June 6, 2022 4:53pm
Market inclines as cell and gene therapy sector declines; what did I write Friday, “Waiting for next week’s declines” - it’s happening!
The Biostage Chronicles (BSTG): expends 3,575 shares to push the share price to close +$0.23 after trading down -$0.15 with 3,475 shares traded for most of session
News: Global Blood Therapeutics (GBT -$1.82), Applied Genetic Technologies (AGTC +$0.006) and Verastem Oncology (VSTM -$0.11) <below>
Pre-open indications: 2 HITs and 5 MISS <52-week lows, technicals and fundamentals don’t matter>
WHY and HOW is this market affecting the cell and gene therapy sector … “The Bottom Line” underlines the framework of share pricing actions. Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read facts supported by real numbers?
It’s a quick read to understand the ebb and flow of the session in one site
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 UP +15.42 points (+0.05%); the S&P closed UP +12.81 points (+0.31%) while the Nasdaq closed UP +48.64 points (+0.40%)
U.S. stocks rose Monday as the indexes bounce back from a week of losses …
· The declines came after a stronger-than-expected May jobs report showed hiring kept at a slower but still-robust tempo last month – a sign of continued strength in the labor market expected to keep policymakers on pace with interest rate-hiking plans.
Later this week, investors will get the latest gauge on how quickly prices are rising across the U.S. when the Bureau of Labor Statistics releases its latest Consumer Price Index Friday.
· The consensus’ estimate by economists as surveyed by Econoday is an 8.2% increase, a slight dip from April's 8.3% rate.
Highlights and News today:
Applied Genetic Technologies (AGTC) announced an encore presentation of interim data from its ongoing P2 Skyline trial of AGTC-501, a recombinant AAV viral vector-based gene therapy targeting mutations in the RPGR gene in patients with X-linked retinitis pigmentosa (XLRP), at the 45th Macula Society Annual Meeting taking place June 8-11, 2022, in Berlin, Germany.
· AGTC NEEDS a positive “response” to its platform, share price – the question is – will it be recognized?
Global Blood Therapeutics (GBT) the FDA has granted both orphan drug and rare pediatric disease designations for inclacumab and GBT021601 (GBT601) for the treatment of sickle cell disease (SCD).
Verastem Oncology (VSTM) announced an interim analysis of its international P2 RAMP 201 trial evaluating VS-6766 ± defactinib in recurrent low-grade serous ovarian cancer (LGSOC), regardless of KRAS status.
· Independent review in patients treated with VS-6766 monotherapy and patients treated with VS-6766 in combination with defactinib. The findings also include confirmed responses by independent review in both KRAS mutant and KRAS wild-type LGSOC.
· To date, there have been no additional safety signals with a continued favorable safety profile in both the monotherapy and combination treatment arms with approximately 6% of patients discontinuing due to adverse events.
RegMed Investors’ (RMi) pre-open: “the tug-of-war in share pricing. How now, brown cow, a barrel of beer analogy; what’s on tap for the week – more volatility” … https://www.regmedinvestors.com/articles/12460
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Monday opened negative at 10 up/25 downs and 3 flats, stayed negative at the mid-day to 5/27 and 3 flats, ending with a negative close of 11/23 and 1 flat (BCLI).
- Friday opened positive at 21 up/12 downs and 2 flats, stayed positive at the mid-day to 20/13 and 2 flats, ending with a positive close of 27/8.
