September 29, 2021 5:51pm

The Biostage (BSTG) Chronicles: the “pump/promote” didn’t work as pricing dropped -$0.73 with 1,275 shares traded as the Sword of Damocles” overhangs as insurance company drops any coverage and legal fee reimbursement for terminal death suit.

Pre-open indication results: 2 Hits and 4 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 UP +90.73 points (+0.26%); the S&P closed up +6.83 points (+0.16%) while the Nasdaq closed DOWN -34.24 points (-0.24%)

 

Henry’omics:

Indexes were spit on Wednesday as sentiment continues to be racked by electronic trading versus investors.

The Dow is down -2.6% and S&P -3.5%, respectively and the Nasdaq is down more than 4.5% for September.

 

News: Editas Medicine (EDIT) CRISPR-based treatment led to meaningful improvements for one patient with a blindness-causing genetic disorder, but EDIT stock tumbled.

  • This was the first data on EDIT treatment, known as EDIT-101. EDIT tested a midsize dose of EDIT-101 in four patients with Leber congenital amaurosis 10. One patient showed improvements in functional vision through six months. Another patient was considered "stable" through three months.
  • But the results fell short on one measure of an experimental treatment from ProQR Therapeutics. The company is working on an RNA-based treatment for the same blindness-causing disorder. Patients who received ProQR's drug showed a stronger improvement on a measure of "best corrected visual acuity."

 

Economic Data Docket: Investors were also watching debates around the debt ceiling and government spending in Washington.

  • Pending home sales rose 8.1% in August, according to the National Association of Realtors, well above the 1.2% expected by economists.

 

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

  • Wednesday opened positive at 25/6, 3 flats and 1 acquired, flipped negative at the mid-day at 410/28 and 1 acquired, ending with a negative close of 6/28 and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “RegMed Investors’ (RMi) pre-open: a liquid situation. Caution as Thursday ends September and Q3.” … https://www.regmedinvestors.com/articles/12116  

 

Pre-open indication results: 2 Hits: < Biostage (BSTG -$0.72), Alnylam Pharmaceuticals (ALNY +$0.37) and 4 MISS < CRISP Therapeutics (CRSP -$1.95), Editas Medicine (EDIT -$9.95), Global Blood Therapeutics (GBT -$0.75), Solid Biosciences (SLDB -$0.07)

 

The Biostage (BSTG) Chronicles: “wrongful death law suit, insurance claim denied” … https://www.regmedinvestors.com/articles/12110  - negligence? <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 2 of the 6-upside having higher than the 3-month average volume with INCREASED volume of 8 of 28-downside having higher than the 3-month average volume;

 

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

  • The “pump/promote” is back …

Wednesday close down -$0.72 with 1,273 shares traded after Tuesday closed up +$0.48 at $3.74 with 1,236 shares traded, Monday also closed flat with 135 shares traded, Friday closed flat with 62 shares traded, Thursday closed up +$0.06 with 839 shares traded and last Wednesday closed down -$0.45 with 3,833 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 – who is paying – investors to protect malfeasant?

 

There are clear winners and losers

Jumping with share pricing momentum (6 of 6):

  • ReNeuron (RENE.L +$1.50 after Tuesday’s -$1.50 and Monday’s -$1.00),
  • Alnylam Pharmaceuticals (ALNY +$0.37 after Tuesday’s -$16.77 and Monday’s+$6.45)
  • AxoGen (AXGN +$0.34)
  • MiMedx (MDXG +$0.17)
  • Vericel (VCEL +$0.05)
  • Chinook Therapeutics (KDNY +$0.03)

Hammered in today’s market (10 of 28):

  • Editas Medicine (EDIT -$9.95 after Tuesday’s -$5.39 and Monday’s -$0.87)
  • CRISPR Therapeutics (CRSP -$1.95 after Tuesday’s -$5.11 and Monday’s +$0.83),
  • Intellia Therapeutics (NTLA -$8.17 after Monday’s -$1.56)
  • Regenxbio (RGNX -$1.39)
  • Fate Therapeutics (FATE -$0.99 after Tuesday’s -$3.57 and Monday’s -$0.49)
  • Ultragenyx (RARE -$0.88 after Tuesday’s -$1.66 and Monday’s -$6.45),
  • Sage Therapeutics (SAGE -$0.84 after Tuesday’s -$1.57 and Monday’s +$1.44),
  • uniQure NV (QURE -$0.81)
  • Ionis Pharmaceuticals (IONS -$0.78 after Tuesday’s -$1.51 and Monday’s -$0.33),
  • Global Blood Therapeutics (GBT -$0.75 after Tuesday’s +$0.33 and Monday’s +$0.65),

Closing:

  • 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Wednesday the IBB closed down -0.44% and XBI closed down -1.65%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.69 points or -2.97% at 22.56

 

September, the third month of Q3/21:

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

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: as I had stated yesterday,” Many of us, investors were left wondering whether the declines were the start of a broader sector pullback or just another blip.

It’s frustrating to feel sentiment problems not getting better, in fact they are probably getting worse. It’s very difficult to say how big the end of the month and quarter will be and how long the downdraft will last.

Investors were still mulling implications on-going political antics, inflation worries, bond yields, infrastructure arguments, questions of drug pricing and patterns while military patterns of behavior re the debacle of the Afghanistan withdrawal i.e., surrender “bites” 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.