February 17, 2022 7:18am
Experiencing few highs and mostly lows of the cell and gene therapy sector’s equities while many companies still haven’t recovered from last year
Pre-open indications: 4 BUYs, 3 SELLs and 1 Pimp/Pump/Promote
What I provide is an intelligence daily. RMi outlines a daily bell weather of “indications” about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session.
Earnings Reporting Dates: see below
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Only the facts … I ask questions and note the indications
Dow futures are DOWN -0.42% (-147 points), S&P futures are DOWN -0.49% (-22 points) and NASDAQ futures are DOWN -0.62% (-91 points)
Stock futures are diving in pre-market trading Thursday after US intelligence officials said that Russia’s claims that it is withdrawing troops along its border with Ukraine are false,
European markets are lower still exhibiting anxiety and jitters over eastern Europe
Asia-Pacific markets were mixed overnight as investors monitored the geopolitical situation.
Henry’omics:
Yesterday, the major stock averages came off their lows after the release of minutes from the Fed’s January meeting. The minutes showed the Fed is prepared to hike interest rates and reduce its balance sheet … soon.
Defining the risks of “our” cell and gene therapy universe: Sage Therapeutics’ (SAGE) share pricing “got whacked”, as the market value fell from $9.7 billion in 2019, has dropped to $2.1 billion on Wednesday. SAGE’s Biogen (BIIB)-partnered depression drug looks approvable to analysts; though, it’s alleged that long-term effectiveness might not be the multi-billion-dollar blockbuster analysts once thought it would be.
Economic Data Docket: Weekly jobless claims numbers which are expected to fall back from 223,000 to 217,000, with continuing claims falling back to 1.6 million.
If you didn’t remember what happen at Wednesday’s close, you won’t be prepared for today’s session
RegMed Investors’ (RMi) closing bell: “the sectors back to its losing way” … https://www.regmedinvestors.com/articles/12304
Ebb and flow –
- February stats: 7 negative and 5 positive closes
- January stats: 1 holiday, 1 neutral, 13 negative and 6 positive closes
RegMed/Cell and Gene Therapy Earnings Scorecard Q4/21 and FY21 Results … https://www.regmedinvestors.com/articles/11628
Companies in my headlights – It’s your decision; I provide ideas and context:
Pre-open share pricing indications:
BUY:
BioLife Solutions (BLFS) +$0.14 or +0.55%,
bluebird bio (BLUE) +$0.14 or +2.16%,
Chinook Therapeutics (KDNY) +0.27 or +2.12%,
Global Blood therapeutics (GBT) +$0.16 or +0.46%
SELL:
Intellia Therapeutics (NTLA) -$0.86 or -0.90%,
Pluristem (PSTI) -$0.03 or -1.70%
Voyager Therapeutics (VYGR) -$0.04 or -1.09%
Pimp/Pump and Promote:
Biostage (OTCQB: BSTG) closed down Wednesday -$0.06 (had been -$0.98) with 420 shares traded after Tuesday’s flat with 200 shares traded after Monday’s flat with 1,899 shares traded after last …
Friday’s -$0.02 with 1,739 shares traded after Thursday’s +$0.60 to $4.58 with 2,841 shares traded, Wednesday’s -$0.61 with 4,030 shares traded, Tuesday’s +$0.05 to $4.59 with 1,293 shares traded and Monday’s +$0.55 with 2,311 shares traded,
The previous Friday’s +$0.22 with 305 shares traded, Thursday’s flat (-$0.00) with 3 shares traded, Wednesday’s -$0.53 with 502 shares traded, Tuesday’s +$0.40 with 1,088 shares traded, Monday’s flat with 11 shares traded,
And the preceding Friday’s +$0.05 to $3.90 with 3,362 shares traded, Thursday’s +$0.24 to $3.85 with 10,073 shares traded.
- WHO is BUYING these shares of a company with a 2-year-old IND, NO clinical trial initiation, a terminal death lawsuit overhang and a dwindling cash position?
- Also, by use of the pump/promote process; is BSTG preparing to register the outstanding private placement (PP) shares for a reverse to initiate an offering- they’re NOT going ANYWHERE without a cash inflow.
The BOTTOM LINE: I continue my skittishness regarding earnings’ reporting and the volatility in trading that usually precedes and follows releases.
Reiterating, “the cell and gene therapy sector’s relative valuation metrics suggest earnings reports are about to hit and I believe, hard.”
Investors have to recognize what kind of market we are in – VOLATILE with LOW VOLUME. Which gives us reasons to be cautious.
Biotechnology companies haven’t recovered from last year, one of the worst on record for the sector. The equal-weighted SPDR S&P Biotech ETF or XBI has already pulled back 46% from a 2021 record. A lack of big buyout offers has also tamped down the sector. <Bloomberg>
Earnings’ reporting:
- AxoGen AXGN) – Tuesday, 2/22
- Global Blood Therapeutics (GBT) – Wednesday, 2/23
- Sage Therapeutics (SAGE), Thursday, 2/24
- Ionis Pharmaceuticals (IONS) - Thursday, 2/24
- Editas Medicine (EDIT) - Thursday, 2/24
- Fate therapeutics, Monday, 2/28
- Athersys (ATHX), Tuesday, 3/15
Investors should focus on forward-looking guidance, last year’s operating losses i.e., spending and cash positions or runways!
I am NOT changing my position, “Brace for more choppiness as we move further into the month and the beginning of Q1/22 waiting for Q4 and FY21 numbers”.
RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.
WHY do I keep reporting on Biostage (BSTG): I WAS there to experience what occurred and saw the decay of transparency and more; it takes courage, resolve and patience to stay the course of asking the questions without response!
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 their investment objectives.
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.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in FATE, CRS, securities referred to in this publication.
