December 8, 2022 5:47pm

Comment: Avrobio (AVRO +$0.00) keeps investors GUESSING as they don’t address de-listing hoping for a “possible” $250 million offering by Cowen, as CEO Jeff MacKay flips-off and forgets individual investors who got and kept him in control – NEW CEO needed, bring back Dr. Chris Mason!

News: MiMedx Group (MDXG +$0.05) has licensed worldwide exclusive rights to Turn Therapeutics’ proprietary antimicrobial technology platform, PermaFusion®, for the development of future biologic products focused on wound and surgical recovery applications - a meaningful expansion of our product development pipeline.

Pre-open Indications: 2 Hits and 3 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 +183.56 points (+0.55%), the S&P close UP +29.59 points (+0.75%) while the Nasdaq closed UP +123.45 points (+1.13%)

 

Henry’omics:

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

Indexes rose Thursday as the S&P 500 cracked a losing streak and the possible high odds of a recession

Despite Thursday’s gains, the Dow down -1.88%, the S&P -2.68% and the Nasdaq -3.31%.

An on-target quote, “We had a strong selloff over the last few days and it doesn’t take much to create even the underpinnings for a modest rally referring to Thursday’s jobless claims — specifically continuing claims —as the likely catalyst. <Quincy Krosby, LPL Financial’s chief global strategist>

The data showed a modest uptick in claims. Continuing claims hit their higher level since February, a slight move in the right direction for the economy that could further fuel the narrative that the labor market needs to break in order for the Fed to successfully tamp down inflation.

Economic Data Docket: New applications for unemployment benefits increased last week, evidence the tight labor market is starting to loosen as the Fed raises interest rates.

  • Jobless claims showed a slight bounce higher last week to 230,000, which was exactly in line with the estimate. The total for the week ended Dec. 3 represented an increase of 4,000 from the previous period and also matched the four-week moving average computed to smooth out weekly volatility.
  • Continuing claims, which run a week behind, rose 62,000 to 1.671 million, an increase of 62,000 to the highest level since Feb. 5.
  • Next week’s November consumer price index should also provide more clarity on the direction of inflation.
  • The cost of financing a home has ticked lower for a fourth consecutive week, according to Freddie Mac. The weekly average rate on a 30-year mortgage is now 6.33%, down from 6.49% last week. Over the past month, the interest rate on these loans has come down about 75 basis points: On Nov. 10, the average rate on a fixed 30-year mortgage was 7.08%. <CNBC>

 

Thursday’s … RegMed Investor’s (RMi) Pre-Open: “climbing the wall of worry. December’s rolls, 4 negative and 1 positive close, with another weak aftermarket.” … https://www.regmedinvestors.com/articles/12735

 

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

  • Thursday’s advance/decline line opened positive at 31 up/ 2 down and 2 flats, stayed positive with 22 up/ 13 down and 0 flat at the mid-day, ending with a positive close of 23/11 and 1 flat.

 

Pre-open indication results: 2 Hit < Intellia therapeutics (NTLA +$0.30), Chinook Therapeutics (KDNY -$0.71)> and 3 Miss < CRISPR Therapeutics (CRSP -$0.11), Sage Therapeutics (SAGE -$1.16), Beam Therapeutics (BEAM +$0.59)>  

 

Key Metrics:

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

  • Thursday, the IBB was up +1.31% and the XBI was up +0.60%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.39 points or -1.72% at 22.29

 

Closing Down (11 of 11):

  • Sage Therapeutics (SAGE -$1.16 after Wednesday’s -$0.97 and Tuesday’s -$1.91),
  • Chinook Therapeutics (KDNY -$0.71 after Wednesday’s +$0.98),
  • uniQure NV (QURE -$0.65 after Wednesday’s -$0.51 and Tuesday’s -$1.41),
  • Ionis Pharmaceuticals (IONS -$0.20),
  • Biostage (OTCQB: BSTG -$0.16 after Wednesday’s +$0.27 and Tuesday’s +$0.15),
  • Solid Biosciences (SLDB -$0.12 after Wednesday’s +$0.29),
  • CRISPR Therapeutics (CRSP -$0.11 after Wednesday’s -$0.17, Tuesday’s -$1.33 and Monday’s -$2.39),
  • Caribou Biosciences (CRBU -$0.11),
  • bluebird bio (BLUE -$0.10),
  • Brainstorm Cell Therapeutics (BCLI -$0.08),
  • Adverum Biotechnologies (ADVM -$0.12),

Flat (1):

  • Precigen (PGEN)

Closing Up (10 of 23):

  • Alnylam Pharmaceuticals (ALNY +$6.68 after Wednesday’s +$11.69, Tuesday’s -$6.56 and Monday’s -$8.20),
  • Ultragenyx (RARE +$1.70 after Wednesday’s +$0.29 and Tuesday’s -$0.61),
  • Verve therapeutics (VERV +$0.69),
  • BioLife Solutions (BLFS +$0.41 after Tuesday’s +$0.07 and Monday’s -$3.03),
  • Beam Therapeutics (BEAM +$0.59 after Wednesday’s +$0.92, Tuesday’s -$1.19 and Monday’s -$2.45),
  • Prime Therapeutics (PRME +$0.43 after Wednesday’s -$0.64, Tuesday’s -$0.74 after Monday’s +$0.86),
  • Vericel (VCEL +$0.42 after Wednesday’s +$0.38),
  • BioLife Solutions (BLFS +$0.42),
  • Intellia therapeutics (NTLA +$0.30 after Wednesday’s -$0.93, Tuesday’s -$3.03 after Monday’s -$4.11),
  • Compass Therapeutics (CMPX +$0.21 after Wednesday’s -$0.15 and Tuesday’s +$0.12)
  • Voyager Therapeutics (VYGR +$0.17 after Wednesday’s -$0.21),

 

Q4 – December

  • Thursday closed positive with 23 incliner, 11 decliners and 1 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 even more focused on the status of clinicals, patient recruitment, interim results, share pricing and guidance from management teams who have FORGOTTEN individual 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 16 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 BARELY up +$0.0035 after Wednesday’s -$0.0585, Tuesday’s -$0.0489 to $0.83, Monday’s +$0.0169 and last Friday’s -$0.0228) having 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.