December 7, 2023 6:03pm

RegMed Investors (RMi) Research Note: Harvard Apparatus Regenerative Medicine (OTCQB: HRGN) formerly Biostage (BSTG). Watch on Netflix: “Bad Surgeon, Love under the Knife” the HRGN back story of Dr. Paolo Macchiarini famous for his revolutionary stem cell-infused windpipe transplants. Also answers the question of WHY Biostage (BSTG) and its former Chairman, CEO and current HRGN board member David Green paid $5 million dollars to a VICTIM’s family. The Bottom Line: Even lipstick will NOT help this pig!  https://www.regmedinvestors.com/articles/13228

News: Solid Biosciences Inc. (SLDB +$2.34 or +68.42% to $5.76) has received Fast Track Designation from the FDA for SGT-003, it’s next-generation Duchenne muscular dystrophy (Duchenne) gene therapy candidate.

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!

After careful examination of the sector and breathe trends, I STILL come away more cautious. Having lived through the rise and multiple declines of “our” universe’s stock price.

Investors must be better informed on what fluctuating economics and markets can do to an equity, or what impact indications or expectations can have.

 

The Dow closed UP +62.95 points or +0.17%, the S&P closed UP +36.25 points or +0.80% while the Nasdaq closed UP +193.28 points or +1.37%

 

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 ascended, even as traders looked ahead to Friday’s Fed rate inducing jobs report.

The major indexes are all near 52-week highs, but haven't cleared their recent sideways action. A longer pause would be healthy, but a number of stocks have forged handles or pulled back to key levels over the past several days. <IBD>

Economic Data Docket: Weekly jobless claims released Thursday were below economist expectations and a reading of continuing jobless claims declined, indicating that the pace of layoffs hasn’t increased.

 

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

  • Thursday’s advance/decline line was negative with 13 incliners, 21 decliners and 1 flat at the open, the mid-day stayed positive with 19 incliners, 16 decliners and 0 flat, ending with a positive close of 23 incliners, 12 decliners and 0 flat

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

Q4:  December – 1 negative and 4 positive closes

  • November – 11 positives, 1 holiday and 10 negative closes
  • October – 12 negative and 10 positive closes

 

Key Metrics:

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

  • Thursday, the IBB was up +0.71% and the XBI was up +1.23%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +0.090 point or +0.69% at 13.06

 

Thursday’s Closing Down (12 of 12):

  • Ionis Pharmaceuticals (IONS -$0.47 after Wednesday’s -$0.06, Tuesday’s -$1.46 after Monday’s -$0.17),
  • CRISPR Therapeutics (CRSP -$0.93 after Wednesday’s +$0.54, Tuesday’s -$0.91 after Monday’s +$2.86)
  • BioLife Solutions (BLFS -$0.32 after Wednesday’s -$0.24, Tuesday’s -$0.58 after Monday’s +$0.62),
  • Intellia Therapeutics (NTLA -$0.08 and Wednesday’s -$0.04),
  • Brainstorm Cell Therapeutics (BCLI -$0.0753),
  • Cellectis SA (CLLS -$0.07),
  • Fate Therapeutics (FATE -$0.05),
  • Harvard Apparatus GN (HRGN -$0.05 and Wednesday’s +$0.32)? Who would buy this pig?
  • Bellicum Pharmaceuticals (BLCM -$0.0247),
  • bluebird bio (BLUE -$0.02 after Wednesday’s +$0.50),
  • Editas Medicine (EDIT -$0.21),
  • Graphite (GRPH -$0.01 after Wednesday’s -$0.02 and Tuesday’s +$0.02)

Thursday’s Closing Up (10 of 23):

