June 13, 2022 4:58pm
Bottom, bottom; who can even envision the next bottom as the cell and gene therapy equities melt-down, also waiting for the Fed meeting this week
News: bluebird Bio’s (BLUE +$0.54 or +14.48% to $4.27) after the FDA Cellular, Tissue and Gene Therapies advisory committee approved two (2) of its experimental gene therapies - elivaldogene autotemcel or Eli-CEL gene therapy for the treatment of patients with early active cerebral adrenoleukodystrophy, a disease linked to the X chromosome - expect a financing on news.
Homology Medicines (FIXX -$0.15 or -6.98% to $2.00) is now able to restart its P2 trial of a gene therapy for the rare metabolic disease phenylketonuria, or PKU. The FDA had shown concerns that Homology’s gene therapy, known as HMI-102, might lead to liver damage issues. In announcing the hold had been lifted, Homology said there were no hospitalizations required pertaining to the elevated liver function tests seen in the trial of adults.
Pre-open indications: 6 HITs, 1 MISS and 1 PUFF/Pump/Promote
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 -876.05 points (-2.79%); the S&P closed DOWN -151.23 points (-3.88%) while the Nasdaq closed DOWN -530.80 points (-4.68%)
Indexes sold off Monday, pushing lower as recession fears grew ahead of a key Fed meeting this week.
Appropriate quote, “It tells me that there’s a buyers’ strike and with that [CPI] print you have people that are obviously selling but no one is stepping in to buy,” said Keith Lerner, Truist’s co-chief investment officer.
Another, “The odds of a ‘June Swoon’ … have gone up significantly, in our view,” wrote Jonathan Krinsky, technical analyst for BTIG. <CNBC>
RegMed Investors’ (RMi) pre-open: “climbing the rope of share pricing and failing again after two (2) rough and shaken falls, challenge and climb it; let RMi do the footwork for you; As I am VERY concerned by sector LOWS and ability to comeback and, there is value out there” … https://www.regmedinvestors.com/articles/12470
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
Monday opened negative at 2 up/ 31 downs and 2 flats, stayed negative at the mid-day to 3/32, ending with a negative close of 33/2.
Pre-open Indications: < 6 HITs < uniQure NV (QURE -$0.85), Verve Therapeutics (VERV -$0.77), Beam Therapeutics (BEAM -$3.22), Intellia Therapeutics (NTLA -$3.49), CRISPR Therapeutics (CRSP -$8.49), Fate Therapeutics (FATE -$2.03)> 1 MISS < Ionis Pharmaceuticals (IONS -$1.26)> 1 Puff/Pump/Promote < Biostage (BSTG +$0.15 with 100 shares traded)>
52-weeek low: there is more to come if downfall continues …
- Mesoblast (MESO) at $2.68
- Global Blood Therapeutics (GBT) at $22.15
- Cellectis SA (CLLS) at $2.55,
- Caribou Biosciences (CRBU) at $5.52
- Sangamo Therapeutics (SGMO) at $3.35
- Intellia Therapeutics (NTLA) at $38.46
- Global Blood Therapeutics (GBT) at $21.76
- Fate Therapeutics (FATE) at $17.78
Key Metrics: review the reasons for the daily session's decline …
- Monday - Sector volume was LOW with 0 of the 2-upside having higher than the 3-month average volume with HIGHER volume of 22 of 33-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 -4.08% and the XBI was down -5.53%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was up +6.27 points or +22.59% at 34.02
Jumping with share pricing momentum (2 of 2):
- bluebird bio (BLUE +$0.54 after Friday and Thursday's hold $0.00),
- Biostage (BSTG +$0.15 after Friday’s +$0.06, after Thursday’s $0.00, Wednesday’s $0.00, Tuesday’s $0.00 and last Monday’s +$0.23),
Closing down (10 of 33):
- CRISPR Therapeutics (CRSP -$8.49 after Friday’s -$8.18),
- Alnylam Pharmaceuticals (ALNY -$4.41 after Friday’s -$3.17),
- Intellia Therapeutics (NTLA -$3.49 after Friday’s -$7.69),
- Beam Therapeutics (BEAM -$3.22 after Friday’s -$4.68)
- Sage Therapeutics (SAGE -$2.58 after Friday’s -$2.81),
- Ultragenyx (RARE -$2.20 after Friday’s -$1.21),
- Fate Therapeutics (FATE -$2.03 after Friday’s -$3.73),
- Caribou Biosciences (CRBU -$1.84 after Friday’s -$1.78),
- Chinook Therapeutics (KDNY -$1.54 after Friday’s -$0.49),
- Ionis Pharmaceuticals (IONS -$1.26 after Friday's -$0.17)
- Monday closed negative with 2 incliner and 33 decliners
The BOTTOM LINE: Another SAD session for our universe and to start the week as buyers DISAPPEAR.
A “short squeeze” is definitely upon us … and I am praying for a gap-up by algorithms (how I have fallen)!
Monday’s “downward moves” came after the major averages last week posted their biggest weekly declines since late January as investors grew increasingly concerned rising inflation will tip the economy into a recession.
The cell and gene therapy sector’s afternoon trading was back to exhibiting violent swings as investors are left holding “the bag” hoping for a re-calibration and praying for algorithms to help this “situation”.
Amid the sell-off, continue to maintain a “defensive posture” – in other words – HOLD on tight.
We always need a villain – Inflation affects the market and conversely the sector with downslides has remained a dominant issue for investors.
The consumer price index inflation “numbers” as to the CPI accelerating 8.6% year-over-year (YOY) following April's 8.3% rise. That marked the biggest jump since late 1981, and took out the prior 41-year high set in the March CPI, which rose 8.5%.
Which investors will be BUYING equities if we can barely afford gas and food!
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!
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.