April 19, 2024 7:32pm

The sector responds to markets skittishness and resulting declines

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 Harvard Apparatus RT (OTCQB: HRGN) Chronicles: Ponzi Scheme, a Madoff look-a-life or just a Communist China rip-off?

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The week in Review

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 about – facts in evidence! 

 

Friday: The Dow closed UP +211.02 points or +0.56%, the S&P closed DOWN -43.89 points or -0.88% while the Nasdaq closed DOWN -319.49 points or -2.05%

 

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 mixed after Israel launched a retaliatory attack on Iran.

“There was a relief sigh” as investors realized Israel’s response was “muted” and designed to minimize escalation. Still, investors are very much on edge. Investors are much more aware of geopolitical risks today in their decision-making than they have been for a long time.” <George Ball, chairman of Sanders Morris>

For the week, the Nasdaq fell 5.5%, the Dow eked a gain of +0.01% this week and the S&P lost -3.05%.

The CBOE Volatility index, or VIX, briefly spiked Friday to the market fear gauge's highest levels since late October.

 

All-time Low:

  • Verve Therapeutics (VERX) at $6.45
  • Intellia Therapeutics (NTLA) at $20.95
  • Editas Medicine (EDIT) at $5.45
  • Prime Medicine (PRPE) at $4.51

 

Friday’s RegMed Investors’ (RMi) opening bell: “market, market and the sector pullbacks are driven by Israel retaliation against Iran tempered expectations for a rate cut. On the positive side, upsides will be coming; these pullbacks should sooner not later let the cell and gene therapy sector catch up. “ …  https://www.regmedinvestors.com/articles/13425

 

Advance/Decline (A/D) Line:

  • Friday’s advance/decline line at the open was positive with 19 incliner, 15 decliners and 1 flat; ending with a negative close of 13 incliners, 21 decliners and 1 flat
  • Thursday’s advance/decline line at the open was negative with 15 incliner, 19 decliners and 1 flat; ending with a negative close of 8 incliners, 24 decliners and 3 flats
  • Wednesday’s advance/decline line at the open was negative with 20 incliner, 15 decliners and 0 flat; ending with a negative close of 7 incliners, 28 decliners and 0 flat
  • Tuesday’s advance/decline line at the open was negative with 9 incliner, 25 decliners and 1 flat; ending with a negative close of 6 incliners, 28 decliners and 1 flat
  • Monday’s advance/decline line at the open was negative with 8 incliner, 24 decliners and 3 flats; ending with a negative close of 3 incliners, 30 decliners and 2 flats

 

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

Q2/24: 13 negative and 2 positive closes

Q1/24:

  • March, 1 holiday, 8 positive and 12 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:

  • Friday, the IBB was up +0.06% and the XBI was down -0.78%
  • Thursday, the IBB was down -0.99% and the XBI was down -1.38%
  • Wednesday, the IBB was down -0.85% and the XBI was down -1.12%
  • Tuesday, the IBB was down -0.68% and the XBI was down -0.86%
  • Monday, the IBB was down -1.34% and the XBI was down -2.05%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was up +0.71 points or +3.94% at 18.71
  • Thursday was down -0.30 points or -1.64% at 17.91
  • Wednesday was down -0.19 points or -1.03% at 18.21
  • Tuesday was down -0.83 points or -4.32% at 18.40
  • Monday was up +1.77 point or +10.21% at 19.06

 

Friday’s Closing Down (10 of 21):

  • Blueprint Medicine (BPMC -$2.06 after Thursday’s +$0.52, Wednesday’s +$2.29 Tuesday’s +$0.91 and Monday’s -$2.07),
  • CRISPR Therapeutics (CRSP -$1.11 after Thursday’s +$0.60, Wednesday’s -$2.40, Tuesday’s -$0.76 and Monday’s -$1.95)
  • Ultragenyx Pharmaceuticals (RARE -$1.01 after Thursday’s -$0.73, Wednesday’s +$1.80, Tuesday’s -$0.56 and Monday’s -$4.13),
  • Alnylam Pharmaceuticals (ALNY -$0.75),
  • Solid Biosciences (SLDB -$0.56 after Thursday’s -$0.73 and Wednesday’s +$0.17),
  • Regenxbio (RGNX -$0.42 after Thursday’s -$0.92, Wednesday’s -$0.47 and Tuesday’s -$0.52),
  • Beam Therapeutics (BEAM -$0.41 after Thursday’s $0.00)
  • Harvard Apparatus RT (OTCQB: HRGN -$0.33 after Thursday’s $0.00)
  • Fate Therapeutics (FATE -$0.25 after Thursday’s -$0.23),
  • Ionis Pharmaceuticals (IONS -$0.13),

Flat (1):

  • BioLife Solutions (BLFS $0.00 after Thursday’s +$0.72, Wednesday’s -$0.86, Tuesday’s +$0.32 and Monday’s -$0.82),

Friday’s Closing Up (13 of 13):

  • Sage Therapeutics (SAGE +$0.30 after Thursday’s +$0.47, Wednesday’s -$3.06 and Tuesday’s +$0.31),
  • Agenus (AGEN +$0.34 after Thursday’s -$0.43 after Wednesday’s -$0.90),
  • Intellia Therapeutics (NTLA +$0.25),
  • Adverum Biotechnologies (ADVM +$0.19 after Thursday’s -$0.20),
  • MiMedx (MDXG +$0.13),
  • Mesoblast (MESO +$0.10 after Thursday’s +$0.10, Wednesday’s +$0.32 and Tuesday’s -$0.48),
  • Cellectis SA (CLLS +$0.08),
  • bluebird bio (BLUE +$0.067),
  • Sangamo Therapeutics (SGMO +$0.0264),
  • Generation Bio (GBIO +$0.02 after Thursday’s -$0.20)
  • Brainstorm Cell Therapeutics (BCLI +$0.0177),
  • Precigen (PGEN +$0.01 after Thursday’s +$0.01),
  • Homology Medicine (FIXX +$0.0071 after Thursday’s +$0.0071, Wednesday’s +$0.0071, Tuesday’s +$0.0071 and Monday’s +$0.0071),

 

Q2/24 – April: this week ...

