July 24, 2023 4:51pm

Will this week be a test of the sectors viability as we cruise toward earning season?

Pre-Open Indications: 3 Hits and 2 Miss

News: Alnylam Pharmaceuticals (ALNY -$7.75) has entered into a strategic agreement with Roche (RHBBY) to develop and commercialize zilebesiran (ALNY’s P5x25), an investigational RNAi therapeutic for the treatment of hypertension, which is currently in P2 of development. The partnership allows for a development plan’s goal of disrupting the hypertension treatment paradigm globally.

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.

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, x-military officer and x-FBI 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 +183.55 points (+0.52%), the S&P closed UP +18.30 points (+0.40%) while the Nasdaq closed UP +26.06 points (+0.19%)

 

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 …

Gains continue in the markets as the sector gets whacked by resistance.

I anticipate earnings LPS (loss-per-share) results from my 35 sector covered companies.

A quote, I DON’T totally agree with, “So far, there’s no evidence of a recession. So as long as there’s no evidence of recession, and I think the market will probably continue to melt up; people are chasing.” <Steve Eisman, senior portfolio manager at Neuberger Berman>

Economic Data Docket: Manufacturing activity picked up in July but remained in contraction, according to an S&P Global Flash PMI reading. The purchase managers index for manufacturing registered a reading of 49, representing the percentage of businesses reporting expansion. That was better than the 46.3 in June but still below the 50 level that is the dividing line between expansion and contraction. Conversely, the services PMI was at 52.4, which is expansionary but was less than the 54.4 June reading and the lowest level in five months.

 

Monday (7/24) … RegMed Investors’ (RMi) pre-open: “a snap, crackle or pop week. Looking forward: I’m remaining cautious as Q2 earnings LPS (loss-per-share) are aiming for beginning of August while an unusual Nasdaq-100 rebalancing takes effect Monday; after large volume of index and stock options expired Friday.” … https://www.regmedinvestors.com/articles/13045   

 

Pre-open Indications: 3 Hits < Voyager Therapeutics (VYGR -$0.8), bluebird bio (BLUE -$0.21). Vericel (VCEL +$0.33)> and 2 Miss < Blueprint Medicine (BPMC -$0.33), Sage Therapeutics (SAGE -$0.78)>

 

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

  • Monday’s advance/decline line opened negative at 6 up/ 27 down and 2 flats, stayed negative with 4 up/ 29 down and 2 flats at the mid-day, ending with a negative close of 4 incliners, 31 decliners and 0 flats

 

Key Metrics:

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

  • Monday, the IBB was down -1.56% and the XBI was down -1.82%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +0.26 point or +1.91% at 13.86

 

Closing Down (10 of 31):

  • Alnylam Pharmaceuticals (ALNY -$7.75)
  • Intellia Therapeutics (NTLA -$1.45),
  • Ionis Pharmaceuticals (IONS -$1.41),
  • CRISPR Therapeutics (CRSP -$1.21),
  • Ultragenyx (RARE -$1.08),
  • Sage Therapeutics (SAGE -$0.78),
  • BioLife Solutions (BLFS -$0.53),
  • Beam Therapeutics (BEAM -$0.52),
  • Cellectis SA (CLLS -$0.46),
  • Prime Medicine (PRME -$0.45),

Closing Up (4 of 4):

  • Harvard Apparatus (HRGN -formerly Biostage +$0.27),
  • Homology Medicine (FIXX +$0.05),
  • Caribou Biosciences (CRBU +$0.03),
  • Generation BIO (GBIO +$0.01),

 

Q3/23 – July

  • Monday closed negative with 4 incliners, 31 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 major market indexes gained ground Monday, with the Dow closing higher for an 11th straight day, the longest such streak since 2017.

Interesting that, “Sentiment is upbeat ahead of a busy week on Wall Street, with the next Fed meeting set to kick off tomorrow and several mega-cap stocks on the earnings calendar.”

Unfortunately, “US business activity growth in July slows as services soften.”  Have investors ignored a survey showing July U.S. business activity had slowed to a five-month low, dragged down by decelerating service-sector growth??”

As the cell and gene therapy sector fell leaving blood on the walls and the street.  

While macroeconomic headwinds are waning for the moment, Q2 earnings season is about to start ramping up.

 

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!”

 

The top three (3) performing in the session:

Monday: Harvard Apparatus (HRGN - formerly Biostage (BSTG), Homology Medicine (FIXX) and Caribou Biosciences (CRBU)

 

While The worst three (3) in the session:

Monday: Alnylam Pharmaceuticals (ALNY), Intellia Therapeutics (NTLA) and Ionis Pharmaceuticals (IONS)

 

Interesting Stats:

Q2 '23 M&As announced: 17

Q2 '23 M&As completed: 7

Q3 '23 M&As announced: 3 <so far>

Recently: Korro Bio (private) and Frequency Therapeutics (FREQ) announce merger; combined genetic medicine company will have $170 M in cash runway to last until 2026

 

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 …

 

Harvard Apparatus Regenerative Technology (HRGN)  formerly Biostage (OTCQB: BSTG) … as of 7/20/23 -- so many issues!

·         Question: is HRGN) just another Ponzi scheme (with their pump/promote buy and sell agenda) as shares are bought to replace those sold?

·         Accumulated deficit:  $85,901 M

·         Will HRGN ESCAPE the scandals when its name was used for a Greene initiated utilization of an Italian surgeon and the $5 M it took to settle out the executive responsibility as it SHIFYED to the company shareholders???

 

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.