May 27, 2023 12:34pm

Stay “frosty,” debt ceiling negotiations have weighed on market sentiment this week; what about next week if NO deal? I am concerned Dems reuse to budge with a lack of accord!

If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing.

Subscription is coming, it is not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.

If you want facts to expose share pricing facts to save your portfolio for deliberate decisions, bookmark this site!

Week in review and what a month it has been <see May's breakdown>

 

If I have learned one thing as a former research analyst in a venture and public fund, operating executive, adjunct (MBA) business school professor 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 UP +328.69 points (+1%), the S&P closed UP +54.17 points (+1.30%) while the Nasdaq closed UP +277.59 points (+2.19%)

 

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.

From the title, “stay frosty” <military slang> - To be alert and ready for action, without letting one's fear or other emotions get in the way.

Indexes jumped Friday as traders grew hopeful that a deal to raise the U.S. debt ceiling, avoiding a potentially catastrophic default.

For the week, the Dow lost -1%, the S&P 500 advanced +0.3% while the Nasdaq rose +2.5%.

Economic Data Docket: The personal consumption expenditures index, the Federal Reserve’s preferred gauge of price pressures, increased 0.4% last month and 4.7% from a year earlier.

 

Friday (5/26) … RegMed Investors’ (RMi) pre-open: “what’s the plan? Debt ceiling negotiations continued to weigh on the major averages and consequences could be serious if NOT resolved.” … https://www.regmedinvestors.com/articles/12975   

 

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

  • Friday’s advance/decline line opened positive at 24 up/ 10 down and 1 flat, stayed positive with 23 up/ 8 down and 4 flat at the mid-day, ending with a positive close of 27/8 and 0 flat
  • Thursday’s advance/decline line opened negative at 3 up/ 31 down and 1 flat, stayed negative with 5 up/ 30 down and 0 flat at the mid-day, ending with a negative close of 6/29 and 0 flat
  • Wednesday’s advance/decline line opened negative at 6 up/ 28 down and 1 flat, stayed negative with 3 up/ 32 down and 0 flat at the mid-day, ending with a negative close of 5/30 and 0 flats
  • Tuesday’s advance/decline line opened positive at 28 up/ 7 down and 0 flat, stayed positive with 23 up/ 12 down and 0 flat at the mid-day, ending with a negative close of 17/18 and 0 flats
  • Monday’s advance/decline line opened positive at 29 up/ 4 down and 1 flat, stayed positive with 30 up/ 4 down and 1 flat at the mid-day, ending with a positive close of 29/4 and 2 flats

 

Key Metrics:

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

  • Friday, the IBB was up +0.20% and the XBI was up +0.91%
  • Thursday, the IBB was down -1.89% and the XBI was down -2.66%
  • Wednesday, the IBB was down -1.40% and the XBI was down -1.94%
  • Tuesday, the IBB was down -0.03% and the XBI was up +0.02%
  • Monday, the IBB was up +0.82% and the XBI was up +2.46%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -1.19 point or -6.22% at 17.95
  • Thursday was down -1 point or -4.99% at 19.03
  • Wednesday was up +1.51 points or +8.15% at 20.04
  • Tuesday was up +1.39 points or +8.08% at 18.60
  • Monday was up +0.39 points or +2.32% at 17.20

 

Closing Down (8 of 8):

  • Intellia Therapeutics (NTLA -$0.24 after Thursday’s -$1.69, Tuesday’s -$0.94 and Monday’s +$2.37),
  • uniQure NV (QURE -$0.17 after Thursday’s -$0.78),
  • Biostage (OTCQB: BSTG -$0.15),
  • Ultragenyx (RARE -$0.09),
  • Sangamo therapeutics (SGMO -$0.07),
  • Regenxbio (RGNX -$0.06 after Thursday’s -$0.75 and Tuesday’s -$0.14),
  • Compass Therapeutics (CMPX -$0.04),
  • AxoGen (AXGN -$0.02)

Closing Up (10 of 27):

  • Blueprint Medicines (BPMC +$3.47),
  • Alnylam Pharmaceuticals (ALNY +$2.16 after Thursday’s +$0.08, Wednesday’s -$5.91 and Tuesday’s -$2.23 and Monday’s +$2.32),
  • Chinook Therapeutics (KDNY +$1.75 after Thursday’s +$0.05),
  • Ionis Pharmaceuticals (IONS +$1.57 after Thursday’s -$1.00),
  • Sage Therapeutics (SAGE +$1.08 after Thursday’s -$0.80 and Tuesday’s -$0.94),
  • CRISPR Therapeutics (CRSP +$0.81 after Thursday’s -$1.32),
  • Vericel (VCEL +$0.48),
  • Mesoblast (MESO +$0.18),
  • Solid Biosciences (SLDB +$0.16)
  • Beam Therapeutics (BEAM +$0.16 after Thursday’s -$1.13),

 

