December 29, 2022 4:43pm
The share pricing scars still exist as volume remains mostly low with only one (1) decliner – a usual suspect – Biostage (OTCQB: BSTG). Is it Beijing, China’s “plant’ in U.S.’ biotech universe?? Question should need an answer?
News: Vericel Corporation (VCEL +$1.22) and its partner, MediWound (MDWD +$0.51) the U.S. FDA has approved NexoBrid® (anacaulase-bcdb) for the removal of eschar in adults with deep partial-thickness and/or full-thickness thermal burns. Triggering a $7.5 million milestone payment to MDWD from VCEL; NexoBrid will launch in the U.S. in Q2/23
Pre-open Indications: 1 Hit and 1 Miss
Why do I keep writing this blog/newsletter; to educate and inform investors, what others won’t say or write. That means trades that didn't move the market before are now creating more volatility.
Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!
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 +345.09 points (+1.05%), the S&P closed UP +66.06 points (+1.75%) while the Nasdaq closed UP +264.80 points (+2.59%)
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes jumped on Thursday, as investors headed into the final trading days of 2022.
The Dow and S&P are slightly higher for the week, while the Nasdaq is on track for a 0.1% loss.
A telling quote, “We were overdue for a rebound, and a lot of the recent weakness may be explained by further tax loss selling once the Santa Rally didn’t materialize,” he said. “We’ll have further volatility into the new year with plenty of uncertainty about whether a soft landing is possible and if not how much resolve the Fed will have to not pivot if we tip into a serious recession.” <CNBC>
Economic Data Docket: The Labor Department reported an increase in jobless claims from last week, amid Fed’s efforts to cool the economy and in particular the labor market. First-time filings for unemployment benefits totaled 225,000 for the week ended Dec. 24, according to the report. That was an increase of 9,000 from the previous week and slightly above the 223,000 estimate.
Thursday’s … RegMed Investor’s (RMi) Pre-Open: “risk-on/risk-off sessions based on market’s insecurity, sector’s pricing uncertainty in an overcrowded universe. Final two (2) days as recession fears weigh on investor sentiment post a losing session, week, month and year.” … https://www.regmedinvestors.com/articles/12763
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/ 4 down and 0 flat, stayed positive with 34 up/ 1 down and 0 flat at the mid-day, ending with a positive close of 33/1 and 1 flat.
Pre-open indications: 1 Hits < CRISPR Therapeutics (CRSP +$1.14)> 1 Miss <Verve Therapeutics (VERV +$0.83)>
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Thursday, the IBB was up +2.30% and the XBI was up +4.36%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was down -0.74 points or -3.34% at 21.40
Closing Down (1 of 1):
- Biostage (OTCQB: BSTG -$1.62 after Wednesday’s +$0.83 and Tuesday’s $0.00),
- Mesoblast (MESO)
Closing Up (10 of 33):
- Alnylam Pharmaceuticals (ALNY +$6.43 after Wednesday’s -$0.69, Tuesday’s -$5.59 and Monday’s holiday),
- Ultragenyx (RARE +$1.98 after Wednesday’s -$0.65),
- Intellia Therapeutics (NTLA +$1.82 after Wednesday’s +$0.25, Tuesday’s -$1.77 and Monday’s holiday),
- Prime Medicine (PRME +$1.41 after Wednesday’s +$0.28, Tuesday’s +$0.30 and Monday’s holiday),
- Vericel (VCEL +$1.22 after Wednesday’s +$0.70),
- BioLife Solutions (BLFS +$1.19 after Wednesday’s -$0.21),
- CRISPR Therapeutics (CRSP +$1.14 after Wednesday’s -$1.82, Tuesday’s -$3.08 and Monday’s holiday),
- Sage Therapeutics (SAGE +$1.12),
- Regenxbio (RGNX +$1.05 after Wednesday’s -$0.17),
- Verve Therapeutics (VERV +$0.83 after Wednesday’s +$0.16),
Q4 – December
- Thursday closed positive with 33 incliners, 1 declined and 1 flat
- Wednesday closed negative with 14 incliner, 19 decliners and 0 flat
- Tuesday closed negative with 1 incliner, 33 decliners and 1 flat
- Monday was a market holiday
The BOTTOM LINE: I try to keep it simple … and short!
The year's tax-loss selling season is coming to an end, ahead of next week's clean slate. Hopefully, the January Effect will then kick into gear, lifting this year's biggest losers off 52-week and multiyear lows. <IBD>
There are VERY clear winners … Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE) and Beam Therapeutics (BEAM)… With losers … Biostage (OTCQB: BSTG) and Bellicum Pharmaceuticals (BLCM) fell to the wayside.
Be prepared … just 1 trading day remains in 2022.
The biggest issue for the New Year will be the cloud of recession overhanging the economy, market volatility that affects and effects our universe of cell and gene therapy sector equities
Avrobio (AVRO closed up +$0.0390 with 106,906 shares traded after Wednesday’s -$0.0329 with 260,233 shares traded after Tuesday’s -$0.0341 with 151,542 shares traded, Monday’s holiday and Friday’s-$0.0247 with 128,956 shares traded after Thursday’s -$0.0068 with 121,246 shares traded, Wednesday’s +$0.0001 with 607,023 shares traded, Tuesday’s +$0.0295 with 361,951 shares traded
Says a lot of addressing the delisting issue) as volume WORKS against AVRO 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!
· While, President, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?
Biostage (OTCQB: BSTG) closed down -$1.62 to $5.01 with 2,645 shares traded after Wednesday’s +$0.83 with 550 shares traded, Tuesday’s flat with 117 shares traded after Monday’s holiday.
· This IND – now almost 4 years old without a clinical trial will last 3-5 years for ADULT patients before BSTG can EVEN consider a pediatric venue!!
“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.