$0.65),
  • bluebird bio (BLUE +$0.27 after Monday’s +$0.89),

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY -$16.77 after Monday’s+$6.45)
  • Intellia Therapeutics (NTLA -$8.17 after Monday’s -$1.56)
  • Editas Medicine (EDIT -$5.39 after Monday’s -$0.87)
  • CRISPR Therapeutics (CRSP -$5.11 after Monday’s +$0.83),
  • Fate Therapeutics (FATE -$3.57 after Monday’s -$0.49)
  • Sage Therapeutics (SAGE -$1.57 after Monday’s +$1.44),
  • BioLife Solutions (BLFS -$1.83 after Monday’s -$2.73),
  • Ultragenyx (RARE -$1.66 after Monday’s -$6.45),
  • Ionis Pharmaceuticals (IONS -$1.51 after Monday’s -$0.33),
  • ReNeuron (RENE.L -$1.50 after Monday’s -$1.00),

Closing:

  • 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Tuesday the IBB closed down -3.21% and XBI closed down -3.16%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +4.41 points or +23.51% at 23.17

 

September, the third month of Q3/21:

Tuesday closed negative with 3 advancers, 31 decliners and 1 acquired

Monday (9/27) closed positive with 18 advancer, 15 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: Many of us, investors were left wondering whether the declines were the start of a broader sector pullback or just another blip.

Tuesday, sector stocks sensitivity to market flux dived as the Nasdaq indexes ended lower on Tuesday following Monday’s upside with low volume.

In talking to many investors – the overbought became the oversold with low volume – yesterday’s highs were the theme of today’s output.

Investors were still mulling implications on-going political antics and military patterns of behavior re the debacle of the Afghanistan withdrawal i.e., surrender. It’s going to “bite” and hard!

Sentiment has been capricious and languishing as the sector bounded to the downside.

The stem, cell and gene therapy sector is still seen as vulnerable to extreme moves in either direction, overbought and oversold categories as risk stimulates the susceptibility!

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!”

WHY do I keep analyzing Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What I provide is a trusted source of share pricing intelligence – it’s more than opinion, I deal in the facts and numbers that back them up.

 

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.