December 22, 2023 5:11pm

Cell and gene therapy sector equites received presents of bundled upside following the release of the Fed's preferred inflation reading, which showed economic pressures cooled in November as sector value was restored. The U.S. stock market will be closed on Monday for Christmas

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.

Investors need to be better informed on what fluctuating economics and markets can do to a cell and gene therapy sector equity, or what impact indications or expectations can have.

Never leave an investor uninformed! A trusted source of factual reporting!

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

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Friday: The Dow closed DOWN -18.38 points or -0.05%, the S&P closed UP +7.88 points or +0.17% while the Nasdaq closed UP +29.11 points or +0.09%

Thursday: The Dow closed UP +322.35 points or +0.87%, the S&P closed UP +48.40 points or +1.03% while the Nasdaq closed UP +185.92 points or +1.26%

 

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 closed mixed on Friday after a key inflation reading came in softer than expected, boosting recent investor optimism that the Fed could lower borrowing costs next year.

Economic Data Docket: The core personal consumption expenditures price index rose 3.2% in November on an annual basis and 0.1% for the month, the Commerce Department said Friday. Economists had expected prices to increase 0.1% for the month and 3.3% from a year ago.

  • Consumer expenditures and income also came in line with expectations for November, rising 0.3% and 0.4%, respectively.
  • Durable goods orders — which include long-lasting items such as airplanes and appliances — ticked up 5.4% higher in November, beating the 2% estimate given by economists.
  • This comes on the heels of a 5.1% decline in October.
  • Excluding a sharp rise in transportation, new orders only increased 0.5%. However, excluding defense, new orders actually rose 6.5%. Transportation equipment let the increase in the overall figure.

 

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

  • Friday’s advance/decline line ended with a positive close of 28 incliners, 5 decliners and 2 flats,
  • Thursday’s advance/decline line ended with a positive close of 28 incliners, 36 decliners and 1 flat,
  • Wednesday’s advance/decline line was negative at the open with 8 incliners, 24 decliners and 3 flats, stayed negative at the mid-day with 12 declined, 9 incliners and 2 flats, ending with a negative close of 2 incliners, 31 decliners and 2 flats,
  • Tuesday’s advance/decline line was positive at the open with 26 incliners, 6 decliners and 3 flats, stayed positive at the mid-day with 24 declined, 9 incliners and 2 flats, ending with a positive close of 26 incliners, 8 decliners and 1 flat,  

 

  • Monday’s advance/decline line was negative at the open with 9 incliners, 25 decliners and 1 flat, stayed negative at the mid-day with 10 declined, 24 incliners and 1 flat, ending with a negative close of 11 incliners, 24 decliners and 0 flat 

 

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

Q4:  December – 7 negative and 9 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:

  • Friday, the IBB was up +2.18% and the XBI was up +3.48%
  • Thursday, the IBB was up +1.58% and the XBI was up +2.43%
  • Wednesday, the IBB was down -2.95% and the XBI was down -4.39%
  • Tuesday, the IBB was up +1.60% and the XBI was up +2.54%
  • Monday, the IBB was down -0.72% and the XBI was down -1.57%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.62 point or -4.54% at 13.03
  • Thursday was up +0.29 point or +2.12% at 13.94
  • Wednesday was up +1.07 point or +8.54% at 13.60
  • Tuesday was down -0.04 point or -0.32% at 12.52
  • Monday was up +0.28 point or +2.28% at 12.56

 

Friday’s Closing Down (5 of 5):

  • Vericel (VCEL -$0.75 after Thursday’s +$1.46)
  • AxoGen (AXGN -$0.15),
  • MiMedx (MDXG -$0.08),
  • Mesoblast (MESO -$0.03)
  • Compass Therapeutics (CMPX -$0.02),

Flat (2):

  • Caribou BioSciences (CRBU)
  • Harvard Apparatus GN (HRGN)

Friday’s Closing Up (10 of 28):

