July 6, 2023 5:26pm

More than a lot of cautious cash sits on sidelines even with a positive Caribou Therapeutics (CRBU) investment by Pfizer (PFE) and advancing data from RARE the sector was ripped from its moorings again

News: Ultragenyx Pharmaceutical (RARE -$0.91 or -1.96% to $45.52) the first patients have been dosed in both of its P3 portion of the pivotal P2/3 Orbit study evaluating the effect of setrusumab compared to placebo on annualized clinical fracture rate in patients pediatric and young adult patients with OI sub-types I, III and IV aged 5 to 26 years. Also, the newly initiated P3 Cosmic study is an active-controlled study evaluating setrusumab compared to intravenous bisphosphonate (IV-BP) therapy on annualized total fracture rate in patients aged 2 to 5 years.

Pre-open Indications: 2 Hits and 1 Miss

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.

Why do I do what I do, to never leave an investor uninformed! 

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 -366.38 points (-1.07%), the S&P closed DOWN -35.23 points (-0.79%) while the Nasdaq closed DOWN -112.61 points (-0.82%)

 

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 slid on Thursday after better-than-expected jobs data increased anxiety around the state of the economy and path of interest rates.

According to economic releases, job openings fell more than expected in May, according to a Labor Department report. That data can provide hope that the tight job market may be seeing at least some loosening.

One of the real issues, June’s Fed policy meeting showed that most Fed officials would support more increases ahead.

Interesting quote, “What the future of the U.S. economy will look like remains unclear following Thursday’s job data, according to Mark Hamrick, senior economic analyst at Bankrate. And a big part of the question stems from uncertainty around how the Fed will move interest rates going forward. The plight of the economy, including the job market, through the end of this year, remains a question,” Hamrick said. “If the inflation fighting Fed feels compelled to raise interest rates further, as it has recently signaled, risks of economic contraction remain, or even grow.” <CNBC>

Economic Data Docket: Private sector jobs surged by 497,000 in June, well ahead of the 267,000 gains in May and much better than the 220,000 estimate. Leisure and hospitality led with 232,000 new hires, followed by construction with 97,000, and trade, transportation, and utilities at 90,000. The unexpected jump in payrolls comes despite more than a year’s worth of Fed interest rate increases.

 

Thursday (7/6) … RegMed Investors’ (RMi) pre-open: “RegMed Investors’ (RMi) pre-open: keep your bi-focal sunglasses on. While sitting back and watching, hopefully from a beach or a pool.” https://www.regmedinvestors.com/articles/13031

 

Pre-open Indications: 2 Hits < CRISPR Therapeutics (CRSP -$2.76), BioLife Solution (BLFS +$0.17)> and 1 Miss Vericel (VCEL +$0.45)>

 

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

  • Thursday’s advance/decline line opened negative at 3 up/ 30 down and 2 flats, stayed negative with 7 up/ 27 down and 1 flat at the mid-day, ending with a negative close of 11 incliners, 24 decliners and 0 flats

 

Key Metrics:

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

  • Thursday the IBB was down -1.24% and the XBI was down -1.55%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +1.26 point or +8.89% at 15.44

 

Closing Down (10 of 24):

  • CRISPR Therapeutics (CRSP -$2.76 after Wednesday’s +$0.53),
  • Blueprint Medicine (BPMC -$2.14 after Wednesday’s -$1.29)
  • Sage Therapeutics (SAGE -$1.55 after Wednesday’s -$1.03),
  • Beam Therapeutics (BEAM -$1.43)
  • Intellia Therapeutics (NTLA -$1.33 after Wednesday’s -$0.26),
  • Prime Medicine (PRMC -$1.03 after Wednesday’s +$0.27),
  • Ultragenyx (RARE -$0.91 after Wednesday’s -$0.23),
  • AxoGen (AXGN -$0.47 after Wednesday’s -$0.26),
  • Verve Therapeutics IVERV -$0.44 after Wednesday’s -$0.34),
  • Ionis Pharmaceuticals (IONS -$0.43 after Wednesday’s +$1.11),

Closing Up (11 of 11):

  • Caribou Therapeutics (CRBU +$1.86),
  • Alnylam Pharmaceuticals (ALNY +$1.82 after Wednesday’s +$2.88),
  • Vericel (VCEL +$1.45 after Wednesday’s -$1.15),
  • Regenxbio (RGNX +$0.24 after Wednesday’s -$0.81),
  • BioLife Solutions (BLFS +$0.17 after Wednesday’s -$1.10),
  • MiMedx (MDXG +$0.09),
  • Editas Medicine (EDIT +$0.05 after Wednesday’s +$0.04),
  • Graphite BIO (GRPH +$0.05),
  • Biostage (OTCQB: BSTG +$0.03 after Wednesday’s $0.00),
  • Solid Biosciences (SLDB +$0.01 after Wednesday’s +$0.06),
  • Bellicum Pharmaceuticals (BLCM +$0.009),

 

Q2/23 – July

  • Thursday closed negative with 11 incliners, 24 decliners and 0 flat

 

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.”

The market and the cell and gene therapy sector closed lower on Thursday and Wednesday as traders <partially> returned from the July 4 holiday break with renewed worries about potential interest rate increases from the Fed.

Think economics versus share pricing, “MSCI's global index of stocks fell on Thursday while Treasury yields rose as a surge in U.S. private payrolls prompted concerns that interest rates would stay higher for longer.” <Reuters>

There's a lot of uncertainty right now about whether electronic trading and algorithms will react to falling share pricing!

The coming issue is Q2 reporting is weeks if not a month away.

 

Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and truth is its product; I can always be WRONG but, I am mostly EARLY!”

 

Unresolved issues affecting our perception of markets and the factors controlling them --- who is in CONTROL of our government as a dime sized coke bag was found in the West Wing of the White House, political investigation of the White House and the Bidens, future rate increases, escalation of the Ukraine war, a Russia uncertainty after a on mercenary versus Russia fight and the major issue - recession - US and global could freezing investors' mood.

 

The top three (3) performing in the session:

·         Thursday: Caribou Biosciences (CRBU), Alnylam Pharmaceuticals (ALNY) – again and Vericel (VCEL)

·         Wednesday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and CRISPR Therapeutics (CRSP)

·         Tuesday was a holiday

·         Monday: was a vacation day

While The worst three (3) in the session:

·         Thursday: CRISPR Therapeutics (CRSP), Blueprint Medicine (BPMC) – again and Sage therapeutics (SAGE)

·         Wednesday: Blueprint Medicine (BPMC), Vericel (VCEL) and BioLife Solutions (BLFS)

·         Tuesday: was a holiday

·         Monday: was a vacation day

 

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) … so many issues from the past as many of those “miscreant management” members are still employed!

Thursday closed up +$0.03 with 185 shares traded after Wednesday closed flat to $3.97 with1 share traded, Tuesday was a holiday, <3-month average = 763 shares>

·         Question: Review the number of shares traded on a weekly and monthly basis … 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 – a 4-to-5-year clinical trial BEFORE they can evolve to a pediatric protocol!

·         OTCQB: BSTG is holding their annual meeting on 7/19, to vote the Beijing, China designated directors …??? Certainly NOT a US company ANYMORE!

·         How many chairman, executives, board and audit members, CFOs and employees has BSTG EATEN since it spun out of Harvard BIO (HBIO) which STILL carries the financial burden from its spin-out!

 

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.