July 28, 2023 4:33pm
As electronic trading initiated by a slowing and soft personal consumption expenditures (PCE) price index rising 0.2% month over month and 3% year over year. Year over year, prices were up 4.1%, a hair below the 4.2% consensus forecast
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!
The week in review
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 +176.57 points (+0.50%), the S&P closed UP +44.82 points (+0.99%) while the Nasdaq closed UP +266.55 points (+1.90%)
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 rose Friday with the Dow and S&P 500 set to close out their 3rd winning week in a row as a measure of inflation closely watched by the Fed came in at its lowest in nearly two years.
All three major averages are on pace for weekly gains.
Economic Data Docket: U.S. inflation slowed considerably in the 12 months to June, with the personal consumption expenditures (PCE) price index rising by 3%, the smallest annual gain since March 2021, data from the Commerce Department.
Thursday (7/27) … RegMed Investors’ (RMi) pre-open: “speculative frenzy pre-earnings. Earnings season focus starts coming next week, so pay close attention to upcoming results that could affect your portfolio.” … https://www.regmedinvestors.com/articles/13053
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 30 up/ 3 down and 2 flats, stayed positive with 31 up/ 4 down and 0 flat at the mid-day, ending with a positive close of 31 incliners, 4 decliners and 0 flat
- Thursday’s advance/decline line opened negative at 10 up/ 24 down and 1 flat, stayed negative with 8 up/ 27 down and 0 flat at the mid-day, ending with a negative close of 4 incliners, 30 decliners and 1 flat
- Wednesday’s advance/decline line opened positive at 18 up/ 12 down and 5 flats, stayed 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
- Tuesday’s advance/decline line opened negative at 10 up/ 21 down and 4 flats, stayed negative with 14 up/ 21 down and 0 flat at the mid-day, ending with a negative close of 11 incliners, 23 decliners and 1 flat
- 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:
- Friday, the IBB was up +1.52% and the XBI was up +2.45%
- Thursday, the IBB was down -0.72% and the XBI was down -1.54%
- Wednesday, the IBB was down -0.21% and the XBI was down -0.14%
- Tuesday, the IBB was down -0.24% and the XBI was down -0.36%
- Monday, the IBB was down -1.56% and the XBI was down -1.82%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Friday was down -1.08 point or -7.49% at 13.33
- Thursday was up +1.23 point or +9.33% at 14.42
- Wednesday was down -0.58 point or -4.18% at 13.28
- Tuesday was up +0.10 point or +0.72% at 14.01
- Monday was up +0.26 point or +1.91% at 13.86
Closing Down (4 of 4):
- Sage Therapeutics (SAGE -$0.84 after Thursday’s -$0.41, Wednesday’s -$5.63, Tuesday’s -$2.11 after Monday’s -$0.78),
- Mesoblast (MESO -$0.05),
- Harvard Apparatus RM (HRGN -$0.09),
- Cellectis SA (CLLS -$0.05),
Closing Up (10 of 31):
- Alnylam Pharmaceuticals (ALNY +$4.42 after Thursday’s -$0.07, Wednesday’s +$1.48, Tuesday’s +$1.14 and Monday’s -$7.75)
- Blueprint Medicine (BPMC +$3.38 after Thursday’s +$0.64, Wednesday’s +$0.24 and Tuesday’s +$1.05),
- Beam Therapeutics (BEAM +$1.57 after Thursday’s -$2.30, Wednesday’s -$0.35, Tuesday’s +$0.91 and Monday’s -$0.52),
- CRISPR Therapeutics (CRSP +$1.45 after Thursday’s -$1.84 and Wednesday’s +$1.84),
- Intellia Therapeutics (NTLA +$1.39 after Thursday’s -$1.01, Wednesday’s +$0.61, Tuesday’s -$0.55 and Monday’s -$1.45),
- Ionis Pharmaceuticals (IONS +$1.29 after Thursday’s -$0.48, Wednesday’s -$0.87, Tuesday’s +$0.61 after Monday’s -$1.41),
- Ultragenyx (RARE +$1.12),
- Regenxbio (RGNX +$0.80),
- Prime Medicine (PRME +$0.55 after Thursday’s +$0.19, Wednesday’s -$0.54, Tuesday’s +$0.08 after Monday’s -$0.45),
- Cariboo Biosciences (CRBU +$0.45 and Thursday’s -$0.27),
Q3/23 – July
- Friday closed positive with 31 incliners, 4 decliners and 0 flat
- Thursday closed negative with 4 incliners, 30 decliners and 1 flat
- Wednesday closed positive with 20 incliners, 14 decliners and 1 flat
- Tuesday closed negative with 11 incliners, 23 decliners and 1 flat
- Monday (7/24) 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.”
While macroeconomic headwinds are waning for the moment, one session left in July (Monday ’31) before the onslaught of earnings LPS (loss-per-share) releases
RegMed Investors (RMi) Research Note: Q2/2023 earnings reporting date announcements … https://www.regmedinvestors.com/articles/13044
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:
Friday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Ultragenyx (RARE)
Thursday: Blueprint Medicine (BPMC), Prime Medicine (PRME) and BioLife Solutions (BLFS)
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:
Friday: Sage Therapeutics (SAGE), Harvard Apparatus (HRGN - formerly Biostage (BSTG) and cellects SA (CLLS)
Thursday: Beam Therapeutics (BEAM), CRSPER Therapeutics (CRSP) and Intellia Therapeutics (NTLA)
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
Good news:
Reata Pharmaceuticals (RETA) acquired by Biogen (BIIB) in $7 billion deal. The maker of an approved therapy for a rare neurological condition, in a deal worth $7.3 billion. The transaction price of $172.50 per share is a nearly 60% premium from Reata’s share price at Thursday’s close. The deal is expected to close by the end of the year.
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” corporate 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.
