March 27, 2024 4:47pm

As “uncle algorithm and his electronic trading dwarfs” scaled the wall of worry close to the end of March and Q1/24

Pre-open Indications: 4 Hits and 1 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.

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

The present and future value of RegMed Investors (RMi) NEWS sheds light on the stem, cell and gene therapy sector’s risks to share pricing and the sector’s upside acrobatics and potential downslides.

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 UP +477.75 points or +1.22%, the S&P closed UP +44.91 points +0.86% while the Nasdaq closed UP +83.82 points or +0.52%

 

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 ticked higher on Wednesday, ahead of crucial economic data, commentary from the Fed's policymakers and a long holiday weekend.

The Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, is due on Good Friday, when the U.S. stock market will be closed.

As of Tuesday’s close, the S&P 500 has added 2.9% in the month and 9.9% in the quarter. The Nasdaq has climbed 1.9% in March and 9.2% during the three-month period, while the Dow has added 1.9% and 5.4% during the respective periods. <CNBC>

 

‘Wednesday’s RegMed Investors’ (RMi) opening bell: “climbing a wall of worry. As inflation data enhances resistance.” …  https://www.regmedinvestors.com/articles/13392

 

Pre-open Indications: 4 Hits < Vericel (VCEL +$2.77), Voyager Therapeutics (VYGR -$0.46), Mesoblast (MESO -$0.44), Beam Therapeutics (BEAM +$0.74)> and 1 Miss < Adverum Biotechnologies (ADVM +$0.51)>

 

Advance/Decline (A/D) Line:

  • Wednesday’s advance/decline line at the open was positive with 24 incliner, 10 decliners and 1 flat; ending with a positive close of 27 incliners, 7 decliners and 1 flat

 

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

Q1/24: March, 8 positive and 11 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:

  • Wednesday, the IBB was up +1.41% and the XBI was up +2.42%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.47 point or -3.55% at 12.77

 

Wednesday’s Closing Down (7 of 7):

  • CRISPR Therapeutics (CRSP -$0.81),
  • Voyager Therapeutics (VYGR -$0.46 after Tuesday’s +$0.76 and Monday’s +$0.25),
  • Mesoblast (MESO -$0.44 after Tuesday’s +$1.73),
  • Graphite Bio (GRPH -$0.09),
  • Brainstorm Cell Therapeutics (BCLI -$0.0598 after Tuesday’s +$0.0050 and Monday’s +$0.085),
  • MiMedx (MDXG -$0.01 after Tuesday’s -$0.21 and Monday’s -$0.21),
  • Bellicum Pharmaceuticals (BLCM -$0.0054)

Flat (1):

  • Harvard Apparatus RT (HTGN $0.00 after Tuesday’s +$0.06 and Monday’s -$0.056)

Wednesday’s Closing Up (10 of 27):

  • Blueprint Medicine (BPMC +$5.12 after Tuesday’s +$1.46 and Monday’s +$1.18),
  • Vericel (VCEL +$2.77 after Tuesday’s +$1.62 and Monday’s +$1.04),
  • Alnylam Pharmaceuticals (ALNY +$2.42),
  • Ultragenyx Pharmaceuticals (RARE +$1.36 after Tuesday’s +$0.04 and Monday’s -$0.43),
  • Intellia Therapeutics (NTLA +$0.76 after Tuesday’s -$0.57),
  • Beam Therapeutics (BEAM +$0.74 after Tuesday’s -$0.47),
  • Solid Biosciences (SLDB +$0.68),
  • Ionis Pharmaceuticals (IONS +$0.55 after Tuesday’s +$0.20 and Monday’s +$1.19),
  • Generation Bio (GBIO +$0.53),
  • Regenxbio (RGNX +$0.51 after Tuesday’s +$0.08 and Monday’s -$0.19),

 

Q1/24 – March

  • Wednesday closed positive with 27 incliners, 7 decliners and 1 flat

 

The BOTTOM LINE: As I had alluded to yesterday, an appetizer got served with a positive cell and gene therapy sector close following Tuesday’s negative and Monday’s positive closes

  • Volume on the Nasdaq compared with the same time on Tuesday.
  • Breadth was strong with advancers outnumbering decliners by nearly 2-to-1 on the Nasdaq.
  • Small caps on the Russell 2000 rose 1.2%.
  • The yield on the benchmark 10-year Treasury note fell three basis points to 4.20%.

Reiterating, “It’s been a difficult month and 1st quarter of ups and downs, it’s a roller coaster of sentiment as earnings are released, a few offerings transpired – at depreciated pricing to get them “done” as I believe the sector has just been “treading water”!

As inflation flails the economy, the Fed, markets and our universe of cell and gene therapy sector; the “al clear” signal has NOT been given especially with a national election on the way and a seriously divided nation of voters.

 

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

Still not finished with Q4 and FY23 earnings releases, remaining:

  • BLCM, OTCQB: HRGN, BCLI, CLLS, GRPH, FIXX, IONS,

 

“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:

  • Wednesday: Blueprint Medicine (BPMC), Vericel (VCEL) and Alnylam Pharmaceuticals (ALNY)
  • Tuesday: Mesoblast (MESO), Vericel (VCEL) and Blueprint Medicine (BPMC)
  • Monday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Vericel (VCEL)

The worst three (3) in the session:  

  • Wednesday: CRISPR Therapeutics (CRSP), Voyager therapeutics (VYGR) and Mesoblast (MESO)
  • Tuesday: Adverum Biotechnologies (ADVM), Intellia Therapeutics (NTLA) and BioLife Solutions (BLFS)
  • Monday: Adverum Biotechnologies (ADVM), Sage Therapeutics (SAGE) 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.