June 9, 2022 4:45pm
As the trend is back being not your friend as markets and sector await Friday’s inflation data
News: bluebird Bio’s (BLUE $0.00) stock was halted and will be also on Friday while an FDA advisory committee discusses two (2) development applications for gene therapies. BLUE has asked the FDA to approve betibeglogene autotemcel for beta thalassemia and elivaldogene autotemcel for patients with early cerebral adrenoleukodystrophy who are younger than 18 years old. The FDA is expected to make a decision on beti-cel by Aug. 19 and eli-cel by Sept.
Pre-open indications: 5 HITs and 4 MISS
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 DOWN -638.11 points (-1.94%); the S&P closed DOWN -97.95 points (-2.38%) while the Nasdaq closed DOWN -332.04 points (-2.75%)
Indexes were lower on Thursday as investors waited for a key inflation report.
The slide for stocks comes ahead of the May consumer price index report on Friday. Investors are looking to see if inflation has peaked or if the Federal Reserve will need to be even more aggressive to tamp down price increases. <CNBC>
Economic Data Docket: Initial jobless claims rose to 229,000 last week, worse than the 210,000 expected.
RegMed Investors’ (RMi) pre-open: “who’s on first, what’s on second after two (2) positive sessions after a negative follows two (2) positive closes. Do you know the … companies names? I’m not asking you – I am telling you” <Abbott & Costello> … https://www.regmedinvestors.com/articles/12466
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Thursday opened negative at 3 up/ 30 downs and 2 flats, stayed negative at the mid-day to 5/28 and 2 flats, ending with a negative close of 5/28 and 2 flats.
Pre-open Indications: 5 HITs < Biostage (BSTG $0.00 with 43 shares traded), Chinook Therapeutics (KDNY +$0.05), Regenxbio (RGNX -$0.86), Beam Therapeutics (BEAM -$2.39), Ultragenyx (RARE -$3.30)> 4 MISS < Editas Medicine (EDIT -$0.56), Caribou Biosciences (CRBU -$0.35), Intellia Therapeutics (NTLA - $1.86), Mesoblast (MESO -$0.06)>
- Mesoblast (MESO) at $2.88
Key Metrics: review the disparities between daily sessions …
- Thursday - Sector volume was LOW with 1 of the 5-upside having higher than the 3-month average volume with LOW volume of 7 of 28-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Thursday, the IBB was down -3.49% and the XBI was down -4.03%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was up +2.25 points or +9.39% at 26.21
Jumping with share pricing momentum (5 of 5):
- Homology Medicine (FIXX +$0.07),
- Chinook Therapeutics (KDNY +$ after Wednesday’s +$0.44),
- Bellicum Pharmaceuticals (BLCM +$0.0412),
- Solid Biosciences (SLDB +$0.0279),
- Avrobio (AVRO +$0.01),
Closing down (10 of 28):
- Alnylam Pharmaceuticals (ALNY -$4.40 after Wednesday’s +$5.39, Tuesday’s +$2.38 and Monday’s +$0.11),
- Ultragenyx (RARE -$3.30 after Wednesday’s +$1.16, Tuesday’s +$3.97 and Monday’s -$2.15),
- Beam Therapeutics (BEAM -$2.39 after Wednesday’s +$1.66, Tuesday’s +$2.63 and Monday’s -$1.39),
- CRISPR Therapeutics (CRSP -$2.13 after Wednesday’s +$4.79, Tuesday’s +$4.82 and Monday’s +$0.01),
- Intellia Therapeutics (NTLA -$1.86 after Wednesday’s +$3.90 and Tuesday’s +$2.91),
- Global Blood Therapeutics (GBT -$1.40 after Wednesday’s -$0.08),
- Vericel (VCEL -$1.30 after Wednesday’s -$0.07),
- Verve Therapeutics (VERV -$0.96 after Wednesday’s +$0.28 and Tuesday’s +$1.18)
- Regenxbio (RGNX -$0.86 after Wednesday’s -$0.57, Tuesday’s +$1.20 and Monday’s -$0.81),
- Fate Therapeutics (FATE -$0.78 after Wednesday’s -$0.03, Tuesday’s +$2.29 and Monday’s -$1.65),
- bluebird bio (BLUE) and Biostage (BSTG)
- Thursday closed negative with 5 incliner, 28 decliners and 2 flats
The BOTTOM LINE: There’s a lot of head fakes going on.
It seems hard in this continuum to have consecutive days of strength with an algorithm withdrawal!
I try to keep it simple and short … because there’s so much worry that people use any piece of good news as a chance to sell – it has become a process of developing ROI (return of investment).”
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.
What changes … NOTHING … it’s a CONSTANT tug-of-war!
Again, as have I written (repeatedly), “There's a battle in the cell and gene therapy sector between which or what breaks first: share pricing resilience or tumbling into yet another downturn as fear remains beneath the strength of any positive close” …
I am not always right but, more than frequently not wrong … I NEVER trust this current market … too much fear and panic. This continuing state of volatility confirms fears that I have been expressing in these daily and weekly posts.
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.”
However, the continuing state of volatility confirms fears that I have been expressing these daily and weekly posts.
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.