February 21, 2023 4:46pm

Sentiment is non-existent as even electronic trading and algos resist the capacity to interfere to prop the sector

Pre-open indications: 5 Hits and 0 Miss

News: Alnylam Pharmaceuticals (ALNY -$22.93 or -10.29%) even with news of the FDA has accepted for filing its supplemental New Drug Application (sNDA) for patisiran, an investigational RNAi therapeutic in development for the treatment of the cardiomyopathy of transthyretin-mediated (ATTR) amyloidosis. uniQure N.V. (QURE -$0.63) announced that its partner, CSL (ASX: CSL), has received conditional marketing authorization (CMA) from the European Commission for HEMGENIX® (etranacogene dezaparvovec), the first and only one-time gene therapy for the treatment of severe and moderately severe hemophilia B.

I write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others won’t say or write about - truth!  Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.

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 portfolio are largely tied to your knowledge of price movements and questioning pricing targets.

 

The Dow closed DOWN – 697.10 points (-2.06%); the S&P closed DOWN -81.75 points (-2%) while the Nasdaq closed DOWN -294.97 points (-2.50%)

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies

Indexes dropped Tuesday as higher rates continue to pressure sentiment, and the latest batch of retail earnings raised concern about the state of the consumer.

NYSE and Nasdaq volume surged well above Friday levels.

Economic Data Docket: U.S. existing home sales fell 0.7% to a seasonally adjusted 4 million units in January, reaching their lowest level in more than 12 years. They also declined for a 12th consecutive month.

·         February's IHS Markit Manufacturing index hit 47.8, higher than January's 46.9. The services reading also exceeds January's metrics, 50.5 vs. 46.8. The 50+ signals expansion, which won't make central bankers happy.

·         The Fed on Wednesday is scheduled to release the minutes from its meeting of 1/31 and 2/1. The central bank hiked rates by 25 basis points after that meeting.

 

News (continued): uniQure N.V. (QURE) -- HEMGENIX is approved for the treatment of adults with severe and moderately severe hemophilia B (congenital Factor IX deficiency) in adult patients without a history of Factor IX inhibitors. It is the first approved gene therapy for hemophilia B in the European Union (EU) and European Economic Area (EEA).

 

Tuesday’s … RegMed Investors’ (RMi) pre-open: “after a holiday and week of wupp’in. Will uncle “algo” salve the share pricing pain with his electronic friends and apply a share pricing bandage or let value bleed-out? …  https://www.regmedinvestors.com/articles/12841

 

Pre-open indications: 5 Hits <Alnylam Pharmaceuticals (ALNY -$22.93), Intellia Therapeutics (NTLA -$2.78), Verve Therapeutics (VERV -$2.11), Beam Therapeutics (BEAM -$3.82), uniQure NV (QURE -$0.63)> and 0 Miss

 

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

  • Tuesday’s advance/decline line opened negative at 3 up/ 31 down and 1 flat, stayed negative with 3 up/ 31 down and 1 flat at the mid-day, ending with a negative close of 3/31 and 1 flat
  • Monday was a market holiday

 

Key Metrics:

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

  • Tuesday, the IBB was down -2.79% and the XBI was down -4.64%
  • Monday was a holiday

The CBOE Volatility Index (VVIX: INDEX) tracked: illuminating the changes

  • Tuesday was up+1.58 points or +7.44% at 22.81
  • Monday was a holiday

 

Closing Down (10 of 31):

  • Alnylam Pharmaceuticals (ALNY -$22.93 after Monday’s holiday and Friday’s +$2.94),
  • CRISPR Therapeutics (CRSP -$4.26 after Monday’s holiday),
  • Beam Therapeutics (BEAM -$3.82 after Monday’s holiday and Friday’s -$3.36),
  • Ultragenyx (RARE -$3.21 after Monday’s holiday and Friday’s +$4.44),
  • Sage Therapeutics (SAGE -$2.79),
  • Intellia Therapeutics (NTLA -$2.78 after Monday’s holiday and Friday’s +$0.55),
  • BioLife Solutions (BLFS -$2.45 after Monday’s holiday and Friday’s +$0.88),
  • Verve Therapeutics (VERV -$2.11 after Monday’s holiday and Friday’s +$0.51),
  • Vericel (VCEL -$1.21 after Monday’s holiday and Friday’s +$0.96),
  • Editas Medicine (EDIT -$0.97),

Flat (1):

  • Biostage (OTCQB: BSTG)

Closing Up (3 of 3):

  • Cellectis SA (CLLS +$0.05 after Monday’s holiday and Friday’s -$0.16),
  • Adverum Biotechnologies (ADVM +$0.0265 after Monday’s holiday and Friday’s -$0.011),
  • Bellicum Pharmaceuticals (BLCM +$0.02 after Monday’s holiday and Friday’s -$0.06),

 

Q1/23 – February

  • Tuesday closed negative with 3 incliner, 31 decliners and 1 flat
  • Monday was a holiday
  • Friday closed positive with 28 incliner, 5 decliners and 2 flats

 

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

A very appropriate quote, “You don't do well by trying to be right; it is impossible for humans. You do well by figuring out when you're wrong faster than others do.” <Nassim Nicholas Taleb>

The lower the sector’s equities dive, divines their capacity to rebound!

Reiterating “Investors should recognize inflation may not return to normal levels begetting more volatility and DIPPING and CHOPPY sector share pricing.”

I do NOT believe there aren't a lot of cell/gene therapy companies in position yet – UNTIL earnings (Q4) are reported – any breakout is a false hope with the inevitable downside re-occurring.

Upcoming Q4 earnings reporting will present challenges to share pricing.

·         CRISPR Therapeutics (CRSP) - today

·         Ionis Pharmaceuticals (IONS) 2/22 – Wednesday

·         Editas Medicine (EDIT) 2/22 – Wednesday

·         Sangamo Therapeutics 2/22 - Wednesday

·         Alnylam Pharmaceuticals (ALNY) 2/23 – Thursday

·         Intellia Therapeutics (NTLA) 2/23 - Thursday

·         Vericel (VCEL) 2/23 – Thursday

·         Fate Therapeutics (FATE) 2/28- Tuesday

·         MiMedx (MDXG) 2/28 – Tuesday

·         Regenxbio (RGNX) 2/28 - Tuesday

If you thought of buying on weakness, you might be jumping onto a sinking ship.

 

There are clear losers today … Alnylam Pharmaceuticals (ALNY), CRSP Therapeutics (CRSP) and Beam Therapeutics (BEAM)

With winners … Adverum Biotechnologies (RARE), Cellectis SA (CLLS), and Bellicum Pharmaceuticals (BLCM)

 

Biostage (OTCQB: BSTG) – floating more pumps and promotes like Chinese “objects” suddenly appearing. WHY hasn’t the SEC “shot Biostage down?

Tuesday closed flat with 33 shares traded after Monday’s holiday following Friday also closed flat with 0 share traded, Thursday closed down-$0.10 with 1,414 shares traded, Wednesdays closed down -$0.09 with 2,676 shares traded and last Tuesday’s +$0.96 with 2,105 shares traded. <3-month average volume = 1,320 shares>

·         BSTG has “pulled” its proposed offering … “Withdrawal of Registration Statement on Form S-1 (File No. 333-265741)”

·         This IND – now almost 4 years old without a clinical trial that will last 3-5 years for ADULT patients before BSTG can EVEN consider a pediatric venue!

·         Question; is OTCQB: BSTG a Ponzi scheme (the pump/promote buy and sell agenda) as shares are bought to replace those sold??

 

My question that resounds, 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.