July 11, 2022 7:43am

Basically, random “picks” are in store for the week in “our” universe of cell and gene therapy equities

Pre-open indications:  1 Positive Indication driven by news, 1 Sell into Strength, 3 Negative Indications and 1 Puff/Pump/Promote

News: Ionis Pharmaceuticals (IONS +$1.42 or +3.82% to $38.57) announced that its long-standing partner, Roche, will license and advance IONIS-FB-LRx, an investigational antisense medicine, into a P3 clinical study in patients with immunoglobulin A nephropathy (IgAN). IgAN is a rare and serious condition that often leads to chronic kidney disease and renal failure.

RMi outlines a daily bell ringing 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.

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.

The 8:00 A.M., ET edition


Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.

 

Dow futures are DOWN -0.45% or (-140 points), S&P futures are DOWN -0.55% (-21 points) and NASDAQ futures are DOWN -0.73% (-88 points) early in the pre-open – so far,

 

U.S. equities futures are diving early Monday morning; prepare for a negative open,

European stocks were trading lower,

Asia Pacific markets are mixed as China imposed fines on several companies, including tech giants Alibaba and Tencent, for not complying with anti-monopoly rules on disclosure of transactions.

 

Henry’omics:

Indexes are poised for a lower open on Monday.

Friday, the Dow closed DOWN -45.35 points (0.14%); the S&P closed DOWN -3.25 points (-0.08%) while the Nasdaq closed UP +13.96 points (+0.12%).

The major indexes decisively clearing these key levels would be a positive step, though the market rally would still face numerous challenges, from technical resistance to the start of earnings season. Conversely, a sell-off from current levels would be bearish signal. <IBD>

Friday showed that the economic downturn worrying investors has not yet arrived and added to positive sentiment.

Economic Data Docket: Investors are also looking ahead to key inflation data this week. The June consumer price index will be released Wednesday and is expected to show headline inflation, including food and energy, rising above May’s 8.6% level. The June producer price index is due out Thursday and the University of Michigan consumer sentiment report for July will be released Friday.

 

RegMed Investors’ (RMi) closing bell: “sector moves up, neutral, down and back to the upside” … https://www.regmedinvestors.com/articles/12508

Ebb and flow –

Q3/22 – 1 holiday, 1 negative and 4 positive closes

Q2/22 –

June – 1 holiday, 9 positive and 11 negative closes

·         May - 11 positive and 10 negative closes

·         April - 1 holiday, 6 positive and 13 negative closes

Q1/22:

·         March – 13 negative and 10 positive closes

·         February stats: 11 negative, 8 positive closes and 1 holiday

·         January stats: 2 holidays, 1 neutral, 13 negative and 6 positive closes

 

Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS

Positive Indication driven by news:

Ionis Pharmaceuticals (IONS) closed up +$0.38 to $37.15 with a positive +$1.42 or +3.82% pre-open indication after announcing that its long-standing partner, Roche, will license and advance IONIS-FB-LRx, an investigational antisense medicine, into a Phase 3 clinical study in patients with immunoglobulin A nephropathy (IgAN). IgAN is a rare and serious condition that often leads to chronic kidney disease and renal failure.

 

Positive indications while I maintain a still SELL into Strength:

Caribou Therapeutics (CRBU) closed up +$0.25 to $6.79 after Thursday’s +$0.74 with a positive +$0.19 or +2.80% pre-open indication,

 

Negative Indication:

Beam Therapeutics (BEAM) closed up +$0.34 to $52.01 after Thursday’s +$6.11, Wednesday’s -$0.93 and Tuesday’s +$6.70 with a negative -$0.49 or -0.94% pre-open indication,

Fate Therapeutics (FATE) closed down-$0.92 to $30.01 after Thursday’s +$2.30 with a negative -$0.49 or -1.63% pre-open indication,

UniQure NV (QURE) closed up +$0.86 to $22.77 after Thursday’s +$1.72, Wednesday’s -$0.65 and Tuesday’s +$1.66) with a negative -$1.13 or -4.96% pre-open indication,

 

Puff/Pump and Promote: Maintaining SELL

Biostage (OTCQB: BSTG) closed down -$0.55 to $5.70 with 2,334 shares traded after Thursday’s +$0.23 to $6.25 with 4,771 shares traded, Wednesday’s +$1.22 to $6.02 with 14, 121 shares traded <3 mo. Average = 1,636 shares>, Tuesday’s +$0.32 to $4.80 with 496 shares traded, Monday was a holiday and last Friday’s -$0.17 to $4.48 with 568 shares.

·         BSTG seems to always finagling a finagle and NOTHING is CLEAN and STRAIGHTFORWARD; is it the ONLY avenue to finance to utilize non-U.S. Chinese investors?

·         How much lipstick is a lot on this pig with an almost 4-year-old IND and NO clinical trial initiation?

·         WATCH and be ready for a BIG reverse of shares to enable offering from multiple private placements as it tries to facilitate an offering with Newbridge Securities

 

The BOTTOM LINE: I try to keep it simple … and short!

The cell and gene therapy sector had a strong week (only one negative close) but is at a make-or-break point.

While the sector ended in the green Friday, shareholders should brace for continued volatility in July,

I remain cautious, after a week of “love”; a sell-off at current pricing would be a serious downward signal especially as we enter the Q2 earnings cycle. A few bad days would turn recent buys into clear losses, with the sector heading toward lows once again.

Quoting from myself, “I do appreciate the share pricing “ascension” again on Friday after Thursday’s positive close; however, I believe we are seeing a game of chicken with algorithms, electronic trading and traders. The sector appreciated for the fourth (4th) session this month and new Q3? Ultimately, the algorithms and electronic alongside traders are going to reap the profit on the back of the upside.”

Referencing the market,” The major indexes decisively clearing these key levels would be a positive step, though the market rally would still face numerous challenges, from technical resistance to the start of earnings season. Conversely, a sell-off from current levels would be bearish signal.” <IBD>

However, last week's sector gains came on light volume, suggesting institutions aren't making bets -it’s just an algorithmic frenzy.

A few bad days would turn recent buys into clear losses, with the sector heading back into new lows once again.

Pay attention to the thesis, “A sign of the times to come, Adverum Biotechnologies (ADVM), a gene therapy company will cut 78 jobs or 38% of its workforce to extend its “runway” into 2025 and focus its remaining cash on treatments for eye diseases, including a common cause of blindness”

How many of my coverage list are possibly in the same position with different scientific platforms – at least five (5) – AVRO, AGTC, BLCM, SLDB, VSTM and three (3) BSTG, BLUE and MESO, those who will NEED to raise capital in this terminal capital market.

BUILD CASH POSITIONS, the upward spiral will be STRIPPED, maybe NOT all today but, it’s coming.

Monday was a holiday, Tuesday opened positive, Wednesday’s negative close following Thursday’s positive close after last Friday’s (7/1) positive close.

Be prepared, earnings or LPS (loss-per-share) sessions are on their way and many companies will be just as glad to get them out as fast-as-possible to re-set ANY trajectory in August for September.”

There is VALUE out there however, it’s about playing or betting the timing of the sector.

We are left with choosing to hang on to “our” portfolio position as it is a given that the sector shifts from fierce, sudden sell-offs to gaining altitude or ascending not to its value but, better than it was.

Whether information or intelligence is good, bad or somewhere in between; RMi’s daily report is a primer that may say little or a lot; yet it serves as insurance that all indications are being examined and evaluated.

 

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.

All investments are subject to risks. Investors should consider investment objectives.

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.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions securities referred to in this publication.