November 3, 2022 4:51pm
Earnings: Intellia Therapeutics (NTLA) 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. Regenxbio (RGNX) had a Q3 net loss of -$76.5 million or -$1.75 per share with a cash position of $617 million and a Q2/25 runway. Sangamo Therapeutics (SGMO) had a Q3 net loss of -$53.2 million or -$0.34 per share with a cash position of $350.3 million and a 2023 runway. Verastem Oncology (VSTM) had a Q3 net loss of -$18.1 million or -$0.09 per share with a cash position of $104.2 million and a 2023 runway (de-listing this week?)
News: Chinook Therapeutics (KDNY +$0.18) updated interim data from the IgAN patient cohort of the atrasentan P2 AFFINITY basket trial continue to demonstrate highly consistent and clinically meaningful proteinuria reductions in patients with IgAN already on a maximally tolerated and stable dose of a RAS inhibitor.” < ASN Kidney Week 2022 being held virtually and live in Orlando, Florida>
Indication Results: 6 Hits and 1 Miss
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 -146.51 points (-0.46%), the S&P closed DOWN -39.81 points (-1.06%) while the Nasdaq closed DOWN -181.86 points (-1.73%)
Indexes were flopping down on Thursday, building on Wednesday’s losses after the Fed delivered another .75-point interest rate hike and signaled that NO pivot or rate CUT will come anytime soon.
Yields spiked as traders digested the latest rate decision, putting pressure on equities. The yield on the 2-year Treasury note hit its highest level since July 2007 while the benchmark 10-year Treasury yield popped 8 basis points to 4.141%. <CNBC>
Volume was down on the Nasdaq faring worst of the major indexes; also, with the Russell 2000 down -0.3%.
Another sign of the times, Rubius Therapeutics (RUBY) is crashing down -$0.02 to $0.32; “initiated a process to explore a range of strategic alternatives and plans to engage an investment bank to act as a strategic advisor for this process” a.k.a. – done having reduced its workforce by 84%. As it joins AGTC and the coming dive of AVRO!
Economic Data Docket: The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, providing further evidence of a strong labor market. Another set of data on Thursday showed the U.S. services industry grew at its slowest pace in nearly 2-1/2 years in October and businesses continued to face higher input prices, confirming that inflation was shifting to services from goods. <Reuters>
RegMed Investor’s (RMi) Pre-Open: “gains followed by pain; so, what’s on-tap – earnings. After a volatile daily session, the cell and gene therapy sector will likely continue to seesaw until it is clear that earnings have cooled-off share pricing.” … https://www.regmedinvestors.com/articles/12682
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened
- Thursday’s advance/decline line opened negative at 9 up/ 24 down and 1 flat, stayed negative with 7 up/ 28 down and 0 flat at the mid-day, ending with a negative close of 12/23 and 0 flat.
Pre-open Indications: 6 Hit < Biostage (OTCQB: BSTG -$0.09), Regenxbio (RGNX -$3.19), AxoGen (AXGN +$0.04), uniQure NV (QURE -$0.54), Fate Therapeutics (FATE -$0.59), Sage Therapeutics (SAGE -$0.27)> 1 Miss< Verve Therapeutics (VERV -$2.26)>
- Thursday - Sector volume was LOW with 2 of the 12-upside having higher than the 3-month average volume with LOW volume of 5 of 23 downside having higher than the 3-month average volume
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Thursday, the IBB was up +0.44% and the XBI was down -0.68%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was down -0.66 points or -2.55% at 25.20
Jumping with share pricing momentum (12 of 12):
- Alnylam Pharmaceuticals (ALNY +$1.37 after Wednesday’s +$1.23, Tuesday’s +$5.86 and Monday’s +$2.75),
- Intellia Therapeutics (NTLA +$0.51 after Wednesday’s -$2.11, Tuesday’s +$0.43 and Monday’s -$1.25),
- Beam Therapeutics (BEAM +40.41 after Wednesday’s -0.76, Tuesday’s +$0.30 and Monday’s -$4.68),
- BioLife Solutions (BLFS +$0.28 after Wednesday’s +$0.03, Tuesday’s +$0.49 and Monday’s +$0.19),
- Compass Therapeutics (CMPX +$0.21 after Wednesday’s +$0.36 and PIPE news after Tuesday’s +$0.26),
- MiMedx (MDXG +$0.15),
- Mesoblast (MESO +$0.11),
- Precigen (PGEN +$0.06),
- AxoGen (AXGN +$0.04 after Wednesday’s -$0.52 after Tuesday’s -$0.25),
- Agenus (AGEN +$0.03),
- Verastem (+$0.0076),
Closing down (10 of 23):
- Regenxbio (RGNX -$3.19 after Wednesday’s -$0.49 and Tuesday’s +$1.06),
- Ultragenyx (RARE -$2.42 after Wednesday’s -$1.34, Tuesday’s +$3.63 and Monday’s -$0.30),
- Verve Therapeutics (VERV -$2.26 after Wednesday’s -$1.86, Tuesday’s -$1,26 after Monday’s -$3.00),
- Prime Therapeutics (PRME -$1.67 after Wednesday’s -$0.81, Tuesday’s +$2.30 and Monday’s +$0.17),
- CRISP Therapeutics (CRSP -$1.44 after Wednesday’s +$2.66, Tuesday’s -$0.32 and Monday’s -$1.95),
- Editas Medicine (EDIT -$1.22 after Wednesday’s +$0.14),
- Fate Therapeutics (FATE -$0.59 after Wednesday’s -$0.95),
- uniQure NV (QURE -$0.54 after Wednesday’s +$1.37),
- Sage Therapeutics (SAGE -$0.27 after Wednesday’s -$0.98),
- Ionis Pharmaceuticals (IONS -$0.19),
Q4 - November
- Thursday closed negative with 12 incliner, 23 decliners and 0 flat
The BOTTOM LINE: I try to keep it simple … and short!
I keep repeating a “mantra” 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:
· 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) 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 -$0.001 to $0.67 which STILL does NOT get close to the $1.00 to continue its Nasdaq listing after a delisting notice.
· AVRO’s 487h 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 -$0.0076 to $0.39); its 30th 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.