September 27, 2022 4:44pm

Tuesday pares losses after seven (7) in a row cell and gene therapy sector dives

NEWS: Crispr Therapeutics (CRSP +$2.53 or +4.14%) will begin asking the FDA to approve what would be the first-ever gene-editing treatment < using gene-editing to restore a patient's ability to produce healthy blood cells>. For FDA approval, CRSP and partner Vertex Pharmaceuticals (VRTX) said they would begin submitting their application for the blood diseases treatment in November. They plan to finish that process in Q1; seeking approval in sickle cell disease and beta thalassemia.

The Biostage (OYCQB: BSTG) Chronicles: was up +$0.78 with 200 shares until the "pump/promote" went downside and closed flat ($0.00) with 2,675 shares traded

Pre-open indications: 4 HITs and 3 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?

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 -123.91 points (-0.42%), the S&P closed DOWN -7.45 points (-0.20%) while the Nasdaq closed UP +26.58 points (+0.25%)

 

Henry’omics:

Indexes were mixed with only the Nasdaq up with the S&P 500 setting a new 2022 low (-24.7% below its record set in January).

The Dow is 21.4% below its all-time high, while the Nasdaq has fallen more than 33% since hitting a record in November.

Economic Data Docket: U.S. consumer confidence jumped to a five-month high of 108 in September as gas prices fell.

 

Largest volume of the session:

  • bluebird bio (BLUE) 5.911 million shares (+$0.29), after Monday’s 6.089 million shares (-$0.46) after Friday’s 5.87 M shares (-$0.35), Thursday’s 6.546 million shares (-$0.20), Wednesday’s +9.118 million shares traded (-$0.69), Tuesday’s +21.503 million shares traded (+$0.93) and last Monday’s -30.962 million share traded (-$0.41 or -6.47%) <average 3 mo. volume = 8.335 million shares>

 

RegMed Investor’s (RMi) Pre-Open: “when you have to take a stock’s value beat-down, just think recovery. Upside futures could set the tone for Tuesday’s sector’s equities.” … https://www.regmedinvestors.com/articles/12621

 

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

  • Tuesday’s advance/decline line opened positive at 31 up/ 3 down and 1 flat, stayed positive with 27 up/7 down and 1 flat at the mid-day, ending with a positive close of 28/5 and 2 flats.
  • Monday’s advance/decline line opened positive at 27 up/ 7 down and 1 flat, flipped negative with 6 up/28 down and 1 flat at the mid-day, ending with a negative close of 5/30 and 0 flat.

 

Pre-open Indications: 4 HITs < Agenus (AGEN +$0.08), Biostage (OTCQB: BSTG $0.00), CRISPR Therapeutics (CRSP +$2.53), uniQure NV (QURE +$1.06)> 3 MISS <Ultragenyx (RARE +$0.33), Beam Therapeutics (BEAM +$1.85), BioLife Solutions (BLFS +$0.84)>

 

Key Metrics:

  • Tuesday - Sector volume was LOW with 3 of the 28-upside having higher than the 3-month average volume with LOW volume of 2 of 5-downside having higher than the 3-month average volume
  • Monday - Sector volume was LOW with 2 of the 5-upside having higher than the 3-month average volume with LOW volume of 2 of 30-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 up +1.23% and the XBI was up +2.88%
  • Monday, the IBB was down -1.51% and the XBI was down -2.07%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.70 points or +2.17% at 32.96
  • Monday was up +2.26 points or +7.55% at 32.18

 

Jumping with share pricing momentum (10 of 28):

  • Alnylam Pharmaceuticals (ALNY +$5.22 after Monday’s -$3.39),
  • Verve Therapeutics (VERV +$3.13 after Monday’s -$3.94),
  • CRISPR Therapeutics (CRSP +$2.53 after Monday’s -$2.05),
  • Beam therapeutics (BEAM +$1.85),
  • Intellia Therapeutics (NTLA +$1.83 after Monday’s +$0.28),
  • uniQure NV (QURE +$1.06),
  • Regenxbio (RGNX +$0.90 after Monday’s -$0.57),
  • Sage Therapeutics (SAGE +$0.50 after Monday’s -$0.83),
  • Fate Therapeutics (FATE +$0.89 after Monday’s -$0.93),
  • BioLife solutions (BLFS +$0.84 after Monday’s -$0.64),

Flat:

  • Biostage (OTCQB: BSTG $0.00 after Monday’s +$0.39)
  • Verastem (VSTM)

Closing down (5 of 5):

  • Avrobio (AVRO -$0.0744 after Monday’s +$0.0453),
  • Mesoblast (MESO -$0.06),
  • Adverum Biotechnologies (ADVM -$0.0398),
  • Solid Biosciences (SLDB -$0.0141),
  • Bellicum Pharmaceuticals (BLCM -$0.01),

 

September, Q3/2022

  • Tuesday closed positive with 28 incliner, 5 decliners and 2 flats
  • Monday closed negative with 5 incliner, 30 decliners and 0 flat

 

The BOTTOM LINE: Cell and gene therapy equities ended the day in the GREEN after a RED Monday – a break from the 7X downslides in a row!

I try to keep it simple … and short!

Tuesday’s price action follows a frustrating pattern of deep dives, I welcome the upside “ascension” but, is it a “faux” rally?

Given today’s market dramatic upside, I believe driven by algorithms - investors should be very cautious about position entry.

The end of Q3 is coming this week and October has NEVER been a good month for equities.

September continued with 1 holiday, 9 positive and 10 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!” 

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.