September 23, 2022 4:39pm

A losing and volatile week within my cell and gene therapy sector coverage list (32 down and 3 ups of 35)

Pre-open indications: 3 HIT and 1 MISS

News: Ionis Pharmaceuticals (IONS -$1.74) stock dived after partner AstraZeneca (AZN) decided against sending their high cholesterol treatment into P3 testing. The results didn't meet AZN's pre-specified effectiveness criteria.

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?

The week in review …

 


If I have learned one thing as a former research analyst in a venture and public fund 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 -486.27 points (-1.62%) the S&P closed DOWN -64.76 points (-1.72%) while the Nasdaq closed DOWN 198.88 points (-1.80%)

 

Henry’omics:

I have warned a deep dive was imminent …   

The indexes jumped to their fifth (5th) decline in the last six (6) weeks and on track to close out the week with losses. The Dow has given up about -4% this week, while both the S&P -465% and Nasdaq -5.07%.

Economic Data Docket: U.S. manufacturing and services activity eased in September, according to S&P Global. The Flash US PMI Composite Output Index declined at a softer pace this month, falling to 49.3. That’s still up from 44.6 in August. It’s also the index’s highest reading in three months.

 

52-week low:

·         Applied Genetic Technologies (AGTC) at $0.28

·         Avrobio (AVRO) at $0.68,

·         Verastem Oncology (VSTM) at $0.92

·         Ultragenyx (RARE) at $41.50

 

Largest volume of the session:

  • bluebird bio (BLUE) Friday 5.87 M shares (-$0.35) after Thursday’s 6.546 million shares (-$0.20) after Wednesday’s +9.118 million shares traded (-$0.69), Tuesday’s +21.503 million shares traded (+$0.93) after Monday’s -30.962 million share traded (-$0.41 or -6.47%) – EXPECT an offering!

 

RegMed Investor’s (RMi) Pre-Open: “recession dents your appetite, whether investors want to admit it. Price of eggs = $2.74 for a dozen, share price of Applied Genetic Technologies (AGTC $0.29); price of OJ = $3.97 for 32 fluid ounces, share price of Avrobio (AVRO $0.72). Which would you rather have, buy, rather as volatility drives equities lower and basic needs higher?” … https://www.regmedinvestors.com/articles/12617

 

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

  • Friday’s advance/decline line opened negative at 2 up/ 32 down and 1 flat, stayed negative with 0 up/33 down and 2 flats at the mid-day, ending with a negative close of 3/32 and 0 flat.
  • Thursday’s advance/decline line opened negative at 5 up/ 29 down and 1 flat, stayed negative with 4 up/31 down and 0 flat at the mid-day, ending with a negative close of 5/29 and 1 flat.
  • Wednesday’s advance/decline line opened negative at 13 up/ 17 down and 5 flats, stayed negative with 11 up/23 down and 1 flat at the mid-day, ending with a negative close of 4/30 and 1 flat.
  • Tuesday’s advance/decline line opened negative at 3 up/ 32 down and 2 flats, stayed negative with 14 up/20 down and 1 flat at the mid-day, ending with a negative close of 9/26 and 0 flat.
  • Monday’s advance/decline line opened negative at 4 up/ 30 down and 1 flat, stayed negative with 9 up/26 down and 0 flat at the mid-day, ending with a negative close of 9/26 and 0 flat.

 

Pre-open Indications: 3 HITs < Sage Therapeutics (SAGE -$0.72), Intellia Therapeutics (NTLA -$3.16), Biostage (BSTG $1.39 with 2,051 shares traded)> 1 MISS < Beam Therapeutics (BEAM -$1.06)>  

 

Key Metrics:

  • Friday - Sector volume was LOW with 0 of the 3-upside having higher than the 3-month average volume with LOW volume of 12 of 32-downside having higher than the 3-month average volume
  • Thursday - Sector volume was LOW with 1 of the 5-upside having higher than the 3-month average volume with LOW volume of 5 of 29-downside having higher than the 3-month average volume
  • Wednesday - Sector volume was LOW with 1 of the 4-upside having higher than the 3-month average volume with LOW volume of 5 of 30-downside having higher than the 3-month average volume
  • Tuesday - Sector volume was LOW with 2 of the 9-upside having higher than the 3-month average volume with LOW volume of 5 of 26-downside having higher than the 3-month average volume
  • Monday - Sector volume was LOW with 2 of the 9-upside having higher than the 3-month average volume with LOW volume of 3 of 26-downside having higher than the 3-month average volume

