September 21, 2023 4:38pm
It was a risk-off session, while investors feel the effects of Fed policies, inflation as sentiment nose dives and algos/electronic trading create share pricing depression
Pre-open Indications: 1 Hit and 1 Miss
The cell and gene therapy sector is defined by the words, “When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started”
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.
When you point one finger, there are three fingers pointing back at you!
Never leave an investor uninformed!
I’ve been a few miles, and I’ve seen a few things”. What I’m trying to do is just say, ‘Look, I don’t know everything, but I know some things—let me level with you. Based on my experience … this is what’s happening.
The Dow closed DOWN -370.46 points or -1.08%, the S&P closed DOWN -72.20 points or -1.64% while the Nasdaq closed DOWN -245.14 points or -1.82%
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 Thursday, deepening losses for the week after the Fed announced it would leave interest rates unchanged.
For the week so far, the Dow is down -1%, the S&P 500 -2% while the Nasdaq fell -3% in their 3rd straight daily loss.
Economic Data Docket: Weekly jobless claims decreased by 20,000 to 201,000 for the week ending Sept. 16, much lower than the 225,000 claims expected. Continuing claims totaled 1.662 million, a drop of 21,000 and below the FactSet estimate for 1.692 million.
- The Philadelphia Federal Reserve’s manufacturing index for September came in at -13.5, representing the percentage difference between firms reporting expansion versus contraction. The estimate was for a zero reading; the September number was a sharp decline from the previous reading of 12.
Thursday (9/21) … RegMed Investors’ (RMi) Opening Bell: “Wherefore art thou? I am occasionally retelling “Romeo and Juliet” about our sector, the question is; who are the sellers or when should buyers purchase downtrodden equities. “Deny thy pricing and refuse thy orders or if thou wilt not be but sworn” … https://www.regmedinvestors.com/articles/13130
Pre-Open indications: 1 Hit <Vericel (VCEL +$1.67), and 1 Miss <Ultragenyx Pharmaceuticals (RARE +$0.43)>
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 2 up/ 28 down and 5 flats, stayed negative at the mid-day with 5 up/ 28 down and 2 flats, ending with a negative close of 8 incliners, 25 decliners and 2 flats
- uniQure NV (QURE) at $7.09
- Solid Biosciences (SLDB) at $2.74
- Sangamo Therapeutics (SGMO) at $0.81
Ebb and flow:
Q3: September – 1 holiday, 6 positive and 8 negative closes
· August – 9 positive and 14 negative closes
· July - 1 holiday, 12 positive and 8 negative close
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
Thursday, the IBB was down -1.27% and the XBI was down -0.86%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Thursday was up +2.16 point or +14.27% at 17.29
Closing Down (10 of 25):
- Alnylam Pharmaceuticals (ALNY -$1.67),
- Blueprint Medicine (BPMC -$1.20 after Wednesday’s -$0.76, Tuesday’s -$0.86 after Monday’s +$1.57),
- CRISPR Therapeutics (CRSP -$0.50 after Wednesday’s -$0.86, Tuesday’s -$0.22 after Monday’s -$2.94),
- Intellia Therapeutics (NTLA -$0.46 after Wednesday’s -$0.38, Tuesday’s -$0.65 after Monday’s -$0.80),
- Prime Medicine (PRMC -$0.46 after Wednesday’s -$0.37, Tuesday’s +$0.15 after Monday’s -$0.44),
- uniQure NV (QURE -$0.38),
- Verve Therapeutics (VERV -$0.36),
- Sage Therapeutics (SAGE -$0.30 after Wednesday’s -$0.55, Tuesday’s +$0.15 after Monday’s -$0.72),
- Beam Therapeutics (BEAM -$0.27 after Wednesday’s +$0.73, Tuesday’s +$0.19 and Monday’s -$0.74),
- AxoGen (AXGN -$0.21),
- Harvard Apparatus RN (HRGN $0.00 after Wednesday’s $0.00, Tuesday’s -$0.09 after Monday’s $0.00)
- Precigen (PGEN $0.00 after Wednesday’s +$0.08 and Tuesday’s -$0.12),
Closing Up (8 of 8):
- Vericel (VCEL +$1.67 after Wednesday’s -$5.15 and Tuesday’s -$0.28),
- Regenxbio (RGNX +$0.05 after Wednesday’s -$0.33, Tuesday’s +$0.08 and Monday’s +$0.03),
- Editas Medicine (EDIT +$0.05),
- bluebird bio (BLUE +$0.05),
- Bellicum Pharmaceuticals (BLCM +$0.0418),
- Voyager Therapeutics (VYGR +$0.03 after Wednesday’s -$0.34, Tuesday’s -$0.11 and Monday’s +$0.19),
- Cellectis SA (CLLS +$0.01 after Wednesday ‘s +$0.01)
Q3/23 – September
- Thursday closed negative with 8 incliners, 25 decliners and 2 flats
- Wednesday closed negative with 3 incliners, 31 decliners and 1 flat
- Tuesday closed negative with 17 incliners, 18 decliners and 0 flat
- Monday closed negative with 11 incliners, 22 decliners and 2 flats
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.”
