July 26, 2023 4:40pm
The Fed hiked interest rates by a quarter of a point. This brings the benchmark borrowing rate to a range of 5.25%-5.5%.
Pre-Open Indications: 5 Hits and 1 Miss
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If I have learned one thing as a former research analyst in a venture and public fund, operating executive, x-military officer and x-FBI, an adjunct (MBA) business school professor now a journalist; my life and your portfolio are largely tied to our knowledge of price movements and questioning pricing targets.
The Dow closed UP +82.05 points (+0.23%), the S&P closed DOWN -0.71 points (-0.02%) while the Nasdaq closed DOWN -17.27 points (-0.12%)
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 were mixed on Wednesday after the Fed hiked 25 basis points.
Economic Data Docket: The Commerce Department reported earlier this month that headline consumer price index for June was estimated to have risen 3% from a year earlier, the slowest rate of increase since March 2021 and down from the 4% pace recorded in April. The June reading marked the 12th consecutive month of decline for headline inflation, which peaked at 9.1% in June of last year.
Wednesday (7/26) … RegMed Investors’ (RMi) pre-open: “back again, waiting for Jerome. Fed rate hike decision on tap with a policy announcement due at 2 p.m. ET.” … https://www.regmedinvestors.com/articles/13049
RegMed Investors (RMi) Research Note: Q2/2023 earnings reporting date announcements … https://www.regmedinvestors.com/articles/13044
Pre-open Indications: 5 Hits < Blueprint Medicine (BPMC +$0.24), Intellia Therapeutics (NTLA +$0.61), Ultragenyx (RARE +$0.57), Beam Therapeutics (BEAM -$0.35), Ionis Pharmaceuticals (IONS -$0.87)> and 1 Miss < Prime Medicine (PRME -$0.54)>
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/ 12 down and 5 flats, flipped positive with 16 up/ 17 down and 2 flats at the mid-day, ending with a positive close of 20 incliners, 14 decliners and 1 flat
Key Metrics:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
Wednesday, the IBB was down -0.21% and the XBI was down -0.14%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -0.58 point or -4.18% at 13.28
Closing Down (10 of 14):
- Sage Therapeutics (SAGE -$5.63 after Tuesday’s -$2.11 after Monday’s -$0.78),
- Ionis Pharmaceuticals (IONS -$0.87 after Tuesday’s +$0.61 after Monday’s -$1.41),
- Prime Medicine (PRME -$0.54 after Tuesday’s +$0.08 after Monday’s -$0.45),
- Beam Therapeutics (BEAM -$0.35 after Tuesday’s +$0.91 after Monday’s -$0.52),
- Verve Therapeutics (VERV -$0.32 after Tuesday’s +$0.13),
- Harvard Apparatus (HNGN -$0.30 after Tuesday’s -$0.57) <formerly Biostage (BSTG)
- Voyager therapeutics (VYGR -$0.16 after Tuesday’s -$0.19)
- Cellectis SA (CLLS -$0.08),
- Brainstorm Cell Therapeutics (BCLI -$0.06),
- Solid BioSciences (SLDB -$0.02 after Tuesday’s +$0.04),
Flat (1):
- Homology Medicine (FIXX)
Closing Up (10 of 20):
- CRISPR Therapeutics (CRSP +$1.84),
- Alnylam Pharmaceuticals (ALNY +$1.48 after Tuesday’s +$1.14 and Monday’s -$7.75)
- Intellia Therapeutics (NTLA +$0.61 after Tuesday’s -$0.55 and Monday’s -$1.45),
- Ultragenyx (RARE +$0.57 after Tuesday’s -$0.55 and Monday’s -$1.08),
- Regenxbio (RGNX +$0.46 after Tuesday’s -$0.32),
- Vericel (VCEL +$0.40),
- Blueprint Medicine (BPMC +$0.24 after Tuesday’s +$1.05),
- Adverum Biotechnologies (ADVM +$0.23 after Tuesday’s -$0.27),
- AxoGen (AXGN +$0.23),
- bluebird bio (BLUE +$0.19),
Q3/23 – July
- Wednesday closed positive with 20 incliners, 14 decliners and 1 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.”
As the cell and gene therapy sector fell … again, 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.
The Fed resumed its rate hike cycle by lifting its benchmark lending rate to the highest levels in more than two decades, while repeating its view that further increases will likely be needed in order to bring inflation back to the central bank's 2% target.
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:
Wednesday: CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY) and Intellia Therapeutics (NTLA)
Tuesday: Blueprint Medicine (BPMC), Beam Therapeutics (BEAM) and Alnylam Pharmaceuticals (ALNY)
Monday: Harvard Apparatus (HRGN - formerly Biostage (BSTG), Homology Medicine (FIXX) and Caribou Biosciences (CRBU)
While The worst three (3) in the session:
Wednesday: Sage Therapeutics (SAGE), Ionis Pharmaceuticals IONS) and Prime Medicine (PRME)
Tuesday: Sage Therapeutics (SAGE), Vericel (VCEL) and Intellia Therapeutics (NTLA) - again
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
Some BAD news:
Biogen (BIIB) to cut 1,000 jobs as its business is in transition as roll-out of new Alzheimer drug, it developed and prepares for the possible approval of a treatment for depression next week.
Passage Bio (PASG) executes job cuts of 26% at Philadelphia gene therapy developer include the CFO and chief technical officer.
Humanigen (HGEN) is considering bankruptcy or other insolvency proceedings.
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 “former” name was used by a former chairman and CEO Green initiating scandal plagued utilization of an Italian surgeon and the $5 M it took to settle out the executive responsibility as it was SHIFTED to the company shareholders and Harvard Bio (HBIO)???
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.
