February 28, 2024 5:27pm

investor sentiment is capricious, especially as the cell and gene therapy sector exits some highs in Q4 and FY23 earnings season while the outlook for the US economy remains uncertain

Earnings: QURE, EDIT, VERV, MDXG, VYGR

Pre-open Indications: 7 Hits and 3 Miss

Subscription is coming; a “buck” a day will keep your portfolio in play - be a subscriber to continue reading!

A 360-degree review of the who, why, when and what happened in the sector as the market and economics surround your portfolio defense. The Bottom Line includes earnings and “whispers”!

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

One can take a good or bad feeling, re-frame it, and suddenly that feeling is the solution. Not me, I don’t run from any feeling but, take that sensation itself as a sharpened stick to “poke’ mainstream thinking.

I write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others will not say or write about – facts in evidence! 

 

Wednesday: The Dow closed DOWN -23.39 points or -0.06%, the S&P closed DOWN -8.42 points -0.17% while the Nasdaq closed DOWN -87.56 points or -0.55%

 

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 were down as “stocks ticked lower Wednesday as investors looked ahead to a key inflation report due later this week”.

Economic Data Docket: Data confirmed the U.S. economy grew at a solid clip in Q4 on strong consumer spending but it appears to have lost some speed early in 2024.

  • The Commerce Department's 2nd reading for Q4 gross domestic product showed a 3.2% increase vs. estimates of 3.3% on an annual basis. But personal consumption expenditures rose 3.0% vs. the 2.8% estimate.

 

Pre-open Indication: 7 Hits <Sell into Strength - Blueprint Medicine (BPMC -$4.34), Fate Therapeutics (FATE -$0.32), Ionis Pharmaceuticals (IONS -$0.87), Regenxbio (RGNX -$0.12); Negative - Beam Therapeutics (BEAM -$1.46), CRISPR Therapeutics (CRSP -$1.44), Ultragenyx Pharmaceuticals (RARE -$0.91)> 3 MISS < Intellia Therapeutics (NTLA +$1.78), Verve Therapeutics (VERV +$0.42), Vericel (VCEL -$0.20)>

 

Wednesday’s RegMed Investors’ (RMi) opening bell: “the rising tide eventually crests. Investors should become MORE cautious; profit as the earnings’ season starts to evaporate share pricing.” … https://www.regmedinvestors.com/articles/13348

 

Advance/Decline (A/D) Line:

  • Wednesday’s advance/decline line at the open was negative with 14 incliner, 18 decliners and 3 flats; ending with a negative close of 10 incliners, 25 decliners and 0 flat

 

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

Q1/24: February, 1 holiday, 8 negative and 11 positive closes

  • January: 2 holiday, 12 negative and 8 positive closes

 

Key Metrics:

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

  • Wednesday, the IBB was down -1.04% and the XBI was down -1.32%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.38 point or +2.83% at 13.81

 

Wednesday’s Closing Down (10 of 25):

  • Blueprint Medicine (BPMC -$4.34 after Tuesday’s +$4.74 and Monday’s +$5.56
  • Alnylam Pharmaceuticals (ALNY -$3.77),
  • Beam Therapeutics (BEAM -$1.46 after Tuesday’s +$9.27 and Monday’s +$1.81),
  • CRISPR Therapeutics (CRSP -$1.44 after Tuesday’s +$3.06 and Monday’s +$2.07),
  • Ultragenyx Pharmaceuticals (RARE -$0.91 after Tuesday’s +$3.41 and Monday’s +$0.77),
  • Ionis Pharmaceuticals (IONS -$0.87 after Tuesday’s +$1.31 and Monday’s +$0.74),
  • Solid BioSciences (SLDB -$0.63),
  • AxoGen (AXGN -$0.34),
  • Fate Therapeutics (FATE -$0.32),
  • Caribou Biosciences (CRBU -$0.22 after Tuesday’s +$0.84),

Wednesday’s Closing Up (10 of 10):

  • Editas Medicine (EDIT +$2.21 after Tuesday’s +$0.80)
  • Intellia Therapeutics (NTLA +$1.78 after Tuesday’s +$3.36 and Monday’s +$1.56),
  • Verve Therapeutics (VERV +$0.42 after Tuesday’s +$3.10 and Monday’s +$0.99),
  • Generation Bio (GBIO +$0.21),
  • Graphite Bio (GRPH +$0.12),
  • Voyager Therapeutics (+$0.06),
  • Harvard Apparatus RT (HRGN +$0.05 after Tuesday’s -$0.01 and Monday’s -$0.09),
  • Mesoblast (MESO +$0.02),
  • Homology Medicine (FIXX +$0.005)
  • Brainstorm cell Therapeutics (BCLI +$0.0036)

