February 22, 2023 4:58pm
Many of the cell and gene therapy share pricing suffer from short-term earnings releases as selling hangs around after Tuesday's sector market sell-off
Pre-open indications: 5 Hits and 3 Miss
News: Sangamo Therapeutics (SGMO -$0.54) updated preliminary data as of the 10/20/22 cutoff date from the P1/2 STAAR clinical study evaluating isaralgagene civaparvovec, or ST-920 for the treatment of Fabry disease. These data, which present new biomarker data and results from the first kidney biopsies in this study, indicate evidence of clinical benefit for isaralgagene civaparvovec in Fabry disease.
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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 -84.50 points (-0.26%); the S&P closed DOWN -6.29 points (-0.16%) while the Nasdaq closed UP +14.77 points (+0.13%)
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 fell Wednesday as investors listened to Fed’s minutes … “inflation data received over the past three months showed a welcome reduction in the monthly pace of price increases but stressed that substantially more evidence of progress across a broader range of prices would be required to be confident that inflation was on a sustained downward path.”
Volume fell on the Nasdaq and the NYSE compared with the same time on Tuesday.
Economic Data Docket: Fed minutes
- Fed officials at their most recent meeting indicated that there are signs inflation is coming down, but not enough to counter the need for more interest rate increases
RegMed Investors (RMi) Research Note: Q4 and FY22 earnings reporting … https://www.regmedinvestors.com/articles/12843
RegMed Investors (RMi) Research Note: Upcoming Q4 earnings reporting dates … https://www.regmedinvestors.com/articles/12830
Wednesday’s … RegMed Investors’ (RMi) pre-open: “pick-up a few of the oversold while we wait again for Jerome’s minutes.” … https://www.regmedinvestors.com/articles/12844
Pre-open indications: 5 Hits < Vericel (VCEL -$0.09), BioLife Solutions (BLFS +$1.26), CRISPR Therapeutics (CRSP +$3.75), Regenxbio (RGNX +$0.91), Ultragenyx Pharmaceuticals (RARE +$0.66)> and 3 Miss <Beam Therapeutics (BEAM +$1.47), Sage Therapeutics (SAGE -$0.54), uniQure NV (QURE -$0.19)>
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened – differences
- Wednesday’s advance/decline line opened positive at 18 up/ 16 down and 1 flat, stayed positive with 20 up/ 10 down and 5 flats at the mid-day, ending with a positive close of 19/15 and 1 flat
Key Metrics:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB was down -0.19% and the XBI was up +1.10%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -0.30 points or -1.31% at 22.57
Closing Down (10 of 15):
- Ionis Pharmaceuticals (IONS -$1.43) – earnings
- Sage Therapeutics (SAGE -$0.54 after Tuesday’s -$2.79 and Monday’s holiday),
- Chinook Therapeutics (KDNY -$0.46),
- Prime Medicine (PRME -$0.23),
- uniQure NV (QURE -$0.19),
- Solid Biosciences (SLDB -$0.11),
- Vericel (VCEL -$0.09 after Tuesday’s -$1.21 and Monday’s holiday),
- Homology Medicine (FIXX -$0.06),
- Voyager Therapeutics (VYGR -$0.06),
- Cellectis SA (CLLS -$0.035 after Tuesday’s +$0.05 and Monday’s holiday),
Flat (1):
- Biostage (OTCQB: BSTG)
Closing Up (10 of 19):
- CRISPR Therapeutics (CRSP +$3.75 after Tuesday’s -$4.26 and Monday’s holiday),
- Beam Therapeutics (BEAM +$1.47 after Tuesday’s -$3.82 and Monday’s holiday),
- Intellia Therapeutics (NTLA +$1.34 after Tuesday’s -$2.78 and Monday’s holiday),
- BioLife Solutions (BLFS +$1.26 after Tuesday’s -$2.45 and Monday’s holiday),
- Alnylam Pharmaceuticals (ALNY +$1.24 after Tuesday’s -$22.93 and Monday’s holiday),
- Verve Therapeutics (VERV +$1.01 after Tuesday’s -$2.11 and Monday’s holiday),
- Regenxbio (RGNX +$0.91 after Tuesday’s +$1.18 and Monday’s holiday),
- Ultragenyx (RARE +$0.66 after Tuesday’s -$3.21 and Monday’s holiday),
- Editas Medicine (EDIT+$0.57 after Tuesday’s -$0.97 and Monday’s holiday),
- Fate Therapeutics (FATE +$0.28),
Q1/23 – February
- Wednesday closed positive with 19 incliner, 15 decliners and 1 flat
- Tuesday closed negative with 3 incliner, 31 decliners and 1 flat
- Monday was a holiday
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.
· 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 … Ionis Pharmaceuticals (IONS), Sage therapeutics (SAGE) and Chinook Therapeutics (KDNY)
With winners … CRSP Therapeutics (CRSP), Intellia therapeutics (NTLA) and Beam Therapeutics (BEAM)
Biostage (OTCQB: BSTG)
Wednesday closed flay again with 5 shares traded after Tuesday closed flat with 33 shares traded, Monday’s holiday following Friday also closed flat with 0 share traded, Thursday closed down-$0.10 with 1,414 shares traded and last Wednesdays closed down -$0.09 with 2,676 shares traded. <3-month average volume = 1,320 shares>
· David Green, CEO and Chairman of Board did accomplish ONE THING – he was able to shift LIABILITY of $5 M death suit (enabled Paolo Macchiarini artificial organ lawsuit) after he made the decision and were PERSONALLY LIABLE to SHAREHOLDERS …???
· 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 (with their 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.
