Reg Med Investors (RMi) Closing Bell: sector equities sell-off again

August 16, 2023 4:54pm

I’m now looking at entry points having waited for the minutes from the Fed's latest policy meeting and slowing earnings’ releases

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Never leave an investor uninformed!

Markets will be on pins and needles regarding what the Fed will do all through September and into October.

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 DOWN -180.65 or -0.52%, the S&P closed DOWN -33.53 or -0.76% while the Nasdaq closed DOWN -156.42 points (-1.15%)

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 digested a summary of the Fed’s July meeting, which hinted at potentially higher rates.

Economic Data Docket: In the central bank’s July meeting minutes, officials said additional tightening may be necessary to bring down inflation. “With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the meeting summary stated.

July housing starts for both new single- and multi-family units increased to a seasonally adjusted annual rate of 1.452 million units, 5.9% higher from a year ago, according to Census Bureau data out Wednesday. That pace just exceeded the 1.450 million units.

Wednesday (8/16) … RegMed Investors’ (RMi) Opening Bell: “futures waver casting some doubt on the session. As investors await further clues on the path of interest rates from the US Federal Reserve.” … https://www.regmedinvestors.com/articles/13080

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 7 up/ 27 down and 1 flat, stayed negative with 3 up/ 30 down and 2 flats at the mid-day, ending with a negative close of 6 incliners, 29 decliners and 0 flat

52-Week Lows:

• Beam Therapeutics (BEAM) at $23.76
• Sangamo Therapeutics (SGMO) at $0.96
• Fate Therapeutics (FATE) at $2.86

Ebb and flow:

Q3: August – 2 positive and 10 negative closes

Key Metrics:

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

• Wednesday, the IBB was down -1.43% and the XBI was down -2.18%

The CBOE Volatility Index (VVIX: INDEX) tracked:

• Wednesday was up +0.32 point or +1.94% at 16.78

Closing Down (10 of 29):

• Blueprint Medicine (BPMC -$1.85 after Tuesday’s -0.19 and Monday’s +$1.88),
• CRISPR Therapeutics (CRSP -$1.48 after Tuesday’s +$0.26),
• Ultragenyx Pharmaceuticals (RARE -$1.27 after Tuesday’s +$0.49 and Monday’s +$1.58),
• Beam Therapeutics (BEAM -$1.06 after Tuesday’s -$0.95 and Monday’s -$0.33),
• Intellia Therapeutics (NTLA -$1.06),
• Sage Therapeutics (SAGE -$0.88 after Tuesday’s -$0.38 and Monday’s -$0.14),
• Verve Therapeutics (VERV -$0.78 after Tuesday’s -$1.27 and Monday’s -$0.91),
• BioLife Solutions (BLFS -$0.60 after Tuesday’s -$0.33 and Monday’s +$0.46),
• AxoGen (AXGN -$0.51 after Tuesday’s +$0.04),
• Ionis Pharmaceuticals (IONS -$0.45 after Tuesday’s -$0.34),

Closing Up (6 of 6):

• Alnylam Pharmaceuticals (ALNY +$2.30 after Tuesday’s -$1.22 and Monday’s -$4.44)
• Vericel (VCEL+$0.18 after Tuesday’s -$0.11),
• Graphite Bio (GRPH +$0.05),
• Mesoblast (MESO +$0.03),
• Generation Bio (GBIO +$0.01),
• Solid Biosciences (SLDB +$0.005)

Q3/23 – August

• Wednesday closed negative with 6 incliners, 29 decliners and 0 flat
• Tuesday closed negative with 15 incliners, 18 decliners and 2 flats
• Monday closed negative with 16 incliners, 18 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.”

Cell and gene therapy sector equity losses accelerated into the close on Wednesday after minutes from the Federal Reserve revealed "most" officials still see upside risks to inflation and a retail-heavy data week continued.

Minutes from the Fed's meeting last month showed most officials still see upside risks to inflation while a "couple" of officials didn't want to raise rates in July. The central bank raised interest rates to their highest point since 2001 at that meeting.

August tends to frighten many stock market investors and historians.

•              The stock market is riding high after a strong performance in July, but August could be a difficult month for investors.

•              Data compiled by the Stock Trader’s Almanac shows the S&P 500 averages just a 0.1% gain in August. That makes it the third-worst month on average for the benchmark index. The Dow, meanwhile, averages a loss of 0.04% in August. <CNBC>

Cell and gene therapy sector performance continues to suggest the results of earning season…

Q2/23 net losses earnings, cash positions and runway outcomes. LPS (loss-per-share) releases will present challenges to share pricing with outcomes included … https://www.regmedinvestors.com/articles/13058

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: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Regenxbio (RGNX)

Tuesday: Ultragenyx (RARE), CRISPR Therapeutics (CRSP), uniQure NV (QURE)

Monday: Blueprint Medicine (BPMC), Ultragenyx (RARE) and Prime Medicine (PRME)

While The worst three (3) in the session:

Wednesday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM)

Tuesday: Alnylam Pharmaceuticals (ALNY) – again, Verve Therapeutics (VERV) – again and Beam Therapeutics (BEAM)

Monday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Verve Therapeutics (VERV)

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 $5.9 M it took to settle out the executive responsibility as it was SHIFTED to the company shareholders and Harvard Bio (HBIO)???

•              On April 28, 2022, the Company entered into a Preferred Issuance Agreement, or PIA, with Harvard Bioscience, Inc., or HBIO, dated as of April 27, 2022. Pursuant to the PIA, the Company and HBIO agreed that once HBIO had paid at least $4.0 million in certain settlement and related legal expenses, to satisfy the Company’s indemnification obligations with respect thereto, in lieu of paying cash, the Company would issue senior convertible preferred stock to HBIO that will contain terms as described in the PIA. <10-K>

•              On June 10, 2022, following the execution of a subscription agreement and HBIO providing evidence of payment of the requisite $4.0 million amount, the Company issued HBIO 4,000 shares of Series E Convertible Preferred Stock, or Series E Preferred Stock, at a price of $1,000 per share to satisfy the Company’s related indemnification obligations pertaining to the $4.0 million, in lieu of paying cash. <10-K>

•              Can this management team be TRUSTED by ANY shareholder with BARELY any U.S. investors other then major holders’ being Chinese off-shore investors.

•              HRGN schedules earnings LPS (loss-per-share) – al but broke as 3–5-year clinical trial begins – four (4) years after IND approved

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.