May 23, 2024 4:35pm

The massive run-down we see in the cell and gene therapy sector after a 1 session mild run-up

“Uncle algo and his electronic dwarfs” came for yesterday’s session for a while and split hurriedly

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! 

Today, the opposite strikes, “Yesterday’s gold became today’s tin!

RegMed Investors (RMi) pre-open: “what’s normal in a volatile market and sector? Reiterating, “the cell and gene therapy sector continues to “recalibrate” its share pricing expectations and I do NOT think this adjustment is completely over.” … https://www.regmedinvestors.com/articles/13472

 

Thursday: The Dow closed DOWN -626.78 points or -1.53%, the S&P closed DOWN -39.17 points or -0.74% while the Nasdaq closed DOWN -65.51points or -0.39%

 

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, then lower as stronger than expected economic data also evaporated the rally on Thursday as investors cut their odds of a rate cut in September.

Economic Data Docket: In the week ending May 18, the advance figure for seasonally adjusted initial claims was 215,000, a decrease of 8,000from the previous week's revised level. The previous week's level was revised up by 1,000 from 222,000 to 223,000. The 4-week moving average was 219,750, an increase of 1,750 from the previous week's revised average. The previous week's average was revised up by 250 from 217,750 to 218,000. The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending May 11, unchanged from the previous week's unrevised rate.

  • The S&P Global purchasing managers index (PMI) for May came in at 54.4 versus 51.3 last month. The flash reading, which came in higher than what economists had expected, showed business activity accelerated at the fastest pace in two years, despite the Fed's efforts to quell price pressures.
  • Sales of new single-family homes fell to a seasonally adjusted rate of 634,000 units last month from March’s revised seasonally adjusted annual rate of 665,000, according to Census Bureau data released Thursday. <That’s lower than Bloomberg consensus expectations of 678,000 units in April>

 

All-time Low:

  • Verve Therapeutics (VERV) at $5.32

 

Advance/Decline (A/D) Line:

  • Thursday’s advance/decline line at the open was negative with 9 incliner, 24 decliners and 2 flats; ending with a negative close of 5 incliners, 28 decliners and 2 flats 

 

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

Q2/24: 9 positive and 8 negative closes

  • April; 16 negative and 6 positive closes

 

Key Metrics:

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

  • Thursday, the IBB was down -1.64% and the XBI was down -3.10%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +0.60 point or +4.87% at 12.89

 

Thursday’s Closing Down (10 of 28):

  • Lenz Therapeutics (LENZ -$2.69 after Wednesday’s -$0.23 after Tuesday’s +$0.05 after Monday’s +$2.24),
  • Vericel (VCEL -$2.06 after Wednesday’s -$1.20 after Tuesday’s +$0.40 and Monday’s +$2.78),
  • Ultragenyx Pharmaceuticals (RARE -$1.58 after Wednesday’s +$0.50 after Tuesday’s -$0.95 and Monday’s -$0.34),
  • Alnylam Pharmaceuticals (ALNY -$1.52 after Wednesday’s +$1.28 after Tuesday’s -$0.62 and Monday’s +$0.84),
  • CRISPR Therapeutics (CRSP -$1.07 after Wednesday’s +$2.04 after Tuesday’s -$0.71 and Monday’s -$0.75
  • Intellia Therapeutics (NTLA -$1.25 after Wednesday’s +$0.26),
  • Beam Therapeutics (BEAM -$0.87),
  • BioLife Solutions (BLFS -$0.90 after Wednesday’s +$0.20),
  • Blueprint Medicine (BPMC -$0.70 after Wednesday’s -$0.92 after Tuesday’s -$0.63 and Monday’s -$0.70),
  • Prime Medicine (PRME -$0.66 after Wednesday’s -$0.58 after Tuesday’s +$0.40 and Monday’s +$0.45),

Flat (2):

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

Thursday’s Closing Up (5 of 5):

  • Agenus (AGEN +$0.26 after Wednesday’s +$0.79 after Tuesday’s +$0.42 and Monday’s -$0.16),
  • Mesoblast (MESO +$0.26),
  • Cellectis SA (CLLS +$0.0099)
  • Homology Medicine (FIXX +$0.0071),
  • Brainstorm Cell Therapeutics (BCLI +$0.00.60 after Wednesday’s -$0.048 and Tuesday’s +$0.053),

 

Q2/24 – May

  • Thursday closed negative with 5 incliners, 28 decliners and 2 flats

 

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

 

Retail trader sentiment is lower on inflation worries. Bullish sentiment has dropped among retail traders in Q2. The survey reported bullish outlook among traders fell to 46% from 53% in the previous quarter. Bearish sentiment gained across all age groups, particularly among young and mid-life investors. < <Charles Schwab Trader Sentiment Survey>

 

Geopolitical concerns will weigh more on markets. As Q1 earnings season winds down, investors will shift more of their attention to geopolitical concerns in the next few months before the next round of earnings. < SimCorp>

 

The top three (3) performing in the session:  

  • Thursday: Agenus (AGEN), Mesoblast (MESO) and Cellectis SA (CLLS)
  • 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:

  • Thursday: Lenz Therapeutics (LENZ), Vericel (VCEL) and Ultragenyx Pharmaceuticals (RARE)
  • 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.