October 19, 2021 4:49pm
Although low volume permeates share pricing
News: Sage Therapeutics (SAGE) and Biogen (BIIB) plan to submit a New Drug Application (NDA) to the U.S. FDA for zuranolone, a two-week, once-daily therapeutic in the 2H/22 for the treatment of major depressive disorder (MDD) and an additional filing for postpartum depression (PPD) is anticipated in the 1H/23.
Pre-open indication results: 6 Hits and 1 MISS
My version of the session’s “indications” is about what you need to know; it’s what did happen after the opening, mid-day and to the close
An objective, fact and numbers-based narrative – check the numbers!
The Dow closed UP +198.70 points (+0.56%); the S&P closed UP +33.17 points (+0.74%) while the Nasdaq closed UP +107.28 points (+0.71%)
Henry’omics:
U.S. stock indexes gained on Tuesday …
Small caps were managing to move higher, though gains narrowed. The Russell 2000 was up about 0.3%
Interesting note: Johnson & Johnson (JNJ) had been the strongest component. It remained up +$3.75 or 2.34% in healthy volume. It was given a shot in the arm after serving up Q3 earnings that topped estimates. While it fell short on revenue targets, this was offset by the fact it raised its full-year outlook. JNJ reported adjusted earnings of $2.60 per share on sales of $23.3 billion. On average, analysts polled by FactSet expected the company to earn $2.35 per share on $23.64 billion in sales. <IBD>
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what’s happening …
- Tuesday opened positive at 23/10, 1 flat and 1 acquired, stayed positive at the mid-day at 28/4, 2 flats and 1 acquired, ending with a positive close of 26/6, 2 flats and 1 acquired;
- Monday opened negative at 6/27, 1 flat and 1 acquired, stayed negative at the mid-day at 10/23, 1 flat and 1 acquired, ending with a negative close of 13/21 and 1 acquired;
RegMed Investors’ (RMi) pre-open: “sifting through Monday’s share pricing rubble. There must be some oversold gems” … https://www.regmedinvestors.com/articles/12144
Pre-open indication results: 6 Hits: <Biostage (BSTG -$0.00 with 1,488 shares traded); BUY: bluebird bio (BLUE +$0.46), CRISPR Therapeutics (CRSP +$4.05), Intellia Therapeutics (NTLA +$1.85), Mesoblast (MESO +$0.41); SELL into Strength: Vericel (VCEL +$0.55) and 1 MISS <SELL: Ionis Pharmaceuticals (IONS +$1.03)>
Key Metric - volume:
- Sector volume was LOW with 5 of the 25-upside having higher than the 3-month average volume with INCREASED volume of 2 of 7-downside having higher than the 3-month average volume;
Largest downside volume:
- Ionis Pharmaceuticals (IONS +$0.99 – 1.788 m shares traded)
There are clear winners and losers
Jumping with share pricing momentum (10 of 25):
- CRISPR Therapeutics (CRSP +$4.05 after Monday’s -$0.79),
- Alnylam Pharmaceuticals (ALNY +$2.69 after Monday’s -$4.66),
- Intellia Therapeutics (NTLA +$1.85 after Monday’s +$0.34),
- Fate Therapeutics (FATE +$1.06 after Monday’s -$1.13),
- Ionis Pharmaceuticals (IONS +$1.03 after Monday’s -$4.85),
- Editas Medicine (EDIT +$0.97 after Monday’s +$0.26),
- AxoGen (AXGN +$0.59 after Monday’s +$0.13),
- Vericel (VCEL +$0.55 after Monday’s +$1.26),
- bluebird bio (BLUE +$0.46 after Monday’s +$0.13),
- BioLife Solutions (BLFS +$0.46 after Monday’s +$0.68),
Hammered in today’s market (6 of 6):
- Sage Therapeutics (SAGE -$3.78 after Monday’s -$-0.87),
- Regenxbio (RGNX -$0.68 after Monday’s -$0.57),
- Global Blood Therapeutics (GBT -$0.40 after Monday’s +$0.19),
- Bellicum Pharmaceuticals (BLCM -$0.25),
- Sangamo Therapeutics (SGMO -$0.03),
- Caladrius Biosciences (CLBS -$0.03),
Closing Flat:
- 2 – Biostage (BSTG), ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired
Stats:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB closed up +1.08% and XBI closed up +0.99%
- Monday, the IBB closed down -0.85% and XBI closed down -2.09%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Tuesday was down -0.68 points or -4.17% at 15.63
- Monday was up +0.01 points or +0.06% at 16.31
October, the first month of Q3/21:
Tuesday closed positive with 26 advancers, 6 decliners, 2 flats and 1 acquired
Monday (10/18) closed negative with 13 advancers, 21 decliners and 1 acquired
The BOTTOM LINE: Big pharma healthcare sectors has investors grinning on solid Q3 reports even as some worry that I our universe of stem, cell and gene therapy releases is too early to consider celebration.
We'll be seeing the results in the next couple of weeks as Alnylam Pharmaceuticals (ALNY) on 10/28 followed by Athersys (ATHX) on 11/15 – so far.
Once again, a large number of stem, cell and gene therapy stocks showed strength with lackluster moves meaning – low volume.
There are a lot of headwinds out there as we embark on corporate earnings, and traders will be looking at “runways”, clinical advancements and any indications of guidance.
Reiterating, “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.
