February 6, 2024 7:53am

Another weak aftermarket forecasting a drag on the sector

News: Sangamo Therapeutics (SGMO +$0.04 to $0.60) announced updated preliminary data from the P1/2 STAAR clinical study evaluating isaralgagene civaparvovec, or ST-920, a wholly owned gene therapy product candidate for the treatment of Fabry disease. Data from 24 patients continued to show durable safety and preliminary efficacy data as of the data cutoff date, which continue to underscore the potential of isaralgagene civaparvovec as a single-dose treatment option for Fabry disease.

Pre-open indications: 2 Positive and 2 Negative Indications

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  RMi provides a trusted source of share pricing intelligence. Join me … in the NO spin zone!

Never leave an investor uninformed!

Remember that overnight and pre-open actions’ futures and global markets doesn't necessarily translate into actual trading in the today’s market session.

There is no breadline for share pricing and fact-based intelligence!

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

 

Tuesday: The pre-open Dow futures are DOWN -0.09% or (-36 points), the S&P futures are DOWN -0.10% or (-5 points) as the Nasdaq futures are DOWN -0.11% or (-19 points)

U.S. futures were slightly lower on Tuesday,

European markets were higher,

Asia-Pacific markets declined while China and Hong Kong surged

 

Henry’omics:

We need to more than consider the economic environment to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes dived as Treasury yields spiked higher as the Dow closed DOWN -274.30 points or -0.71%, the S&P closed DOWN -15.80 points -0.32% while the Nasdaq closed DOWN -31,28 points or -0.20%.X

The decline in stocks came after Fed Chair Powell reaffirmed that a rate cut at the central bank’s March meeting is unlikely. His comments, which were aired on “60 Minutes” Sunday night, led to the 10-year Treasury yield rising about 13 points Monday to 4.16%. <CNBC>

Economic Data Docket: New York Fed’s household debt and credit report for Q4.

 

Monday’s night RegMed Investors (RMi) Closing Bell: “cell and gene therapy sector passes more gas.” … https://www.regmedinvestors.com/articles/13315

 

Q1/24: February – 1 positive and 2 negative closes

  • January: 2 holidays, 11 negative and 8 positive closes

 

Companies in my headlights – It’s your decision; I provide ideas and context:

I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors with insight into sector vulnerabilities and strengths. A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.

Negative Indications:

Monday, Friday, Thursday’s Wednesday and last Tuesday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Sage Therapeutics (SAGE) closed down -$0.50 after Friday’s -$1.23 and Thursday’s +$0.36 with a negative -$0.38 or -1.57% pre-open indication.

Vericel (VCEL) closed up +$0.33 after Friday’s -$0.76, Thursday’s +$0.67 and Wednesday’s -$1.28 with a negative -$0.47 or -1.09% pre-open indication.

 

Positive Indication:

Monday, Friday, Thursday, Wednesday and last Tuesday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Ionis Pharmaceuticals (IONS) closed down -$0.32 after Friday’s -$1.22, Thursday’s -$0.42 and Wednesday’s -$0.51 with a positive +$1.26 or +2.55% pre-open indication.

Prime Medicine (PRME) closed down -$0.14 with a positive +$0.13 or +2.01% pre-open indication

 

 

The BOTTOM LINE: another wet blanket thrown over trading or put in the dryer?

A macro view: On the Nasdaq 1,167 stocks rose and 3,136 fell as declining issues outnumbered advancers by about a 2.7-to-1 ratio.

Some positive biotech news:

  • Novartis (NVS) will buy German biotech MorphoSys (MOR) for $2.9 billion after working together on antibodies for 20 years. MorphoSys' R&D engine has also played a role in drug candidates now at Roche, Eli Lilly and elsewhere.
  • The Swiss drug giant won't get the approved lymphoma drug Monjuvi, though, as the 32-year-old biotech sold off its rights to partner Incyte. Instead, Novartis will get a blood cancer drug, dubbed pelabresib, that is about to be shipped off for regulatory review at the FDA and European Medicines Agency. But mixed clinical results from last fall raised questions over whether it will ultimately secure approval. The late-stage medicine comes from MorphoSys' $1.7 billion purchase of Constellation Pharmaceuticals 2.5 years ago. <Kyle LaHucik, Endpoint News>

The remainder of the month’s trading sessions will be critical as the RegMed sector will begin earnings’ LPS (loss-per-share) season, estimates and consensus which set market reaction. 

  • Coming attractions …Q4 and FY23 reporting season will ALSO report “runways” and those whose cash positions render their future questionable.

That is WHY I focus on INDICATIONS … Skim if you can trim, buy if it will fly and sell if compelled!

  • As I wrote on last week “When it comes to short-term investing or trading; the trend is NOT your friend.”  Just wait a session and the direction will change from tailwinds to headwinds … or NOT!

Tuesday coming after Monday’s actions and thoughts:

  • On Monday, the 10-year U.S. Treasury yield jumped to 4.16%.
  • Fed Chair Powell continued to push back against the prospect of near-term rate cuts, in an interview aired on Sunday. This added to doubts about rate cuts, already kindled by Friday's data, which signaled the labor market's resilience in the face of tight credit conditions. <Reuters>

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!”
  • The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.

 

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. All investments are subject to risks. Investors should consider investment objectives.

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.  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.

Henry McCusker, the editor and publisher of RegMed Investors could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.