  • Solid Biosciences (SLDM +$2.34 after Wednesday’s -$0.33, Tuesday’s +$0.31 and Monday’s +$0.52),
  • Alnylam Pharmaceuticals (ALNY +$2.24 after Wednesday’s +$4.65, Tuesday’s -$2.50 and Monday’s +$1.36),
  • Blueprint Medicine (BPMC +$1.36 after Wednesday’s -$0.89, Tuesday’s +$0.59 and Monday’s +$0.70)
  • Regenxbio (RGNX +$0.82),
  • Vericel (VCEL +$0.62 after Wednesday’s -$1.47 after Tuesday’s -$0.93 and Monday’s +$0.41),
  • Verve Therapeutics (VERV +$0.42 after Wednesday’s +$0.92 and Tuesday’s -$0.44),
  • Ultragenyx Pharmaceuticals (RARE +$0.31 after Wednesday’s -$0.90, Tuesday’s +$0.79 after Monday’s +$1.09),
  • Voyager Therapeutics (VYGR +$0.25),
  • uniQure NV (QURE +$0.25 after Wednesday’s +$0.32, Tuesday’s -$0.37 after Monday’s -$0.04),
  • Prime Medicine (PRME +$0.17 after Wednesday’s +$0.54 and Tuesday’s -$0.22)

 

Q4/23 – December

  • Thursday closed positive with 23 incliners, 12 decliners and 0 flat

 

The BOTTOM LINE: “I remain a skeptic, as electronic trading remains the impetus to, I believe a cell and gene therapy sector’s artificial high.

  • I warned that markets have been too optimistic about rate cuts and maintain investors should consider getting defensive” … if dead wood or too struggling share pricings are in the portfolio; especially those desperately needing a financing, lacking a partner, restructuring and needing a financing or just wallowing in the market
  • Reiterating, “Investors NEED to start formulating their portfolio outlook into next year.”
  • I also DON’T TRUST totally in the THIS market -- it’s usually a signal to lighten the load of the sector’s upside movers.
  • Being that I have concerns over the upside moves that usually end in downward sells as the risk/reward profile doesn’t always compel elevated and “dramatic” i.e., sudden equity pricing.
  • It might be prudent to harvest and cash in some chips following the past month’s dramatic rally.

What’s behind the numbers:

  • Weekly jobless claims lower than expected
  • Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. <Reuters>
  • The benchmark 10-year Treasury yield moved to 4.15% from 4.109% on Wednesday. Rising yields make mortgages and credit card debt more expensive.
  • The small-cap Russell 2000 climbed 0.9%.

 

Looking ahead, investors are closely watching the U.S. jobs report on Friday, which can lead to a more outsized move in yields and equities????

 

It's time to think ahead to December. It's usually an important month for the Nasdaq.

  • Don’t FORGET portfolio December tax selling and a bit of rebalancing
  • And then comes January and with worries that the U.S. economy will be slowing down, the potential for continued Middle East violence and, of course, the real prospect of bitterly contested elections across all of the United States. <The Street>

The top three (3) performing in the session:

  • Thursday: Solid Biosciences (SLDB), Alnylam Pharmaceuticals (ALNY) – 4x and Blueprint Medicine (BPMC)
  • Wednesday: Alnylam Pharmaceuticals (ALNY) – 3x, Verve Therapeutics (VERV) and CRISPR Therapeutics (CRSP)
  • Tuesday: Alnylam Pharmaceuticals (ALNY) – 2x, Ionis Pharmaceuticals (IONS) -2x and Beam Therapeutics (BEAM)
  • Monday: CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY) and Ultragenyx Pharmaceuticals (RARE)

The worst three (3) in the session:

  • Thursday: CRISPR Therapeutics (CRSP), Ionis Pharmaceuticals (IONS) and BioLife Solutions (BLFS)
  • Wednesday: Vericel (VCEL), Ultragenyx Pharmaceuticals (RARE) – 2x and Blueprint Medicine (BPMC) -2x
  • Tuesday: Ultragenyx Pharmaceuticals (RARE), Blueprint Medicine (BPMC) and Solid Biosciences (SLDB)
  • Monday: Ionis Pharmaceuticals (IONS), Cellectis SA (CLLS) and Fate Therapeutics (FATE)

Welcome to my world of defining the “grey’ in our universe!

  • Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”

 

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.