May 8, 2024 4:31pm

More about bumps as sector slips pre and post sector earnings announcements

As I had stated, “let’s not forget about volatility”

A 360-degree review of the who, why, when and what happened in the sector as the market and economics surround your portfolio’s defense or offence.

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 about – facts in evidence! 

 

Wednesday: The Dow closed UP +172.13 points or +0.44%, the S&P closed DOWN -0.03 points or -0.00% while the Nasdaq closed DOWN -29.80 points or -0.18%

 

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 closed mixed again as investors saw their way through some weakness.

Investors are also digesting a slew of Federal Reserve commentary. Boston Fed President Susan Collins said in remarks on Wednesday that the Fed’s interest rate policy will likely need to remain at its current level until inflation is moving “sustainably” toward the central bank’s 2% target. <CNBC>

 

All-time Low;

  • Editas Medicine (DDIT) at $5.05

 

RegMed Investors (RMi) Research Note: Q1/24 earnings reporting dates, net losses, cash positions, revenue and runway outcomes … https://www.regmedinvestors.com/articles/13441   

RegMed Investors (RMi) - Q1/24 Cell and Gene Therapy Earnings Scorecard Results … https://www.regmedinvestors.com/articles/11628

 

Advance/Decline (A/D) Line:

  • Wednesday’s advance/decline line at the open was negative with 4 incliner, 28 decliners and 3 flats; ending with a negative close of 5 incliners, 27 decliners and 3 flats

 

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

Q2/24: 4 positive and 2 negative closes

  • April; 16 negative and 6 positive closes

 

Key Metrics:

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

  • Wednesday, the IBB was down -0.69% and the XBI was down -1.46%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.23 point or -1.74% at 13.00

 

Wednesday’s Closing Down (10 of xx):

  • CRISPR Therapeutics (CRSP -$2.24 after Tuesday’s -$1.53 and Monday’s +$1.17)
  • Alnylam Pharmaceuticals (ALNY -$2.04 after Tuesday’s +$3.11 and Monday’s -$1.11),
  • Vericel (VCEL -$1.83 after Tuesday’s +$2.58 and Monday’s -$0.89
  • Intellia Therapeutics (NTLA -$0.88 after Tuesday’s +$0.16 and Monday’s +$0.12)
  • Ionis Pharmaceuticals (IONS -$0.77 after Tuesday’s -$1.35 and Monday’s +$0.31),
  • BioLife Solutions (BLFS -$0.66 after Tuesday’s +$0.45),
  • Editas Medicine (EDIT -$0.64),
  • Sage Therapeutics (SAGE -$0.59 after Tuesday’s -$0.27 and Monday’s -$0.69)
  • Agenus (AGEN -$0.54 after Tuesday’s -$0.94 and Monday’s -$0.12)
  • Adverum Biotechnology’s (ADVM -$0.53 after Tuesday’s -$0.32 and Monday’s +$0.23)

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped
  • Cellectis SA (CLLS)
  • Harvard Apparatus RT (OTCQB: HRGN)

Wednesday’s Closing Up (5 of 5):

  • Blueprint Medicine (BPMC +$0.23 after Tuesday’s +$2.30 and Monday’s -$0.94)
  • uniQure NV (QURE +$0.07),
  • Brainstorm Cell Therapeutics (BCLI +$0.0620)
  • AxoGen (AXGN +$0.04),
  • Homology Medicine (FIXX +$0.0071),

 

Q2/24 – May

  • Wednesday closed negative with 5 incliners, 27 decliners and 3 flats
  • Tuesday closed negative with 16 incliners, 18 decliners and 1 flat
  • (5/6) Monday closed positive with 17 incliners, 15 decliners and 3 flats
  • Friday closed positive with 22 incliners, 12 decliners and 1 flat
  • Thursday closed positive with 25 incliners, 9 decliners and 1 flat
  • Wednesday closed positive with 28 incliners, 6 decliners and 1 flat

 

The BOTTOM LINE: Diminished sentiment spurred by a mostly Q1/24 LPS (loss-per-share) earnings season fraught with more EPS and revenue estimate losses and also burdened by softer-than-expected labor market data has tempered concerns about the Fed keeping interest rates higher for longer.

 

"The market is still very much waiting for the CPI report next Wednesday. We're basically stuck in a bit of a range here until we get data." <Gennadiy Goldberg, head of U.S. rates strategy at TD Securities in New York>

 

Investors NEED to be cautious at this point. They don't want to over extend until earnings are mid-way completed when the algos and electronic trading will start “picking-up” sticks (i.e., stocks).  As I have written, “this week continues the Q1 financial performance elements of cell and gene therapy companies that sheds light on share value.”

  • Equites are currently trading "a questionable fair value" since they are trading today even lower than Tuesday after recently higher so far this month of May after a rotten April.
  • There is also a "lop-sided risk to the downside."

 

Reporting today and share pricing:

Wednesday

  • CRBU: Q1 loss, misses revenue and EPS estimate
  • VCEL: Q1 loss, surprise revenue up
  • VERV: Q1 loss, tops revenue and EPS estimates
  • EDIT: Q1 loss, revenue miss

Share pricing post earnings … closing today

  • CRBU: (-$0.23)
  • VCEL: (-$1.83)
  • VERV: (-$0.08)
  • EDIT: (-$0.64)

Other Earnings to date: https://www.regmedinvestors.com/articles/11628

  • RARE: Q1 loss
  • SAGE: Q1 loss
  • MDXG: Q1 loss
  • AXGN: Q1 loss
  • BPMC: net income
  • BEAM: Q1 loss, no revenue
  • IONS: Q1 loss, misses revenue and EPS estimate
  • AGEN: Q1 loss, misses revenue and EPS estimate
  • ALNY:  Q1 loss, tops revenue estimate and narrow miss on EPS
  • AXGN: Q1 loss, lags revenue estimates
  • BPMC: Q1 net incomes, surpasses revenue estimates

 

Earnings whispers:

  • BioLife Solutions (BLFS) to deliver a year-over-year increase in earnings on lower revenues. BLFS is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +18.8%. Revenues are expected to be $29.3 million, down 22.3% from the year-ago quarter.
  • Adverum Biotechnologies (ADVM) to deliver a year-over-year increase in earnings on lower revenues
  • CRISPR Therapeutics (CRSP) Revenues in the to-be-reported quarter are likely to have been driven by collaboration revenues from Vertex. Total revenues stands at $8.31 million.
  • From Zacks investment Research

The top three (3) performing in the session:  

  • Wednesday: Blueprint Medicine (BPMC), uniQure NV (QURE) and Brainstorm Cell Therapeutics (BCLI)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Blueprint Medicine (BPMC)
  • Monday: CRISPR Therapeutics (CRSP), Mesoblast (MESO) and Cellectis SA (CLLS)

The worst three (3) in the session:

  • Wednesday: Vericel (VCEL), CRISPR Therapeutics (CRSP) and Alnylam Pharmaceuticals (ALNY),
  • Tuesday: CRISPR Therapeutics (CRSP), Ultragenyx Pharmaceuticals and Ionis Pharmaceuticals (IONS)
  • Monday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Vericel (VCEL

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.