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

  • Friday, the IBB was down -1.21% and the XBI was down -1.84%
  • Thursday, the IBB was down -1% and the XBI was down -1.31%
  • Wednesday, the IBB was down -2.64% and the XBI was down -3.49%
  • Tuesday, the IBB was down -1.03% and the XBI was down -0.29%
  • Monday, the IBB was down -0.94% and the XBI was down -2.05%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was up +2.45 points or +8.96% at 29.80
  • Thursday was down -0.64 points or -2.29% at 27.35
  • Wednesday was up +0.95 points or +3.50% at 28.11
  • Tuesday was up +1.44 points or +5.59% at 27.20
  • Monday was down -0.54 points or -2.05% at 25.76

 

Jumping with share pricing momentum (3 of 3):

  • Vericel (VCEL +$0.21 after Thursday’s -$0.96),
  • Brainstorm Cell Therapeutics (BCLI +$0.10 after Thursday’s +$0.06, Wednesday’s +$0.16, Tuesday’s +$0.04 and Monday’s -$0.25),
  • Global Blood Therapeutics (GBT +$0.02 after Thursday’s +$0.28),

Closing down (10 of 32):

  • Intellia Therapeutics (NTLA -$3.16 after Thursday’s -$2.39, Wednesday’s -$3.06, Tuesday’s -$0.94 and Monday’s -$2.24),
  • Alnylam Pharmaceuticals (ALNY -$1.93 after Thursday’s -$3.68, Wednesday’s -$5.52, Tuesday’s -$3.99 and Monday’s +$3.00),
  • CRISPR Therapeutics (CRSP -$1.74 after Thursday’s -$1.75, Wednesday’s -$3.48, Tuesday’s +$1.31 and Monday’s -$1.71),
  • Ionis Pharmaceuticals (IONS -$1.74),
  • Ultragenyx (RARE -$1.64 after Thursday’s -$0.94, Wednesday’s -$1.23 and Tuesday’s -$0.48),
  • Biostage (OTCQB: BSTG -$1.39, after Thursday’s $0.00, Wednesday’s $0.00, Tuesday’s +$0.10 and last Monday’s +$1.10),
  • Verve Therapeutics (VERV +$1.25 after Thursday’s +$0.06),
  • Beam Therapeutics (BEAM -$1.06 after Thursday’s -$3.47, Wednesday’s -$1.86, Tuesday’s -$0.31 and Monday’s -$2.33),
  • Sage Therapeutics (SAGE -$0.72 after Thursday’s -$0.66, Wednesday’s -$1.38, Tuesday’s -$0.89 and Monday’s +$1.55),
  • Chinook Therapeutics (KDNY -$0.67),

 

September, Q3/202

  • Friday closed negative with 3 incliners, 32 decliners and 0 flat
  • Thursday closed negative with 5 incliner, 29 decliners and 1 flat
  • Wednesday closed negative with 4 incliners, 30 decliners and 1 flat
  • Tuesday closed negative with 9 incliner, 26 decliners and 0 flat
  • Monday closed negative with 9 incliner, 26 decliners and 0 flat

 

The BOTTOM LINE: The sector ended the day in the RED - again!

Cell and gene therapy equities finished LOWER on Monday, Tuesday, Wednesday, Thursday and Friday as investors ended the volatile week.

I try to keep it simple … and short!

Investors are now pricing-in the U.S. recession; more and more companies should be warned on the impact of fading share pricing, G&A and employment costs.

Traders and investors should be focused on which CEOs and management teams will step-up and BUY their company shares with personal capital!!

Extra problem coming … with another quarter about to close (Q3) … and back to earnings season!

September continued with 1 holiday, 7 positive and 9 negative closes; August is over with 1 neutral, 11 positive and 11 negative closes while last week which ended the month.

As I continually question, “The real question that should be asked is how many companies are at the end of sentiments …  leash?

Start by looking at cell and gene therapy companies trading below cash!” 

Repeating myself, “I find it very interesting to evaluate share price over earnings and a shortage of revenue reporting as a proxy for share pricing performance?”

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.