May 9, 2022 4:47pm
While non-existent confidence and withering investor sentiment created a “run” on the sector
Pre-open indications: 4 HITs and 5 MISS
Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read 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 -653.41 points (-1.99%); the S&P closed DOWN -132.05 points (-3.20%) while the Nasdaq closed DOWN -521.41 points (-4.29%)
Indexes continued to melt down after two (2) depressed sector sessions (Thursday and Friday) ... as higher U.S. Treasury yields hit growth stocks amid prospects of aggressive policy tightening; while investors grappled with fears of a sharp economic slowdown in China.
Volume rose on the Nasdaq compared with Friday.
Rising rates continued to crush the cell and gene therapy sector.
“We expect markets to remain volatile, with risks skewed to the downside as stagflation risks continue to increase,” wrote Barclays’ Maneesh Deshpande. “While we cannot discount sharp bear market rallies, we think upside is limited.” <CNBC>
52-week and all-time lows:
- Mesoblast (MESO) at $3.48,
- AVROBIO (AVRO) at $0.80,
- Global Blood Therapeutics (GBT) at $24.32,
- uniQure NV (QURE) at $14.13,
- Alnylam Pharmaceuticals (ALNY) at $123.74,
- Adverum Biotechnologies (ADVM) at $1.01,
- Chinook Therapeutics (KDNY) at $12.67,
- bluebird bio (BLUE) at $3.33,
- XBI at 65.68,
- IBB at 107.61,
- Sangamo Therapeutics (SGMO) at $3.83,
- Precigen (PGEN) at $1.18,
- Intellia Therapeutics (NTLA) at $43.55,
- Editas Medicine (EDIT) at $12.30,
- CRISPR Therapeutics (CRSP) at $43.77,
- Ultragenyx (RARE) at $55.88,
- Applied Genetic Technologies (AGTC) at $0.79,
- Solid Biosciences (SLDB) at $0.52,
- Sage Therapeutics (SAGE) at $27.86,
- Caribou Biosciences (CRBU) at $6.95,
- Fate Therapeutics (FATE) at $23.42,
- Beam Therapeutics (BEAM) at $33.52,
- Regenxbio (RGNX) at $21.53,
- Cellectis SA (CLLS) at $3.20,
RegMed Investors’ (RMi) pre-open: “sudden and extreme volatility ain’t over, time for BUYING “some” dips? The old adage, “Sell in May and go away,” hypes the May conditions after a brutal April.” … https://www.regmedinvestors.com/articles/12427
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Monday opened negative at 3 up/31 downs and 1 flat, stayed negative at the mid-day at 3/32, ending with a negative close of 1/34.
Pre-open Indications: 4 HITs < Biostage (BSTG -$0.50), Fate Therapeutics (FATE -$1.81), Intellia Therapeutics (NTLA -$6.12), Sangamo Therapeutics (SGMO -$0.44)> 5 MISS < Sage Therapeutics (SAGE -$1.09), Vericel (VCEL -$1.47), uniQure (QURE -$1.16), Ultragenyx (RARE -$5.74), AxoGen (AXGN +$0.29)>
Key Metrics: review the disparities between daily sessions during this “trying” week
- Monday - Sector volume was FLAT with 1 of the 1-upside having higher than the 3-month average volume with HIGH volume of 24 of 34-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 was down -5.20% and the XBI was down -8.26%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was up +4.49 points or +14.87% at 34.68
Jumping with share pricing momentum (1 of 1):
- AxoGen (AXGN +$0.29),
Hammered in today’s market (10 of 34):
- Alnylam Pharmaceuticals (ALNY -$12.23),
- Intellia Therapeutics (NTLA -$6.12),
- Ultragenyx (RARE -$5.74),
- CRISPR Therapeutics (CRSP -$4.78),
- Ionis Pharmaceuticals (IONS -$4.59),
- Global Blood Therapeutics (GBT -$3.20),
- Editas Medicine (EDIT -$2.55),
- Beam Therapeutics (BEAM -$2.39),
- Regenxbio (RGNX -$2.22),
- Fate Therapeutics (FATE -$1.81),
- Monday closed negative with 1 incliner and 34 decliners
The BOTTOM LINE: Slam, bam and a no thank you as the cell and gene therapy sector gets pushed down again …
Back to Friday’s pain after Thursday’s hurt followed Wednesday’s gain; as I ask the question –how deep is the wound?
The broad nature of the cell and gene therapy sector’s losses are concerning as they revolve back to April’s chaos.
As I continue, “State the obvious, investors are NOT in control of daily market driven sector appreciation or downward dives.”
Q1/22 earnings season is half completed (17 of 35 reported) having reported LPS (loss-per-share) results so far MISSING estimates and revenues.
Earnings’ season is upon us with: Agenus (AGEN) on 5/10 and Brainstorm Cell Therapeutics (BCLI) on 5/16 and Cellectis SA (CLLS) on 5/13.
I maintain MY concerns of a contrarian view and a right-on actuality of “our” universe” as represented by an outlook of anxiety, striking a more cautious tone on cell and gene therapy stocks for the short and near-term.
So, I think we have to keep in mind the alternating risks of earnings’ season in mind as the numbers explain.
I try to keep it simple … I don't think we've seen the bottom yet. We haven't had that big sell off yet where we have huge volumes.
I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.
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.