October 3, 2022 5:22pm

As cell and gene therapy sector closes positive on first session of October

A Shout-Out to Ilan Ganot of Solid Biosciences (SLDB) for being creative and proactive and identifying the chances of success and ability to develop treatment for the Duchenne community!

Pre-open indications: 8 HITs and 2 MISS

WHY and HOW is this market affecting the cell and gene therapy sector … “The Bottom Line” underlines the framework of share pricing actions.

No tunnel vision here, this analyst/journalist gets into the weeds of daily share pricing and root causes.

Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write

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 UP +765.38 points (+2.66), the S&P closed UP +92.81points (+2.59%) while the Nasdaq closed UP 239.92 points (+2.27%)

 

Henry’omics:

Indexes are coming off a tough month … on a high note.

The Dow surged more than 900 points at its session high and remained on track for its biggest one-day percentage jump since June 2020 as equities kicked off the new month and quarter with a sharp bounce. The Dow remained up which would be its largest percentage rise since June 5, 2020. The S&P 500 exhibited its biggest rise since June 24, 2022. The Nasdaq was also up.

Monday’s bounce for the market could be a relief rally after the dramatic selling in September, but many technical strategists are skeptical that the market decline is over.

Economic Data Docket: The ISM was weaker than expected as was construction spending; manufacturers are reporting a growth in order books for the first time in four months in September while experiencing lower costs.

 

Largest volume of the session:

  • bluebird bio (BLUE) Monday traded 5.405 million shares (-$0.20) after Friday traded 7.516 million shares (+$0.63) <average 3 mo. volume = 8,279 million shares>

 

RegMed Investor’s (RMi) Pre-Open: “Q4 kicks off. A BIG week of economic data and a cautious tred for share pricing.” … https://www.regmedinvestors.com/articles/12631

 

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

  • Monday’s advance/decline line opened positive at 23 up/ 12 down and 0 flat, stayed positive with 20 up/15 down and 0 flat at the mid-day, ending with a positive close of 19/15 and 1 flat.

 

Pre-open Indications: 8 Hits < Biostage (OTCQB: BSTG -$0.71); Favorite (Agenus (AGEN +$0.04), Sage Therapeutics (SAGE +$0.43); Sell into Strength: < Regenxbio (RGNX -$2.26), Intellia Therapeutics (NTLA -$0.13); BUY < Beam Therapeutics (BEAM +$0.25), Caribou Biosciences (CRBU +$0.05), Solid Biosciences (SLDB +$0.0284)> 2 MISS < CRISPR Therapeutics (CRSP -$2.25), Verve Therapeutics (VERV -$0.940>   

 

Key Metrics:

  • Monday - Sector volume was LOW with 6 of the 19-upside having higher than the 3-month average volume with HIGHER volume of 7 of 15-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 up +1.95% and the XBI was up +0.83%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -1.52 points or -4.81% at 30.10

 

Jumping with share pricing momentum (10 of 19):

  • uniQure NV (QURE +$0.77 after Friday’s +$0.84),
  • Ionis Pharmaceuticals (IONS-$0.76 after Friday’s -$0.05),
  • Ultragenyx (RARE +$0.52 after Friday’s +0.86),
  • Sage Therapeutics (SAGE +$0.43 after Friday’s -$0.44),
  • Global Blood Therapeutics (GBT +$0.38),
  • Fate Therapeutics (FATE +$0.26),
  • Beam Therapeutics (BEAM +$0.25 after Friday’s +$0.14),
  • AxoGen (AXGN +$0.19 after Friday’s -$0.02),
  • Mesoblast (MESO +$0.185 after Friday’s -$0.04),
  • MiMedx (MDXG +$0.09 after Friday’s -$0.08)

Flat (1)

  • Brainstorm Cell Therapeutics (BCLI)

Closing down (10 of 15):

  • Alnylam Pharmaceuticals (ALNY -$3.37 after Friday’s -$9.23),
  • Regenxbio (RGNX -$2.26 after Friday’s +$1.51)
  • CRISPR Therapeutics (CRSP -$2.25 after Friday’s +$0.86),
  • Verve Therapeutics (VERV -$0.94 after Friday’s +$0.15),
  • Biostage (BSTG -$0.71 after Friday’s +$0.10
  • BioLife Solutions (BLFS -$0.58 after Friday’s -$0.92),
  • Vericel (VCEL -$0.37 after Friday’s -$0.55),
  • Voyager Therapeutics (VYGR -$0.29 after Friday’s -$0.09),
  • bluebird bio (BLUE -$0.20 after Friday’s +$0.63),
  • Intellia Therapeutics (NTLA -$0.13 after Friday’s +$0.67),

 

Q4 - October

  • Monday closed positive with 19 incliner, 15 decliners and 1 flat

 

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

Given today’s market dramatic ... the upside was driven by electronic trading and algorithm's "rules".

Let’s see what October brings – Q3 earnings LPS (loss-per-share) season and a whole lot of economic indicators.

October has NEVER been a good month for equities.

October has 1 positive close; September continued with 1 holiday, 11 positive and 11 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.