  • Alnylam Pharmaceuticals (ALNY +$9.88 after Thursday’s +2.09, Wednesday’s -$8.45, Tuesday’s +$1.27 and Monday’s +$0.99),
  • Blueprint Medicine (BPMC +$2.90 after Thursday’s +$1.81 and Wednesday’s -$3.84),
  • Ionis Pharmaceuticals (IONS +$2.08 after Thursday’s +$0.78, Wednesday’s -$1.98, Tuesday’s -$0.40 and Monday’s +$1.01),
  • Ultragenyx Pharmaceuticals (RARE +$1.96 after Thursday’s +$0.15, Wednesday’s -$2.82 and Tuesday’s +$2.55)
  • Beam Therapeutics (BEAM +$1.41 after Thursday’s +$0.44, Wednesday’s -$1.88, Tuesday’s +$2.06 and Monday’s -$0.97
  • Intellia Therapeutics (NTLA +$1.16 after Thursday’s +$0.58, Wednesday’s -$2.40, Tuesday’s +$1.67 and Monday’s -$0.43),
  • Editas Medicine (EDIT +$0.49),
  • Prime Medine (PRME +$0.46 after Thursday’s -$0.18
  • Solid Biosciences (SLDB +$0.43),

 

Q4/23 – December

  • Friday closed positive with 28 incliners, 5 decliners and 2 flats
  • Thursday closed positive with 26 incliners, 6 decliners and 1 flat
  • Wednesday closed negative with 2 incliners, 31 decliners and 2 flats
  • Tuesday closed positive with 26 incliners, 8 decliners and 1 flat
  • Monday (12/18) closed negative with 11 incliners, 24 decliners and 0 flat

 

The BOTTOM LINE: I am supposed to be off as the holiday spirit is slowly returning – prayers for my son suffering chemotherapy from cancer.

Ultragenyx Pharmaceuticals (RARE Thursday’s close +$0.15, Friday +$1.48) the Justice Department alleges RARE paid for free genetic tests for patients, and bought test results, to induce prescriptions of its drug Crysvita.

Friday’s backdrop:

  • Benchmark 10-year Treasury yields were up slightly on the day at 3.096%, with the data seen as largely as expected.

Wow:

Regenxbio (RGNX) President and CEO Kenneth Mills sells 45,000 shares …

On 12/19/23, the date of the insider's recent transaction, shares of Regenxbio Inc were trading at $19.69, resulting in a market capitalization of $811.652 million.

RGNX dropped -$0.14 to $18.32 on 386,856 K shares traded

 

Another “chit” for drug discovery:

Bristol Myers Squibb (BMY) today will buy Boston, Mass.  brain drug developer Karuna Therapeutics (KRTX +$102.66 or +47.71% to $317.85 after Thursday’s +$3.81 or +1.80% to $215.19) in a $14 billion deal that supports the pharmaceutical giant’s plans to reestablish neuroscience as an area of focus.

  • Karuna’s chief drug, known as KarXT, is currently under review by the FDA as a treatment for schizophrenia and a potential blockbuster product. The drug is a newer type of medication that doesn’t work like available schizophrenia treatments. It’s already succeeded in three mid- to late-stage trials and, if approved by regulators, could be launched by the end of 2024.
  • Per deal terms announced Friday, Bristol Myers (BMY) will pay $330 share for Karuna, a roughly 53% premium to its closing price on Dec. 21. Net of the cash that Karuna has on hand, the deal is worth about $12. 7 billion.
  • KarXT is also in advanced testing as an adjunctive therapy to existing schizophrenia drugs and as a potential treatment for psychosis in patients with Alzheimer’s disease.
  • The FDA is expected to make a decision on its use in schizophrenia by 9/26/24 of next year. < Ben Fidler & me>

It's time to think ahead to December’s end and 2024’s Q1.

  • Don’t FORGET portfolio December tax selling and a bit of rebalancing … “Investors NEED to start formulating their portfolio outlook into next year.”
  • It might be prudent to harvest and cash in some chips following the past month’s dramatic rally.
  • 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:

  • Friday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and CRISPR Therapeutics (CRSP)
  • Thursday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Vericel (VCEL)
  • Wednesday: Cellectis SA (CLLS) and Adverum Biotechnologies (ADVM)
  • Tuesday: CRISPR Therapeutics (CRSP), Beam Therapeutics (BEAM) and Ultragenyx Pharmaceuticals (RARE)
  • Monday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and Fate Therapeutics (FATE)

The worst three (3) in the session:

  • Friday: Vericel (VCEL), MiMedx (MDXG) and AxoGen (AXGN)
  • Thursday: CRISPR Therapeutics (CRSP), Cellectis SA (CLLS) and Prime Medicine (PRME)
  • Wednesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Blueprint Medicine (BPMC)
  • Tuesday: uniQure NV (QURE), bluebird bio (BLUE) and Ionis Pharmaceuticals (IONS)
  • Monday: Vericel (VCEL), Beam Therapeutics (BEAM) and CRISPR Therapeutics (CRSP)

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.