March 12, 2024 5:13pm

The February CPI rose 0.4% as expected and higher than January's 0.3% rise. But the index was up 3.2% versus the 3.1% projected on an annual basis.

The Harvard Apparatus RT (OTC QB HRGN) formerly the Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works <in Bottom Line>

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Insight is about understanding perception and also about putting into context what is relevant to expectation fulfillment.

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! 

 

Tuesday: The Dow closed UP +235.83 points or +0.61%, the S&P closed UP +57.33 points +1.12% while the Nasdaq closed UP +246.35 points or +1.54%

 

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 jumped Tuesday after fresh U.S. inflation data was about in line with expectations.

Investors now turn their attention to the producer price index report due later this week and the Fed’s next monetary policy meeting later this month.

Economic Data Docket: The consumer price index climbed 0.4% in February and 3.2% year over year, the Bureau of Labor Statistics said on Tuesday. Economist polled by Dow Jones expected a 0.4% increase last month and 3.1% year-over-year, respectively. Core inflation, which strips out food and energy from the headline reading, climbed 0.4% in February, compared to a forecast gain of 0.3%.

 

Tuesday’s RegMed Investors’ (RMi) opening bell: “all eyes on weakness. The February reading of the consumer price index, which is set to be released at 8:30 a.m. ET. Economists forecast a monthly gain of +0.4% and a +3.1% increase on headline.” …  https://www.regmedinvestors.com/articles/13367

 

52-week low:  uniQure NV (QURE)

 

Advance/Decline (A/D) Line:

  • Tuesday’s advance/decline line at the open was negative with 3 incliner, 29 decliners and 3 flats; ending with a negative close of 6 incliners, 27 decliners and 2 flats

 

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

Q1/24: March, 2 positive and 6 negative closes

  • February, 1 holiday, 9 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:

  • Tuesday, the IBB was down -0.48% and the XBI was down -0.65%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -1.38 point or -9.07% at 13.84

 

Tuesday’s Closing Down (10 of 27):

  • Alnylam Pharmaceuticals (ALNY -$2,46 after Monday’s -$0.72),
  • Caribou BioSciences (CRBU -$2.20),
  • Intellia Therapeutics (NTLA -$1.76 after Monday’s -$0.43),
  • CRISPR Therapeutics (CRSP -$1.52 after Monday’s -$2.10
  • Regenxbio (RGNX -$0.87 after Monday’s +$0.10)
  • Ultragenyx Pharmaceuticals (RARE -$0.85 after Monday’s -$2.02)
  • Sage Therapeutics (SAGE -$0.83 after Monday’s -$0.91
  • Beam Therapeutics (BEAM -$0.77 after Monday’s -$0.96
  • Verve Therapeutics (VERV -$0.50 after Monday’s -$0.54),
  • Editas Medicine (EDIT -$0.39)

Flat (2);

  • Bellicum Pharmaceuticals (BLCM)
  • Mesoblast (MESO $0.00 after Monday’s +$0.51),

Tuesday’s Closing Up (6 of 6):

  • Blueprint Medicine (BPMC +$0.23 after Monday’s -$2.83
  • Cellectis SA (CLLS +$0-19 after Monday’s +$0.25),
  • Compass Therapeutics (CMPX +$0.07 after Monday’s +$0.04),
  • Voyager (VYGR +$0.03),
  • Adverum Biotechnologies (ADVM +0.02)
  • UniQure NV (QURE +$0.01)

 

Q1/24 – March

  • Tuesday closed negative with 6 incliners, 27 decliners and 2 flats

 

The BOTTOM LINE: Recent data has put a dent in that optimism - Inflation remains elevated!

Quotes:

  • "The February consumer price index will … not … instill more confidence among the Federal Reserve members that inflation is on a sustainable path toward their 2% objective."
  • "A pessimistic scenario is one in which rates are higher for …longer, where inflation reaccelerates and long-term inflation expectations increase, forcing the Fed to resume raising interest rates. This is possible but unlikely, particularly as there is disinflation in the pipeline from lower market rents and a deceleration in nominal wage growth." < Ryan Sweet, chief US economist at Oxford Economics>

 

The cell and gene therapy sector closed Tuesday, Monday, Friday and Thursday negative after Wednesday positive close after Tuesday and Monday’s negative close following the previous Friday’s closed positive …

  • 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>

22 have reported … RegMed Investors (RMi) - Q4/23 & FY23 Cell and Gene Therapy Earnings Scorecard Results https://www.regmedinvestors.com/articles/11628

 

Earnings: Caribou Biosciences (CRBU) Q4/23 net loss of -$34.5 M or -$0.39 per share with a FY23 new loss of -$102.1 M or -$1.38 per share with a runway until Q1/26

  • Shares of Caribou Biosciences (CRBU) crashed -$2.20- or -30.47% lower to $5.02 after Monday’s earnings’ call.
  • … Caribou's pipeline isn't great. The company has just three programs in clinical development right now, all of which are in early-stage clinical studies. Investors prefer more shots on goal rather than fewer opportunities.
  • CB-020 is only in preclinical testing. Importantly, Caribou didn't say it was completely throwing in the towel on the program.
  • CRBU chose its words carefully in the announcement, stating that it had "paused the development" rather than halted all future development.
  • Caribou also said that it will continue to develop its CAR-NK (chimeric antigen receptor-natural killer) cell therapy platform "as these therapies may have potential for the treatment of multiple diseases."
  • CRBU reported Q4 licensing revenue of $3.6 million and a net loss of $34.5 million. However, the big story with the clinical-stage biotech's quarterly update was the pause in developing allogeneic cell therapy CB-020. <Motley Fool with some Henry>

 

As I wrote this a.m., There is ALWAYS a however, the cell and gene therapy sector is DUE a rebound EVEN if it is due to algorithms and electronic trading RECOGNIZING risk and the oversold!!

“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!

 

The top three (3) performing in the session:

  • Tuesday: Blueprint Medicine (BPMC), Cellectis SA (CLLS), and Compass Therapeutics (CMPX)
  • Monday:  Graphite Bio (GRPH), Mesoblast (MESO) and Solid BioSciences (SLDB)

The worst three (3) in the session:  

  • Tuesday: Alnylam Pharmaceuticals (ALNY), Caribou Biosciences (CRBU) and Intellia Therapeutics (NTLA)
  • Monday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Ultragenyx Pharmaceuticals (RARE)

 

BEWARE… How MANY TIMES AM I RIGHT … MORE than MOST!!

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

  • Tuesday closed down -$0.15 with 2,232 shares traded <aver 3-m=2,955 shares>
  • (3/11) Monday closed down -$0.12 was -$0.23 and -$0.28) with 6,020 shares traded
  • Friday closed down -$0.28 with 914 shares traded
  • Thursday closed flat with 7 shares traded
  • Wednesday closed up +$0.50 with 500 shares traded
  • Tuesday closed up +$0.0-9 with 851 shares traded
  • (3/4) Monday closed down -$0.69 with 10,409 shares traded (aver 3-mo= 2,765 shares)
  • (3/1) Friday closed up +$0.05 with 15,125 shares traded

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.