 

Q1/24 – February

  • Wednesday closed negative with 10 incliners, 25 decliners and 0 flat

 

The BOTTOM LINE: The stock market today closed the day negative …

The cell and gene therapy sector zipped-lined to the downside Wednesday after closing positive on Tuesday after Monday positive close following after Friday’s positive close after Thursday and Wednesday’s barely positive close

Earnings, net losses, and per-share losses, runways and guidance have begun Q4 and FY23 which WILL be crucial to continue downside force in the sector as history has taught us i.e., investors.

I have seen 4 net income for the Q4 and FY23 - MiMedx (MDXG) and Voyager Therapeutics (VYGR) followed by Q4 CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM) <but each had a FY23 loss>

13 have reported …

Wednesday – QURE, EDIT, VERV, MDXG, VYGR

Tuesday -BEAM, VERV, RGNX;

Monday -FATE;

Last week -NTLA, CRSP, IONS, SAGE, RARE, BPMC and ALNY.

 

Earnings - today:

UniQure NV (QURE);

  • Q4/23 – hiding #’s
  • FY23 net loss of -$308.5 M or -$6.47 with a cash position of $617.9 M and a runway until 2025

Editas Medicine (EDIT):

  • Q4/23 – net loss of -$18.9 M or -$0.23 per share
  • FY23 net loss of -$153.2 M or -$2.02 with a cash position of $427.1 M and a runway until 2026

MiMedx (MDXG:

  • Q4/23 – net income of +$53 M or +$0.32 per share
  • FY23 net loss of -$58.228 M or +$37 with a cash position of $82 M and a runway until 2025

Verve Therapeutics (VERV)

  • Q4/23 – net loss of -$48.4 M or -$0.69 per share
  • FY23 net loss of -$200.1 M or -$3.12 with a cash position of $ M and a runway until 2026

Voyager Therapeutics (VYGR:

  • Q4/23 – net income of +$56.4 M or +$1.28 per share
  • FY23 net income of +$132.3 M or +$3.08 per share with a cash position of $230.9 M (post FY23 $431 M and a runway until 2027

 

Again, “investor sentiment can be fragile, especially as markets sit at record high levels when the outlook for the US economy remains uncertain.”

I ALSO reiterate, “Don't chase the cell and gene therapy sector, especially with the Nasdaq extended.”

Short and non-sweet: SELL into STRENGTH – accumulate some “powder” i.e., cash!

 

Vericel (VCEL) … earnings whisper

  • Vericel Corporation (VCEL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023.
  • Expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +50%.
  • Revenues are expected to be $65 million, up 23.4% from the year-ago quarter. <ZACKS>

 

The top three (3) performing in the session:

  • Wednesday: Editas Medicine (EDIT), Intellia Therapeutics (NTLA) and Verve Therapeutics (VERV)
  • Tuesday: Beam Therapeutics (BEAM), Blueprint Medicine (BLMC) and Ultragenyx Pharmaceuticals (RARE)
  • Monday: Blueprint Medicine (BLMC), CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM)

The worst three (3) in the session:  

  • Wednesday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BLMC) and Beam Therapeutics (BEAM)
  • Tuesday: BioLife Solutions (BLFS), Compass Therapeutics (CMPX) and Vericel (VCEL)
  • Monday: Solid Biosciences (SLDB), Cellectis SA (CLLS) and Harvard Apparatus RT (HRGN)

 

BEWARE… The Harvard Apparatus RT (OTCQB HRGN) formerly the Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works …my treatise is VALIDATED!

  • Wednesday closed up =$0.05 WITH 12,187 shares traded (aver 3-mo=2,311 shares)
  • Tuesday dropped -$0.01 with 1,314 shares traded,
  • (2/26) Monday closed down -$0.09 with 350 shares traded
  • Friday closed up +$0.0625 with 8,114 shares traded <aver 3-mo = 2,186>
  • Thursday closed up +$0.0075 with 15,907 shares traded
  • Wednesday close down -$0.02 with 1,106 shares traded,
  • Tuesday closed up +$0.24 with 24,963 shares traded <3-month average = 1,545 shares> WOW, if this doesn’t prove my point – nothing will!!

Did you notice how it barely trades unless volume is being “pumped.”  This question needs to be answered as HRGN is desperate to finance by any means as past Chinese private placement investors must be feeling … WHAT … TAKEN to the cleaners?

 

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.