  • Friday closed negative with 13 incliners, 21 decliners and 1 flat
  • Thursday closed negative with 8 incliners, 24 decliners and 3 flats
  • Wednesday closed negative with 7 incliners, 26 decliners and 0 flat
  • Tuesday closed negative with 6 incliners, 28 decliners and 1 flat
  • (4/15) Monday closed negative with 3 incliners, 30 decliners and 2 flats

 

The BOTTOM LINE: putting the week into words … the cell and gene therapy sector is in bad shape.

  • Also, the major indexes are all well below their 50-day moving averages.
  • Various indicators suggest the market and conversely the cell and gene therapy sector is significantly oversold and has been oversold for some time.

 

The stock market suffered sharp losses in the past week. The Dow actually rose a fraction. But the S&P 500 and Nasdaq plunged below their respective 50-day moving averages, suffering their worst week in more than a year. <IBD>

A BIG issue, upcoming earnings season could provide a further negative catalyst for “our” universe. But, as investors saw this past week, it could trigger fresh selling.

 

Friday’s slippin’ and slidin:

  • The Nasdaq suffered the deepest losses and fell 1.5%.
  • Volume on the NYSE and on the Nasdaq was higher compared with the same time on Thursday.
  • The small-cap Russell 2000 rose 0.2%, giving up some early gains.
  • While the Innovator IBD 50 ETF (FFTY) fell 1.7%.
  • The yield on the benchmark 10-year Treasury note fell 3 basis points to 4.61%.

 

It’s STILL all about the lack of demand with plenty of supply …

  • Cell and gene therapy sector equities have sold off … 8 sessions in a row and 13 to date this month of April!

Last week, I wrote that I favor … caution over the next few weeks! This week … proved me true, yet again, again, again, again and again!

 

The top three (3) performing in the session:  

  • Friday: Agenus (AGEN), Sage Therapeutics (SAGE) and Intellia Therapeutics (NTLA)
  • Thursday: BioLife Solutions (BLFS), CRISPR Therapeutics (CRSP) and Blueprint Medicine (BPMC)
  • Wednesday: Blueprint Medicine (BPMC), Ultragenyx Pharmaceuticals (RARE) and Mesoblast (MESO)
  • Tuesday: Blueprint Medicine (BPMC), BioLife Solutions (BLFS) and Sage Therapeutics (SAGE)
  • Monday: Ultragenyx Pharmaceuticals (RARE), Blueprint Medicine (BPMC) and CRISPR Therapeutics (CRSP)

The worst three (3) in the session:  

  • Friday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Ultragenyx Pharmaceuticals (RARE)
  • Thursday: Vericel (VCEL), Regenxbio (RGNX) and Ultragenyx Pharmaceuticals (RARE)
  • Wednesday: Sage Therapeutics (SAGE), CRISPR Therapeutics (CRSP) and Alnylam Pharmaceuticals (ALNY)
  • Tuesday: Vericel (VCEL), Intellia Therapeutics (NTLA) and Alnylam Pharmaceuticals (ALNY)
  • Monday: Vericel (VCEL), Sangamo Therapeutics (SGMO) and Homology Medicine (FIXX)

 

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

The Harvard Apparatus RT (OTC QB HRGN) Chronicles: shows how the “pimp/pump and promote” share pricing works with WHAT news for so long …my treatise is VALIDATED!

Yet a further SCREW-JOB for early and present investors ...

  • Friday closed down -$0.33 with 103 shares traded
  • Thursday closed flat with 151 shares traded
  • Wednesday closed down -$0.02 with 600 shares traded
  • Tuesday closed up +$0.30 with 400 shares <AvgVol-3 mo = 3,796
  • (4/15) Monday closed float with 17 shares traded
  • Friday closed down -$0.33 (was -$0.85 with 1400 shares traded) with 1,649 shares traded
  • Thursday closed flat with 25 shares traded
  • Wednesday closed up +$0.09 with 900 shares traded
  • Tuesday closed flat with 0 shares traded
  • (4/8) Monday closed up +$0.48 with 4,715 shares traded
  • Friday closed flat with 800 shares traded
  • Thursday closed down -$0.68 with 13,300 shares traded
  • Wednesday closed down -$0.002 with 800 shares traded
  • Tuesday closed $0.00 with 11,900 shares traded
  • (4/1) Monday was up +$0.05 with 1,926 shares traded

Question, has its major shareholder and landlord, Harvard Bioscience (HBIO) in the midst of a lay-off; been left holding a depreciating “bag” of shares (5% or 697,112 shares – SC 13G/A filing) from its $4 M share of the wrongful death lawsuit settlement having been issued 4,000 shares of series E 8% convertible Preferred stock at a price of $1,000 per share to satisfy the indemnification obligations (10-K)?  How will HBIO protect itself and its asset/balance sheet when and who will NOT finance this OTCQB: HRGN pig with this its lipstick and lingering odor?

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?

Question, Is it a Ponzi Scheme?

 

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.