August 9, 2022 4:35pm

As the cell and gene therapy sector’s share pricing dumps after a solid run; algos had a need to devourer after I stated, “Sometimes I feel like Jeremiah, a doomsayer; as I believe there’s a green light to increase resistance” and I wasn’t wrong

Pre-open indications: 9 HIT 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?

No tunnel vision here, I get into the weeds of daily share pricing and causes 

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 -56.29 points (-0.17%); the S&P closed DOWN -17.41 points (-0.42%) while the Nasdaq closed DOWN -150.53 points (-1.19%)

 

Henry’omics:

Indexes fell on Tuesday as investors navigated a batch of disappointing sector earnings’ reports ahead of a key inflation reading.

It’s been a tough week for the cell and gene therapy sector earnings – I have only seen LPS (loss-per-share) earnings with many revenue and estimate misses.

Earnings remain a drag on the sector.

Markets are hoping for an improvement in consumer inflation.

 

RegMed Investor’s (RMi) Pre-Open: “an uptrend under pressure" as more sector earnings report and market action ahead of Wednesday's inflation report — the consumer price index. Sometimes I feel like Jeremiah, a doomsayer; as I believe there’s a green light to increase resistance” … https://www.regmedinvestors.com/articles/12554

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …

  • Tuesday’s advance/decline line opened negative at 6 up/ 28 down and 1 flat, stayed negative with 4 up/31 and 0 flat at the mid-day, ending with a negative close of 4/29 and 2 flats.

 

Pre-open Indications: 9 HITs <Biostage (OTCQB: BSTG $0.45 with 9978 shares traded); Earnings:  Agenus (AGEN -$0.05), Avrobio (AVRO -$0.005), Beam Therapeutics (BEAM -$2.56), Ionis Pharmaceuticals (IONS -$1.71), Sage Therapeutics (SAGE -$1.04); Negative Indications: Intellia Therapeutics (NTLA -$3.17), MiMedx (MDXG -$0.11), Sangamo Therapeutics (SGMO -$0.07)> 4 MISS <earnings: Verve Therapeutics (VERV +$1.03); Positive Indications:  Regenxbio (RGNX -$0.88), Vericel (VCEL -$2.49), BioLife Solutions (BLFS -$1.10) >

 

Key Metrics:

  • Tuesday - Sector volume was HIGH with 3 of the 4-upside having higher than the 3-month average volume with LOW volume of 9 of 29-downside having higher than the 3-month average volume;

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Tuesday, the IBB was down -1.61% and the XBI was down -3.37%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.60 points or +2.82% at 21.89

 

Jumping with share pricing momentum (4 of 4):

  • Verve Therapeutics (VERV +$1.17 after Monday’s +$0.50),
  • uniQure NV (QURE +$0.38 after Monday’s -$6.90),
  • Precigen (PGEN +$0.26),
  • Solid Biosciences (SLDB +$0.0107),

Flat:

  • Avrobio (AVRO) and Bellicum Pharmaceuticals (BLCM)

Closing down (10 of 29):

  • Alnylam Pharmaceuticals (ALNY -$7.37 after Monday’s +$12.16),
  • CRISPR Therapeutics (CRSP -$6.26),
  • Intellia Therapeutics (NTLA -$3.08 after Monday’s +$0.17),
  • Beam Therapeutics (BEAM -$2.73 after Monday’s +$0.26),
  • Vericel (VCEL -$2.41 after Monday’s -$0.93),
  • Ionis Pharmaceuticals (IONS -$1.45),
  • Fate Therapeutics (FATE -$1.30 after Monday’s +$0.72),
  • Ultragenyx (RARE -$1.26 after Monday’s -$2.97),
  • Editas Medicine (EDIT -$1.14 after Monday’s -$0.29),
  • Chinook Therapeutics (KDNY -$1.00),

 

August, Q3/2022:

  • Tuesday closed negative with 4 incliner, 29 decliners and 2 flats
  • Monday closed barely positive with 17 incliner, 16 decliners and 2 flats

 

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

More net and per share losses but, all are in a development status, or are they? SG&A’s are, I believe “OUT-OF-CONTROL”, CEOs are skimming shareholders with HIGH salaries and perks as share pricing gets hammered on alternate sessions.

The real question is how recently have CEOs bought-into their depreciated share pricing such as two: AVRO and AGTC.

As I have “noticed” yet again from to date reporting, “Most reporting sector companies … to date have reported net losses, lagging revenue estimates … although AXGN, FATE, RGNX and NTLA beat on revenues generating forward motion while ATM use is up.”

 I was proven RIGHT after having written … “I am STILL … skeptical that Tuesday through Friday’s rally can be sustain! I am also NOT convinced that the lows are in the cell and gene therapy sector are behind us.”

I’m STILL a firm believer in the “flight of Icarus” …  since the cell and gene therapy equities have oscillated between gains and losses since the first of the year... the big “slip” came today, Tuesday 8/9!

Hold-on (to the railing) as our portfolios weather these volatile sessions as an ordinary practice.

The coming weeks will reveal more about the cell and gene therapy sector's state of health.

This week, the cell and gene therapy sector Q2 earnings continue full-force: 28 or 35 have reported, Brainstorm Cell Therapeutics (BCLI) on 8/15.

I find it very interesting to evaluate share price over earnings and a shortage of revenue reporting as a proxy for performance.

We always need a villain and they are multiplying – We are stuck in “Earnings’ season, investors NEED to focus on LPS (loss-per-share), collaboration revenues and cash positions i.e., runways”.

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.