Contributing to today’s (9/21) downdraft … fear of inflation and its resulting market forces:
- Weekly jobless clams and existing home sales fell.
- While investor risk appetite dampened by worries that the Fed's monetary policy will remain restrictive for longer.
- The cell and gene therapy sector equities got share pricing “deeper” on Thursday, Wednesday after Tuesday’s slight decline, Monday’s depression even further than Friday after popping positive on Thursday.
As I have written, too many factors are calling the ball on share pricing – algorithms and electronic trading, here and there sentiment, economics, upcoming Q3 earnings.
I STILL believe the political aspect of the country’s leanings, polarization, and disparities of the debt ceilings arguments are contributing to the roller coaster ride for share pricing actions.
It’s still about the economy … STUPID as investors congest a raft of economic reports pointing to … tamer core inflation data and a spending consumer.
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!”
Being “greedy when others are fearful” is easier said than done!
When a cell and gene therapy sector equity sells-off to or below a buy point, investors face a tough decision: hold tight, exit or trim the position. There's not necessarily a "right" answer. Sometimes the stock will bounce right back, others will keep falling — perhaps after briefly bouncing. A more-cautious approach may make more sense in the current volatile market.
The top three (3) performing in the session:
Thursday: Vericel (VCEL), Ultragenyx Pharmaceuticals (RARE) and Regenxbio (RGNX)
Wednesday: Beam Therapeutics (BEAM), Precigen (PGEN) and Adverum Biotechnologies (ADVM)
Tuesday: MiMedx (MDXG), uniQure NV (QURE) and Caribou Biosciences (CRBU)
Monday: Blueprint Medicines (BPMC), Fate Therapeutics (FATE) and Voyager Therapeutics (VYGR)
The worst three (3) in the session:
Thursday: Alnylam Pharmaceuticals (ALNY) – 6x, Blueprint Medicines (BPMC) -3x and CRISPR Therapeutics (CRSP) – 3x
Wednesday: Vericel (VCEL), Blueprint Medicines (BPMC) and CRISPR Therapeutics (CRSP)
Tuesday: Alnylam Pharmaceuticals (ALNY) – 4x, Blueprint Medicines (BPMC) and Intellia Therapeutics (NTLA)
Monday: Alnylam Pharmaceuticals (ALNY) – 3x, CRISPR Therapeutics (CRSP) and Ultragenyx Pharmaceuticals (RARE) – 3x
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 according to the 8-K and 10-K!
Still labeled a … Going Concern
· HRGN has incurred substantial operating losses since its inception, and as of June 30, 2023 had an accumulated deficit of approximately $88.5 million and will require additional financing to fund future operations.
· HRGN will NEED to raise additional funds to fund its operations. WHO and WHICH U.S. investors would INVEST in a BASICALLY Chinese company with their history??
· As they continue pumping the price “pump share pricing and promote volume” just like a Ponzi scheme??? Notice the volume today – 5,398 shares traded <3-month average = 1,498 shares> to close FLAT?
· Question, did you notice how it barely trades unless volume is “pump” – is it by DST, run by the president of HRGN, Hong Yu and Mrs. Mrs. bin Zhao of Weston, Mass – funded by Lui Dong Hai, chairman of Dixintong Technology Group (D. Phone, the largest smartphone retailer in China) the husband of Mrs. bin Zhao??
· Is the current or future investment coming directly or indirectly from those associated with two (2) directors of BSTG, Jason Jing Chen (chairman of BSTG’s board of directors who resides in Beijing, China and is employed by a subsidiary of Dixintong technology Group – D. Phone), Ting Li (Donghai Securities Co., Ltd) - all reside in China – what are their affiliations??
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.