Q2/23 – May

Friday closed positive with 27 incliners, 8 decliners and 0 flats

Thursday closed negative with 6 incliners, 29 decliners and 0 flat

Wednesday closed negative with 5 incliners, 30 decliners and 0 flat

Tuesday closed positive with 17 incliners, 18 decliners and 0 flat

Monday closed positive with 29 incliners, 4 decliners and 2 flats

Friday closed positive with 20 incliners, 13 decliners and 2 flats

Thursday closed negative with 9 incliners, 24 decliners and 2 flats

Wednesday closed positive with 24 incliners, 9 decliners and 2 flats

Tuesday closed negative with 6 incliner, 28 decliners and 1 flat

Monday closed positive with 28 incliners, 6 decliners and 1 flat

Friday closed negative with 10 incliners, 25 decliners and 0 flat

Thursday closed negative with 4 incliners, 30 decliners and 1 flat

Wednesday closed positive with 24 incliners, 10 decliners and 1 flat

Tuesday closed positive with 20 incliners, 15 decliners and 0 flat

Monday closed negative with 16 incliners, 18 decliners and 1 flat

Friday closed positive with 28 incliners, 7 decliners and 0 flat

Thursday closed positive with 29 incliners, 6 decliners and 0 flat

Wednesday closed positive with 31 incliners, 3 decliners and 1 flat

Tuesday closed negative with 4 incliner, 30 decliners and 1 flat

Monday closed positive with 26 incliner, 7 decliners and 2 flats

 

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

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

I have been warning for days that a HIT was coming to share pricing … “when fear takes over, investors tend to sell first and ask questions second — and that’s what we are seeing,”

Reiterating, “Debt-ceiling negotiations are a lose-lose for equity investors at this point, as a failure to strike a deal will lead to an immediate recession, while a deal will strain liquidity from markets as the US Treasury issues trillions in new bonds, which are newly born.” <Jose Torres, Interactive Brokers>

It ain’t over …

As I have stated, “The cell and gene therapy sector is experiencing yet another “flight of Icarus” …  since “our” universe have oscillated between gains and losses since the first of 2023!”

There is VALUE out there however, it’s about playing or betting the timing of the sector. Even as I had stated, “I wouldn’t be buying into this rally … I would be selling into this upside!”

 

Bad news: Apellis Pharmaceuticals (APLS) is stopping work on a drug for amyotrophic lateral sclerosis, or ALS, after it failed in a mid-stage trial.

  • Apellis Pharmaceuticals (APLS) the P22 MERIDIAN study investigating systemic pegcetacoplan for the treatment of amyotrophic lateral sclerosis (ALS) did not meet its primary endpoint of the Combined Assessment of Function and Survival (CAFS) rank score at Week 52. The study also did not meet key secondary efficacy endpoints. Systemic pegcetacoplan was well tolerated in the study, and the data were consistent with the established safety profile.

 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>

 

There are clear winners — and losers — at the start of May.

The top three (3) performing in the session:

·         Friday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals (ALNY) – again and Chinook Therapeutics (KDNY)

·         Thursday: Prime Medicines (PRME), Alnylam Pharmaceuticals (ALNY) and Adverum Biotechnologies (ADVM)

·         Wednesday: Voyager Therapeutics (VYGR), BioLife Solutions (BLFS) and MiMedx (MDXG)

·         Tuesday: Blueprint Medicine (BPMC), Ionis Pharmaceuticals (IONS) and CRISPR Therapeutics (CRSP)

·         Monday: CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA) and Alnylam Pharmaceuticals (ALNY)

While The worst three (3) in the session:

·         Friday: Intellia Therapeutics (NTLA) – again, uniQure NV (QURE) and Biostage (OTCQB: BSTG)

·         Thursday: Blueprint Medicine (BPMC), Intellia Therapeutics (NTLA) and Sage Therapeutics (SAGE)

·         Wednesday: Alnylam Pharmaceuticals (ALNY) – again, Intellia Therapeutics (NTLA) and Ultragenyx (RARE)

·         Tuesday: Voyager Therapeutics (VYGR), Alnylam Pharmaceuticals (ALNY), and Sage Therapeutics (SAGE)

·         Monday: uniQure NV (QURE), AxoGen (AXGN) and Generation Bio (GBIO),

 

Earnings:

RegMed Investors (RMi) Research Note: Q1/23 earnings reporting dates, net losses, cash positions and runway outcomes … https://www.regmedinvestors.com/articles/12923  -

Sector earnings season have drawn to a close …

·         One (1) net income from 35 reported to date

·         Mesoblast (MESO) reported Q3/ 23 on Friday a net loss of -$18.6 M or -$2.53 per share with a cash position of $48.8 M and a runway until Q2/24

 

WHY (?) do I keep posting, so investors can get a daily update of the sector's share pricing and some individual companies TRUTHS while electronic trading chews on our portfolio edges.

I am definitely considered a contrarian depending on the session – one has to be a watcher of the ups and downs as well as measurer of sentiment. I am also a NO trust investor but, a validate and verify journalist/analyst.

The NO spin zone! U.S. public shareholders deserve accountability …

Biostage (OTCQB: BSTG) …

·         Friday closed down -$0.15 with 341 shares traded after Thursday closed down -$0.40 with 3,913 shares traded, Wednesday closed down -$0.11 with 2,070 shares traded, Tuesday closed up +$0.04 with 110 shares traded, Monday closed FLAT and last Friday closed FLAT with 23 shares traded, <3-month average =1,5.04 shares>

·         Question: Review the number of shares traded … is OTCQB: BSTG a Ponzi scheme (with their pump/promote buy and sell agenda) as shares are bought to replace those sold?

·         Accumulated deficit:  $85,901 M – still NO product in sight!

 

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.