December 7, 2022 4:37pm

Selling pressures continue as cell and gene therapy sector struggles again to the downside

The Biostage (OTCQB: BSTG) Chronicles:  the pump/promote keeps adds +$0.27 with 3,138 shares traded (3-month average volume = 2,212 shares). Question how can Hong Yu, president of BSTG and head of DST Capital manage the share pricing without SEC oversight of inflows of Beijing, Chinese capital?

News: Avrobio (AVRO -$0.0585 or -6.96%) positive news stimulated share pricing to DUMP as de-listing continues with $250 million follow-on offering in the wings by Cowen. Biogen (BIIB) and partner Sage Therapeutics (SAGE) completed the rolling submission of the new drug application (NDA) to the FDA for zuranolone for the potential treatment of major depressive disorder (MDD) and postpartum depression (PPD) as SAGE drops -$0.97 or -2.33%

Pre-open Indications: 3 Hits and 1 Miss

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 +1.58 points (+0.00%), the S&P close DOWN -7.34 points (-0.19%) while the Nasdaq closed DOWN -56.34 points (-0.51%)

 

Henry’omics:

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

Indexes fell in a choppy session Wednesday as traders weighed the possibility of a recession, and the likelihood of a longer-than-expected hiking cycle from the Fed.

A likely quote, “The market’s kind of bobbing and weaving and finding its breath after the big rally off the October lows. He expects markets to continue this trend until investors receive more clarity from the Fed’s December policy meeting and November’s CPI report.” <Ryan Detrick, chief market strategist at the Carson Group>

Another quote of relevance,“Worries about a recession in 2023 have spooked some investors in recent days, inflation could force the economy into a recession.” <JPMorgan Chase’s CEO Jamie Dimon telling CNBC’s “Squawk Box”>

Jobless claims data is due out Thursday, followed by November’s producer price index and consumer sentiment on Friday.

Indexes are on pace for weekly losses, with the Dow down -2.5%, the S&P -3.5% and Nasdaq off by -4.5%,

 

Monday’s … RegMed Investor’s (RMi) Pre-Open: “shareholders have had a “rough ride” lately. A weak aftermarket; will algorithms influence advances to an improved cell and gene therapy sector condition?” … https://www.regmedinvestors.com/articles/12733

 

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 13 up/ 23 down and 0 flats, flipped positive with 18 up/ 16 down and 1 flat at the mid-day, ending with a negative close of 16/19 and 0 flat.

 

Pre-open indication results: 3 Hit <Verve Therapeutics (VERV +$0.35), Solid Biosciences (SLDB +$0.29), Beam Therapeutics (BEAM +$0.92)> and 1 Miss < Sage Therapeutics (SAGE -$0.97)   

 

Key Metrics:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB was up +0.66% and the XBI was up +0.63%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.42 points or +1.89% at 22.59

 

Closing Down (10 of 19):

  • Sage Therapeutics (SAGE -$0.97 after Tuesday’s -$1.91),
  • Intellia therapeutics (NTLA -$0.93 after Tuesday’s -$3.03 after Monday’s -$4.11),
  • Prime Therapeutics (PRME -$0.64 after Tuesday’s -$0.74 after Monday’s +$0.86),
  • uniQure NV (QURE -$0.51 after Tuesday’s -$1.41),
  • Mesoblast (MESO -$0.21),
  • Voyager Therapeutics (VYGR -$0.21),
  • CRISPR Therapeutics (CRSP -$0.17 after Tuesday’s -$1.33 and Monday’s -$2.39),
  • Compass Therapeutics (CMPX -$0.15 after Tuesday’s +$0.12)
  • Regenxbio (RGNX -$0.11),
  • Agenus (AGEN -$0.09),

Closing Up (10 of 19):

  • Alnylam Pharmaceuticals (ALNY +$11.69 after Tuesday’s -$6.56 and Monday’s -$8.20),
  • Chinook Therapeutics (KDNY +$0.98),
  • Beam Therapeutics (BEAM +$0.92 after Tuesday’s -$1.19 and Monday’s -$2.45),
  • BioLife Solutions (BLFS +$0.41 after Tuesday’s +$0.07 and Monday’s -$3.03),
  • Vericel (VCEL +$0.38),
  • Solid Biosciences (SLDB +$0.29),
  • Editas Medicine (EDIT +$0.29),
  • Ultragenyx (RARE +$0.29 after Tuesday’s -$0.61),
  • Biostage (OTCQB: BSTG +$0.27 after Tuesday’s +$0.15),

 

Q4 – December

  • Wednesday closed negative with 16 incliner, 19 decliners and 0 flat

 

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

The cell and gene therapy sector extended its losses on Tuesday, again.

As the glow comes off the sector of the past years rapidly fades, I believe the sector will become more focused on the status of clinicals, share pricing and guidance from management teams who have FORGOTTEN the investors while focused on lining their own pockets with OUTSIZED G&A “obligations”. Communication MUST will be driven by a constant out-reach to individual investors.

Volume rose on the Nasdaq versus the same time on Monday.

Just 17 trading days remain in 2022.

One aspect driving this market and conversely the cell and gene therapy sector – FEAR of more Fed rate hikes; the probability the Fed will raise rates by 0.5% in its meeting next week is pegged at 77%, while odds for a 75-basis-point hike are 23%.

At any given time, not many stocks are flashing buy signals, while shakeouts and sector rotations can make holding onto positions difficult.

Avrobio (AVRO closed down again -$0.0585 after Tuesday’s -$0.0489 to $0.83, Monday’s +$0.0169 and Friday’s -$0.0228) filed a S-3 for $250 million common stock, preferred stock, debt securities, warrants and unit offering within draft prospectus by Cowen as stock sinks while delisting continues? Just another “screw-job” of investors! < Read, SELL and Weep - see hyperlink below> Avrobio (AVRO) files S-3 (Registration Statement) for offering with draft prospectus by Cowen … https://investors.avrobio.com/node/9116/html

·         Also, RA Capital has sold its position in the company – a sign of dissatisfaction!

·         President, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?

As I continually question, “The real question that should be asked is how many companies are at the end of sentiments …  leash?

 

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.