Pre-open Indications: 2 HITs < Sage Therapeutics (SAGE -$0.05), BioLife Solutions (BLFS +$0.17)> 5 MISS < Biostage (BSTG +$0.23), Fate Therapeutics (FATE -$1.65), Intellia Therapeutics (NTLA -$0.12), Editas Medicine (EDIT -$0.32), UniQure NV (QURE -$0.34)>
Key Metrics: review the disparities between daily sessions …
- Monday - Sector volume was HIGHER with 5 of the 11-upside having higher than the 3-month average volume with MODERATE volume of 12 of 23-downside having higher than the 3-month average volume;
- Friday - Sector volume was MODERATE with 13 of the 28-upside having higher than the 3-month average volume with HIGHER volume of 1 of 8-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 -1.08% and the XBI was down -2.85%
- Friday, the IBB was up +0.12% and the XBI was up +3.55%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was up +0.25 points or +1.01% at 25.04
- Friday was up +0.07 points or 0.28% at 24.79
Jumping with share pricing momentum (11 of 11):
- Biostage (BSTG +$0.23 after Friday’s -$0.33),
- BioLife Solutions (BLFS +$0.17 after Friday’s -$0.40
- Alnylam Pharmaceuticals (ALNY +$0.11 after Friday’s +$6.02),
- Precigen (PGEN +$0.10),
- AxoGen (AXGN +$0.09 after Friday’s -$0.59),
- Adverum Biotechnologies (ADVM +$0.0418),
- Solid Biosciences (SLDB +$0.0296),
- Homology Medicine (FIXX +$0.02),
- CRISPR Therapeutics (CRSP +$0.01 after Friday’s +$3.21),
- Bellicum Pharmaceuticals (BLCM +$0.01 after Friday’s -$0.28),
- Applied Genetic Technologies (AGTC +$0.0006 after Friday’s -$0.0086),
Closing down (10 of 23):
- Ultragenyx (RARE -$2.15 after Friday’s +$1.45),
- Ionis Pharmaceuticals (IONS -$2.13),
- Global Blood Therapeutics (GBT -$1.82 after Friday’s +$1.10),
- Fate Therapeutics (FATE -$1.65),
- Beam Therapeutics (BEAM -$1.39 after Friday’s +$0.43),
- Voyager Therapeutics (VYGR -$1.20 after Friday’s +$0.33),
- Chinook Therapeutics (KDNY -$1.05 after Friday’s +$1.41),
- Verve Therapeutics (VERV -$1.04),
- Regenxbio (RGNX -$0.81 after Friday’s +$1.26),
- Vericel (VCEL -$0.79 after Friday’s -$0.29),
- Brainstorm Cell Therapeutics (BCLI)
- Monday closed negative with 11 incliner, 23 decliners and 1 flat
- Friday closed positive with 27 incliner and 8 decliners
- Thursday closed positive with 28 incliner, 6 decliners and 1 flat
- Wednesday closed negative with 6 incliner, 29 decliners and 1 flat
The BOTTOM LINE: It’s very hard in this continuum to have consecutive sessions or days of strength!
… Because there’s so much worry that people use any piece of good news as a chance to sell,”
Reiterating, I believe there will be opportunity in cell and gene therapy equities but, the summer doldrums are still a roadblock. This period of volatility will likely last into the second half of the year.
At the time in June, as consecutive upside sessions are ominous as dramatic upsides after downslides open the door to electronic trading appetites!
A usual pullback wasn't a big surprise after strong gains.
Technicals and fundamentals are STILL ignored … for a reason – it’s about the continual LPS (loss-per-share) status of the cell and gene therapy sector.
Reiterating, “I continue to expose the feeling … “like Sisyphus … eternally to repeatedly roll a heavy rock up a hill … only to have it roll down again as it nears the top … as I watch the roller-coaster go round.
· Reiterating, “Sisyphus teaches us to never give in to circumstantial disappointments or try to escape from the failures, rather accept failures the same way we accept our achievements. And most importantly, no matter how much we lose in our quest, we must never back down till we fulfill our potential.”
WHY is “our” universe of cell and gene therapy sector slipping, it goes beyond algorithms “raping” share pricing …
What did I write in the title, “investor fatigue still facilitates diminished investor sentiment?”
However, the continuing state of volatility confirms fears that I have been expressing these daily and weekly posts.
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 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.
I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.
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.