November 17, 2022 4:46pm

The objective of "skipping" is to see how many times a stock can bounce before it sinks; the objective of "skimming" is to see how far a bouncing share price can travel across the sector before it sinks in the market

Indication Results: 3 Hits, 1 Miss and 1 Pump/Promote

News: Editas Medicine (EDIT -$1.24) will put a wrap on its lead clinical program after reporting disappointing results from a P1/2 trial with only three of 14 patients responded to the therapy, known as EDIT-101 designed to treat an inherited form of blindness called CEP290-mediated LCA10.

The Biostage (OTCQB: BSTG) Chronicles: they’re at it again, the pump/promote volume and share pricing which started -$0.15 and closed +$0.35 with 2,942 shares traded

It’s an honor to be considered the “canary in the (sector) coal mine”! 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 -6.46 points (-0.02%), the S&P closed DOWN -11.97 points (-0.30%) while the Nasdaq closed DOWN -38.70 points (-0.35%)

 

Henry’omics:

We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes fell Thursday and bond yields jumped as Fed officials signaled their rate-hiking campaign to slow inflation is far from over.

Economic Data Docket: “Investors weighed comments from St. Louis Federal Reserve President James Bullard, who said in a speech Thursday that “the policy rate is not yet in a zone that may be considered sufficiently restrictive.” The change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023,” added Bullard.

  • The four-week moving average for initial jobless claims hit its highest level since Sept. 10. Meanwhile, continuing claims reached its highest point since March. Initial jobless claims were 222,000 for the week ending Nov. 12, a drop of 4,000 from the prior week’s adjusted 226,000 claims. Continuing jobless claims reached 1.507 million for the week of Nov. 5, up from the prior week’s revised 1.494 million claims. It’s the highest level since Mar. 26 when continuing claims were 1.529 million

 

Thursday’s … RegMed Investor’s (RMi) Pre-Open: “following the market outlook and bouncing share pricings. Ain’t easy and sometimes not productive yet, it’s better than doing nothing” … https://www.regmedinvestors.com/articles/12705

 

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 5 up/ 29 down and 1 flat, stayed negative with 6 up/ 28 down and 1 flat at the mid-day, ending with a negative close of 9/24 and 2 flats.

 

Pre-open Indications: 3 Hit <Alnylam Pharmaceuticals (ALNY -$2.87), CRISPR Therapeutics (CRSP -$1.12), Prime Medicine (PRME +$1.58)> 1 Miss < Avrobio (AVRO +$0.04)> 1 Pump/Promote <Biostage (OTCQB: BSTG +$0.35)>

 

Key Metrics:

  • Thursday - Sector volume was HIGH with 5 of the 9-upside having higher than the 3-month average volume with LOW volume of 8 of 24-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 down – 0.69% and the XBI was down -1.17%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.19 points or -0.78% at 23.92

 

Jumping with share pricing momentum (9 of 9):

  • Prime Therapeutics (PRME +$1.58 after Wednesday’s -$1.98, Tuesday’s +$0.59 and Monday’s -$1.51)
  • uniQure NV (QURE +$0.57),
  • Ionis Pharmaceuticals (IONS +$0.35),
  • Biostage (OTCQB: BSTG +$0.35 after Wednesday’s $0.00, Tuesday’s -$0.60 and Monday’s +$0.71),
  • Regenxbio (RGNX +$0.130,
  • Adverum Biotechnologies (ADVM +$0.07),
  • Avrobio (AVRO +$0.04 after Wednesday’s +$0.0016),
  • Precigen (PGEN +$0.02),
  • Verastem oncology (VSTM +$0.0012)

Closing down (10 of 24):

  • Alnylam Pharmaceuticals (ALNY -$2.87 after Wednesday’s -$2.30, Tuesday’s +$0.81 and Monday -$2.89),
  • Intellia Therapeutics (NTLA -$1.55 after Wednesday’s -$2.38, Tuesday’s -$0.38 and Monday’s -$1.65),
  • Verve Therapeutics (VERV -$1.52 after Wednesday’s -$1.27, Tuesday’s -$0.29 and Monday’s -$0.65),
  • BioLife Solutions (BLFS -$1.43 after Wednesday’s -$1.92, Tuesday’s +$1.38 and Monday’s -$1.85),
  • Vericel (VCEL -$1.35 after Wednesday’s -$0.86, Tuesday’s +$0.19 and Monday’s -$0.71),
  • Editas Medicine (EDIT -$1.24),
  • CRISPR Therapeutics (CRSP -$1.12 after Wednesday’s -$2.25 and Tuesday’s +$1.23),
  • Fate Therapeutics (FATE -$0.50 after Wednesday’s -$1.67),
  • Beam Therapeutics (BEAM -$0.45 after Wednesday’s -$1.39, Tuesday’s -$0.56 and Monday’s -$1.19),
  • Chinook Therapeutics (KDNY -$0.24 after Wednesday’s +$0.08, Tuesday’s -$0.36 and Monday’s +$0.24),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • MiMedx (MDXG)

 

Q4 – November

  • Thursday closed negative with 9 incliner, 24 decliners and 2 flats
  • Wednesday closed negative with 5 incliner, 29 decliners and 1 flat
  • Tuesday closed positive with 21 incliner, 14 decliners and 0 flat
  • Monday closed negative with 13 incliner, 21 decliners and 1 flat

 

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

“Health care is outperforming other S&P 500 sectors as investors continue moving into defensive sectors with steady earnings. Though all sectors traded down Thursday, health care was performing the best, shedding just 0.5%. It’s up 9% so far this quarter, a reprieve from the overall drop its seen of 6.4% since the start of 2022.” <Alex Harring, CNBC>

Reiterating, “It is difficult to predict where the cell and gene therapy sector is headed in the short run.”

In “our’ universe of cell and gene therapy, we are betting on the hope for a cure or a treatment but, we are dependent on the management team to represent our hopes and aspirations. 

I would also note the VIX (fear gauge) is “flighty” in volatility, as volume does NOT fit into this paradigm implying the potential for some lessening sessions.

Key word, uncertainty … today's session resounds with sentiment issues and an extremely risk adverse investor psychology

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!>

CEO salaries, spending the G&A are totally OUT-OF-WHACK; these are companies are in the development stage and will be for years without products in most cases not like the tech companies, whose CEOs and management teams think they should be compared to for bi-weekly cash and “beanies”!

If you have gains, you might want to lock-in profit if any …!

 

Avrobio (AVRO) lives 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 up +$0.04 after Wednesday’s +$0.0016, Tuesday’s -$0.03 and Monday’s -$0.03 which STILL does NOT get close to the $1.00 to continue its Nasdaq listing after a delisting notice.

·         AVRO’s 58th session of under $1.00,

·         Will AVRO have to “commission" an offering to relieve the delisting?

Avrobio (AVRO) files S-3 (Registration Statement) for offering with draft prospectus by Cowen … https://investors.avrobio.com/node/9116/html

•             A SCREW-JOB for early and present investors ...

Isn’t this Verastem Oncology’s (VSTM closed barely up +$0.0012 after Wednesday’s -$0.0186, Tuesday’s +$0.0072 and Monday’s -$0.02 after last Friday’s +$0.01 …

Isn’t it VSTM’s 40th 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.