March 7, 2022 5:03pm
There’s very little buying of dips, as sector experiences the implausible of BLUE and the gene editors
Pre-open indications: 5 Hits and 7 Miss
News: bluebird bio’s (BLUE -$0.55) CFO Gina Consylman resigned amid growing concerns the company needs to raise additional money to survive more than a year. the troubled developer of gene therapies, has warned that cash is running short, creating “substantial doubt” about its ability to remain in business after this year. The effort will now be led by Jason Cole, who will take over as CFO, he has been serving as chief business officer since last November.
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.
The Bottom Line says it all succinctly …
Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read the facts supported by real numbers?
If I have learned one thing as a former research analyst, venture and public fund investor now a journalist; it is that your life and your bank account are largely tied to your knowledge of price movements and questioning pricing targets.
The Dow closed DOWN -797.42 points (-2.37%); the S&P closed DOWN – 127.78 points (-2.95%) while the Nasdaq closed DOWN -482.48 points (-3.62%)
Henry’omics:
The Dow, the S&P and the Nasdaq sold off Monday, as Russia's assault on Ukraine continued. Treasury yields jumped, while U.S. oil prices briefly surged above $130 a barrel to hit their highest level since 2008.
A telling quote, “Wall Street is already adjusting for the slower growth. Top strategists from Citi to UBS, Yardeni Research and Evercore ISI have lowered their U.S. equity outlook amid the geopolitical tensions. Long-time market bull Ed Yardeni has turned into one of the biggest bears on Wall Street, seeing the S&P 500 suffer a 16% decline in 2022 to end at 4,000.” <CNBC>
52-week lows:
- bluebird bio (BLUE) a low of $4.71
- Mesoblast (MESO) a low of $3.61
- Cellectis SA (CLLS) a low of $3.46
- Solid Biosciences (SLDB) a low of $0.74
RegMed Investors’ (RMi) pre-open: “risk-on is back in play. Could it be a positive signal for some indications of our universe of cell and gene therapy sector equities?” … https://www.regmedinvestors.com/articles/12329
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Monday opened negative at 8 up/27 downs, 2 flats, stayed negative at the mid-day at 14/24, ending with a negative close of 11/26 and 1 flat (PGEN);
Pre-open Indications: 5 Hits < Agenus (AGEN +$0.01), Homology Medicine (FIXX +$0.08), bluebird Bio (BLUE -$0.55), Beam Therapeutics (BEAM -$1.24), Intellia Therapeutics (NTLA -$2.18)> 7 Miss < Cellectis SA (CLLS -$0.08), Fate Therapeutics (FATE -$0.61), Ionis Pharmaceuticals (IONS -$0.13), MiMedx (MDXG -$0.04), Biostage (BSTG +$0.29), CRISPR Therapeutics (CRSP +$2.01), Editas Medicine (EDIT +$0.06),
RegMed/Cell and Gene Therapy Earnings Scorecard Q4/21 and FY21 Results … https://www.regmedinvestors.com/articles/11628 … (BLUE) added
The Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works on Monday closing +$0.29 with 399 shares traded after Friday closing down -$0.44 with 1,303 shares traded after Thursday as 487 shares traded moving the share price +$0.25 after Wednesday as 649 shares appeared pushing the share price +$0.34 after Tuesday as 3,271 shares appear raising the share price +$0.59 to have it close -$0.04 with an additional 278 shares traded after last Monday with 687 shares traded +$0.37 just before the close
- WHO is BUYING these shares of a company with a 3-year-old IND, NO clinical trial initiation, a terminal death lawsuit overhang and a dwindling cash position?
- 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.
- On what basis is an offering possible?
Key Metrics:
- Monday - Sector volume was LOW with 2 of the 11-upside having higher than the 3-month average volume with LOW volume of 5 of 26-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB closed down -1.59 and the XBI closed down -0.17%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was up +4.47 points or +13.98% at 36.45
Jumping with share pricing momentum (11 of 11):
- CRISPR Therapeutics (CRSP +$2.01 after Friday’s -$1.00),
- Global Blood Therapeutics (GBT+$0.35 after Friday’s -$0.96),
- Biostage (BSTG +$0.29 after Friday’s -$0.44),
- Voyager Therapeutics (VYGR +$0.23),
- Ultragenyx (RARE +$0.22 after Friday’s -$1.30),
- Caribou Biosciences (CRBU +$0.12 after Friday’s +$0.15),
- Chinook Therapeutics (KDNY +$0.09),
- Homology Medicine (FIXX +$0.08),
- Sangamo Therapeutics (SGMO +$0.07),
- Adverum Biotechnologies (SGMO +$0.04),
Hammered in today’s market (11 of 26):
- Intellia Therapeutics (NTLA -$2.18 after Friday’s -$5.93),
- Vericel (VCEL -$1.76 after Friday’s -$1.35),
- Alnylam Pharmaceuticals (ALNY -$1.44),
- Beam Therapeutics (BEAM -$1.24 after Friday’s -$3.75)
- ReNeuron (RENE.L -$1.00),
- Fate Therapeutics (FATE -$0.61),
- bluebird bio (BLUE -$0.55),
- BioLife Solutions (BLFS -$0.36),
- AxoGen (AXGN -$0.340,
- uniQure NV (QURE -$0.24 after Friday’s -$1.12),
- Pluristem (PSTI -$0.23 after Friday’s +$0.18),
March, Q1/2022:
- Monday closed negative with 11 incliners, 26 decliners and 1 flat (PGEN)
The BOTTOM LINE: The cell and gene therapy sector extended declines on Monday as sentiment expired as the former blockbuster bluebird bio (BLUE) seems to be coming apart at the seams.
I had thought that February was going to mark the peak of declines. However, with respect to bluebird bio (BLUE) has lost more than 90% of its value over the past four years amid a series of delays, clinical setbacks and commercial struggles. Shares once worth more than $150 in March 2018 now trade at less than $5 apiece and fell another 13% on Monday following the company's financial warning. CFO loss headline reinforces downward pressures.
Adding to the downside pressures is the patent issue post the U.S. patent office ruled the Broad Institute patent was “more” valid than UC Berkely.
(Read more … https://www.regmedinvestors.com/articles/12320) in the gene editing “space” as BEAM, NTLA and EDIT are streaming downward.
Look at the VIX, the fear gauge; it is at 34.55 after Friday’s 31.98 after Thursday’s 30.62 - meaning there's a very high level of uncertainty … as the cell and gene therapy sector’s volume remains LOW.
Remember the adage, “It takes two to make a market"; that’s sellers and buyers.
I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”; risk to growth now takes center stage for how long separation of sentiment lasts and how deep the oversold dive.
Q4 and end-of-year earnings are “gamy” than even I thought.
Earnings’ reporting coming:
· Athersys (ATHX), Tuesday, 3/15
· Cellectis SA (CLLS) Thursday, 3/22
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.
