May 31, 2023 4:56pm

The sector and market dived on debt ceiling rule committee “first test”; what happens when it is blown-up by Congress’ and possible Senate voting? Investors are also fretting over another possible interest rate hike by the Fed next month as inflation remains elevated – another whammy?

Biostage (OTCQB: BSTG) finally announced a clinical trial initiation for an IND that was approved on 3/20/2020 – what’s with the time (3 years and 2 months) interval? They wouldn’t have had the IND unless I (Henry) had brought in an FDA specialist and worked so many hours diligently with him and others to NOT be paid!

Pre-open Indications: 2 Hits and 0 Miss

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 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 DOWN -134.51 points (-0.41%), the S&P closed DOWN -25.69 points (-0.61%) while the Nasdaq closed DOWN -82.14 points (-0.63%)

 

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 kept an eye on the federal debt ceiling debate in Washington in the final trading day of May.

Once a “deal” and vote is approved, the market will then be focused on the June Fed policy meeting.

With just Wednesday’s session left in the trading month, the Nasdaq is up more than +6%, the S&P 500 is up +0.5%, while the Dow has fallen around -3.4%.

Economic Data Docket: U.S. bank deposits declined by $472.1 billion in first quarter, according to a report released Wednesday by the Federal Deposit Insurance Commission.

 

Wednesday (5/31) … RegMed Investors’ (RMi) pre-open: “the final trading session of May. The likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling is disputed amid growing opposition within the GOP believing the debt ceiling cuts have NOT gone far enough.” … https://www.regmedinvestors.com/articles/12981

 

Pre-open Indications: 2 Hits < Chinook Therapeutics (KDNY -$0.06), BioLife Solutions (BLFS -$0.01)> and 0 Miss

 

All-Time low: Sangamo Therapeutics (SGMO) at $1.12

 

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

  • Wednesday’s advance/decline line opened negative at 15 up/ 17 down and 3 flats, stayed negative with 9 up/ 25 down and 1 flat at the mid-day, ending with a negative close of 15/17 and 3 flats

 

Key Metrics:

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

  • Wednesday, the IBB was up +0.11% and the XBI was up +0.99%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.27 points or +1.55% at 17.73

 

Closing Down (10 of 17):

  • Alnylam Pharmaceuticals (ALNY -$1.45)
  • Vericel (VCEL -$0.82 after Tuesday’s +$0.48),
  • CRISPR Therapeutics (CRSP -$0.59),
  • Voyager Therapeutics (VYGR -$0.33),
  • Intellia Therapeutics (NTLA -$0.29),
  • Generation Bio (GBIO -$0.28),
  • Regenxbio (RGNX -$0.27),
  • AxoGen (AXGN -$0.21),
  • Prime Medicine (PRME -$0.11),
  • Mesoblast (MESO -$0.10),

Flat (3):

  • Beam Therapeutics (BEAM)
  • Biostage (OTCQB: BSTG)
  • Cellectis SA (CLLS)

Closing Up (10 of 15):

  • Ultragenyx (RARE +$0.95 after Tuesday’s -$0.09),
  • Ionis Pharmaceuticals (IONS +$0.35),
  • Sage Therapeutics (SAGE +$ after Tuesday’s +$1.08),
  • Editas Medicine (EDIT +$0.22),
  • Verve Therapeutics (VERV +$0.15),
  • Blueprint Medicines (BPMC +$0.11 after Tuesday’s +$3.47),
  • Adverum Biotechnologies (ADVM +$0.11),
  • Agenus (AGEN +$0.10),
  • MiMedx (MDXG +$0.09)
  • Fate Therapeutics (FATE +$0.09),

 

Q2/23 – May

Wednesday closed negative with 15 incliners, 17 decliners and 3 flats

Tuesday closed negative with 7 incliners, 26 decliners and 2 flats

Monday was a holiday

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.”

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!”

 

The top three (3) performing in the session:

·         Wednesday: Ultragenyx (RARE), Ionis Pharmaceuticals (IONS) and Editas Medicine (EDIT)

·         Tuesday: Chinook therapeutics (KDNY), BioLife solutions (BLFS) and Prime Medicine (PRME)

·         Monday - holiday

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

While The worst three (3) in the session:

·         Wednesday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and CRISPR Therapeutics (CRSP)

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

·         Monday - holiday

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

 

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

 

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) … minimizing the downdraft by volume purchases!!

·         Wednesday closed flat after Tuesday closed down -$0.13 with 2,718 shares traded after Monday’s holiday as Friday closed down -$0.15 with 341 shares traded, Thursday closed down -$0.40 with 3,913 shares traded and last Wednesday closed down -$0.11 with 2,070 shares traded <3-month average =1,458 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.