May 22, 2024 5:00pm

It’s an honor to be considered the “canary in the (sectors) coal mine”!  I devote my time to collection and analysis of information/intelligence to assist investors in the perception of sector vulnerabilities and strengths – it’s more than opinion, the facts and truth need to be recognized!

News: The estate of Henrietta Lacks can proceed with a lawsuit against Ultragenyx Pharmaceutical (RARE) over the use of cells taken from Lacks’ body in the 1950s, as ruled by a Maryland federal court (on Monday).

Anyone who reads my posts, knows that I am about making money in a portfolio, no matter what happens in the sector

Never leave an investor uninformed!

 

Yesterday’s tin became today’s gold!

RegMed Investors (RMi) pre-open: “every time, I read about record market highs I squint. Although after 4 follow-on sector low sessions, a weak aftermarket with too many oversold, I consider bottom fishing and building cash at the same time” … https://www.regmedinvestors.com/articles/13470

 

Wednesday: The Dow closed DOWN -201.95 points or -0.51%, the S&P closed DOWN -14.40 points or -0.27% while the Nasdaq closed DOWN -31.08 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 traded lower Wednesday as the minutes from the Federal Reserve’s May meeting raised concerns of persistent inflation, indicating the central bank may NOT cut interest rates soon.

Economic Data Docket: Existing home sales unexpectedly fell in April, indicating a potential cooldown in the housing market.  Mortgage applications to buy new homes dropped for the 4th week in 5. Fed still worried about inflation, minutes showed.

 

From the news on RARE, “U.S. District Judge Deborah Boardman rejected RARE’s motion to dismiss the case, determining that the estate had plausibly claimed that RARE wrongly profited from its research using the “immortal” HeLa cell line.

  • The current lawsuit against RARE was initiated days after the Thermo Fisher (TMO) settlement. The estate accused Ultragenyx of using HeLa cells “like a dairy farm treats cows” to mass-produce materials for gene therapy.
  • RARE defended its position by emphasizing the significant impact of HeLa cells on medical research but argued that the estate had targeted the wrong defendant under an invalid legal theory in pursuit of non-existent “huge profits.” However, Boardman denied Ultragenyx’s motion to dismiss, stating that the estate’s case was robust enough to continue.

 

Advance/Decline (A/D) Line:

Wednesday’s advance/decline line at the open was negative with 12 incliner, 22 decliners and 3 flats; ending with a positive close of 18 incliners, 15 decliners and 2 flats 

 

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

Q2/24: 9 positive and 7 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 UP +0.72% and the XBI was UP +0.66%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.38 point or +3.20% at 12.24

 

Wednesday’s Closing Down (10 of 15):

  • Vericel (VCEL -$1.20 after Tuesday’s +$0.40 and Monday’s +$2.78
  • Blueprint Medicine (BPMC -$0.92 after Tuesday’s -$0.63 and Monday’s -$0.70),
  • Prime Medicine (PRME -$0.58 after Tuesday’s +$0.40 and Monday’s +$0.45),
  • Lenz Therapeutics (LENZ -$0.23 after Tuesday’s +$0.05 after Monday’s +$2.24),
  • Voyager Therapeutics (VYGR -$0.14),
  • Solid Biosciences (SLDB -$0.12 after Tuesday’s -$0.61 and Monday’s +$0.17),
  • MiMedx (MDXG -$0.10),
  • Fate Therapeutics (FATE -$0.05 after Tuesday’s -$0.21),
  • Brainstorm Cell Therapeutics (BCLI -$0.048 after Tuesday’s +$0.053),
  • Compass Therapeutics (CMPX -$0.04),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Tuesday’s +$0.15 and Monday’s $0.00),

Wednesday’s Closing Up (10 of 18):

  • CRISPR Therapeutics (CRSP +$2.04 after Tuesday’s -$0.71 and Monday’s -$0.75
  • Alnylam Pharmaceuticals (ALNY +$1.28 after Tuesday’s -$0.62 and Monday’s +$0.84),
  • Agenus (AGEN +$0.79 after Tuesday’s +$0.42 and Monday’s -$0.16),
  • Ionis Pharmaceuticals (IONS +$0.63 after Tuesday’s -$1.35 and Monday’s +$1.41),
  • Ultragenyx Pharmaceuticals (RARE +$0.50 after Tuesday’s -$0.95 and Monday’s -$0.34),
  • Intellia Therapeutics (NTLA +$0.26),
  • uniQure NV (QURE +$0.24),
  • BioLife Solutions (BLFS +$0.20),
  • Regenxbio (RGNX +$0.14 and Tuesday’s $0.54),
  • AxoGen (AXGN +$0.11)

 

Q2/24 – May

  • Wednesday closed positive with 18 incliners, 15 decliners and 2 flats
  • Tuesday closed negative with 9 incliners, 24 decliners and 3 flats
  • (5/20) Monday closed negative with 15 incliners, 16 decliners and 4 flats

 

The BOTTOM LINE:  As I stated this a.m., “every time, I read about record market highs I squint … I consider bottom fishing and building cash at the same time.”

  • U.S. stock indexes pulled back from their records as concerns about high interest rates weighed on the market.

The cell and gene therapy sector managed to grind out some better highs today as markets “meandered.”

  • Health care was the only positive sector in the S&P 500 trading Wednesday, adding about 0.15%.

 

“The hawkish tone of the minutes from the Federal Reserve’s latest meeting indicates “higher for longer is the official mantra.”  <Chris Zaccarelli, chief investment officer for Independent Advisor Alliance>

 

The top three (3) performing in the session:  

  • Wednesday: CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY) and Agenus (AGEN)
  • Tuesday: Sage Therapeutics (SAGE), Prime Medicine (PRME) and Mesoblast (MESO)
  • Monday: Vericel (VCEL), Lenz Therapeutics (LENZ) and Ionis Pharmaceuticals (IONS) 

The worst three (3) in the session:

  • Wednesday: Vericel (VCEL), Blueprint Medicine (BLMC) and Prime Medicine (PRME)
  • Tuesday: Ultragenyx Pharmaceuticals (RARE), Ionis Pharmaceuticals (IONS) and CRISPR Therapeutics (CRSP)
  • Monday: CRISPR Therapeutics (CRSP), Blueprint Medicine (BLMC) and Sage Therapeutics (SAGE)

 

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.