November 2, 2022 4:47pm
Followed by the small cap cell and gene therapy sector’s advance/decline line diving
Earnings: Editas Medicine (EDIT) had a Q3 net loss of -$55.7 million or -$0.81 per share with a cash position of $478.5 million and a 2024 runway. UniQure NV (QURE) had a Q3 net loss of -$47.9 million or -$1.02 per share with a cash position of $440.3 million and a Q1/25 runway. Ultragenyx Pharmaceuticals (RARE) had a Q3 net loss of -$245.1 million or -$3.50 per share with a cash position of $996.2 million and a 2025 runway. MiMedx (MDXG) had a Q3 net loss of -$8.4 million or -$0.09 per share with a cash position of $73.2 million and a runway until 2023
The Biostage (OTCQB: BSTG closed -$0.05 with 100 shares traded) Chronicles: SEC Form S-1/A filed Prospectus for unit offering … https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=117017206&type=HTML&formType=S-1%2FA&dateFiled=2022-10-27&cik=0001563665&CK=1563665&symbol=0001563665&companyName=Biostage ; A lot of issues in DRAFT prospectus - reliance on past financials?
It’s an honor to be considered the “canary in the (sector) coal mine”! I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths …
It’s more than opinion, the facts and truth need to be recognized! 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 DOWN -505.44 points (-1.55%), the S&P closed DOWN -96.41 points (-2.51%) while the Nasdaq closed DOWN -366.05 points (-3.36%)
Indexes fell Wednesday, as the major averages bounced between gains and losses in volatile trading following the Fed’s afternoon decision.
Federal Reserve Chair Jerome Powell said inflation was still too high and indicated that the central bank has more hiking ahead.
Most important words of Powell’s statement, “it was “premature” to talk about pausing hikes”.
Trading volume surged Wednesday after the Fed delivered its latest interest rate decision.
Economic Data Docket: Companies added 239,000 positions in October, ahead of the Dow Jones estimate of 195,000 and up slightly from the previous month, ADP reported Wednesday. Most of the gains came from the leisure and hospitality industry, which added 210,000 positions while wages rose 11.2% for the sector. Wages overall rose 7.7% from a year ago, down just slightly from the September pace.
Research Note: Compass Therapeutics (CMPX) files for a private investment in public equity (PIPE) financing to raise $80 million … https://www.regmedinvestors.com/articles/12680
RegMed Investor’s (RMi) Pre-Open: “bracing for Fed’s policy decision” … https://www.regmedinvestors.com/articles/12679
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened
- Wednesday’s advance/decline line opened negative at 9 up/ 24 down and 1 flat, stayed negative with x up/x down and 1 flat at the mid-day, ending with a negative close of 7/28 and 0 flat.
Pre-open Indications: 1 Hit < Biostage (OTCQB: BSTG -$0.05)>
- Wednesday - Sector volume was LOW with 5 of the 7-upside having higher than the 3-month average volume with LOW volume of 4 of 28-downside having higher than the 3-month average volume
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB was down -1.67% and the XBI was down -1.98%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was up +0.09points or +0.35% at 25.90
Jumping with share pricing momentum (7 of 7):
- CRISP Therapeutics (CRSP +$2.66 after Tuesday’s -$0.32 and Monday’s -$1.95),
- uniQure NV (QURE +$1.37),
- Alnylam Pharmaceuticals (ALNY +$1.23 after Tuesday’s +$5.86 and Monday’s +$2.75),
- Compass Therapeutics (CMPX +$0.36 and PIPE news after Tuesday’s +$0.26),
- Editas Medicine (EDIT +$0.14),
- Voyager Therapeutics (VYGR +$0.09),
- BioLife Solutions (BLFS +$0.03 after Tuesday’s +$0.49 and Monday’s +$0.19),
Closing down (10 of 28):
- Intellia Therapeutics (NTLA -$2.11 after Tuesday’s +$0.43 and Monday’s -$1.25),
- Verve Therapeutics (VERV -$1.86 after Tuesday’s -$1.26 after Monday’s -$3.00),
- Ultragenyx (RARE -$1.34 after Tuesday’s +$3.63 and Monday’s -$0.30),
- Sage Therapeutics (SAGE -$0.98),
- Fate Therapeutics (FATE -$0.95),
- Prime Therapeutics (PRME -$0.81 after Tuesday’s +$2.30 and Monday’s +$0.17),
- Vericel (VCEL -$0.78 after Tuesday’s +$0.49 and Monday’s +$0.53),
- Beam Therapeutics (BEAM -0.76 after Tuesday's +$0.30 after Monday’s -$4.68),
- AxoGen (AXGN -$0.52 after Tuesday’s -$0.25),
- Regenxbio (RGNX -$0.49 after Tuesday’s +$1.06),
Q4 - November
- Tuesday closed negative with 7 incliner, 28 decliners and 0 flat
- Monday closed positive with 26 incliner, 5 decliners and 4 flats
The BOTTOM LINE: I try to keep it simple … and short!
I keep repeating for effect, “Kenny Storch at BTIG, states there are 226 public biotech companies trading below cash currently. With 1 out of 5 in the Nasdaq Biotech Index trading below cash.” <I have also been stating the same theme!>
We will be seeing what October brings – Q3 earnings LPS (loss-per-share) season and a whole lot of economic indicators.
Q4 is HERE and we are back into Q3 earnings season which could be a minefield:
· Fate Therapeutics (FATE), Cellectis SA (CLLS), Sangamo Therapeutics (SGMO) and Regenxbio (RGNX) on Thursday, 11/3,
· AxoGen (AXGN) and Sage Therapeutics (SAGE) on 11/8,
· Ionis Pharmaceuticals (IONS) and Vericel (VCEL) on Wednesday, 11/9
If you have gains, you might want to lock-in profit if any … before earnings season begins!
DISPOSE Avrobio (AVRO) who experiences news (completion of dosing) on Thursday and Tuesday as the stock drops following a de-listing notice while the management DID NOTHING to AVOID this dilemma while president, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?
· AVRO closed down -$0.01 to $0.67 which STILL does NOT get close to the $1.00 to continue its Nasdaq listing after a delisting notice.
· AVRO’s 477h session of under $1.00,
· Will AVRO have to “commission" a stock reverse to address delisting?
· Or, will they “pull” an AGTC and get acquired by a shell?
Isn’t this Verastem Oncology’s (VSTM -$0.04 to $0.39); its 29th session of being UNDER $1.00 heading for de-listing under Nasdaq
As I continually question, “The real question that should be asked is how many companies are at the end of sentiments … leash?
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.