June 26, 2024 4:34pm

In which the sector’s share pricing submerges as quickly as possible to avoid further attack

It’s coming, the end of Q2 and 1stH (half)

I say today what others won't, so you can do what others can't!

Never leave an investor uninformed! 

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Wednesday: The Dow closed UP +15.64 points or +0.04%, the S&P closed UP +8.60 points or +0.16% while the Nasdaq closed UP +87.50 points or +0.49%

 

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 barely positive on Tuesday as investors evaluate their holdings following a drooping 1st H (half) pf 2024.

Cell and gene therapy sector slipped as investors await Thursday’s presidential debate and fresh inflation data on Friday with the release of May’s personal consumption expenditures price index.

Economic Data Docket: Home sales slumped in May while the median sales price nudged lower. Sales of new single-family homes totaled 619,000 for the month, down 11.3% from the upwardly revised figure for April, which was revised all the way up to $698,000 from the initial estimate of $634,000. The median sales price was $417,400, down $500 from the previous month, while the average sales price climbed to $520,000, compared to $503,700 in April.

 

Metrics & Advance/Decline (A/D) Line:

Wednesday’s advance/decline line at the open was negative with 8 incliner, 24 decliners and 3 flats; ending with a negative close of 9 incliners, 22 decliners and 4 flats

  • the IBB was down -1.15% and the XBI was down -0.96%
  • the VIX down -0.34 point or -2.65% at 12.50

 

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

  • June: 1 market holiday, 6 positive and 11 negative closes

 

Wednesday’s Closing Down (10 of 22):

  • Blueprint Medicine (BPMC -$2.47 after Tuesday’s +$0.45 after Monday’s +$1.87)
  • Intellia Therapeutics (NTLA -$1.09 after Tuesday’s -$1.00 after Monday’s +$0.78),
  • Prime Medicine (PRME -$0.82 after Tuesday’s -$0.35),
  • Regenxbio (RGNX -$0.81 after Tuesday’s -$0.47 after Monday’s +$0.77),
  • Agenus (AGEN -$0.66 after Tuesday’s -$0.36 after Monday’s +$0.67),
  • Lenz Therapeutics (LENZ -$0.65 after Tuesday’s -$0.44 after Monday’s -$0.28),
  • Fate Therapeutics (FATE -$0.46),
  • Verve Therapeutics (VERV -$0.21),
  • Editas Medicine (EDIT -$0.16),
  • Caribou Biosciences (CRBU -$0.14)

Flat (4):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Compass Therapeutics (CMPX),
  • Harvard Apparatus RT (OTCQB: HRGN $0.00 after Tuesday’s +$0.25 with only 100 shares traded)
  • Homology Medicine (FIXX) – under $1.00

Wednesday’s Closing Up (9 of 9):

  • Alnylam Pharmaceuticals (ALNY +$5.02 after Tuesday’s +$17.26 after Monday’s +$57.20
  • Vericel (VCEL +$0.87 after Tuesday’s -$1.30 after Monday’s +$1.19) 
  • Ionis Pharmaceuticals (IONS +$0.70 after Tuesday’s +$2.32 after Monday’s +$2.85),
  • Ultragenyx Pharmaceuticals (RARE +$0.68 after Tuesday’s +$0.43 after Monday’s -$0.18)
  • CRISPR Therapeutics (CRSP +$0.68 after Tuesday’s -$1.99 after Monday’s +$1.70),
  • Beam Therapeutics (BEAM +$0.59 after Tuesday’s -$0.58 after Monday’s +$1.89),
  • AxoGen (AXGN +$0.22 after Tuesday’s +$0.05),
  • BioLife Solutions (BLFS +$0.13),
  • Adverum Biotechnologies (ADVM +$0.07 after Tuesday’s +$0.07),

 

The week/month to date:

  • Wednesday ended with a negative close of 9 incliners, 22 decliners and 4 flats
  • Tuesday ended with a negative close of 11 incliners, 22 decliners and 2 flats
  • (6/24) Monday ended with a positive close of 24 incliners, 8 decliners and 3 flats

 

The BOTTOM LINE: Sector equites (within my cover ed 35 large group) dived as investors await fresh inflation data on Friday with the release of May’s personal consumption expenditures price index.

Never overlook the ripple effect of negative spurts in the sectors daily sessions.

I have written to become more cautious on sector equities …

  • “Investors need to reassess their portfolio strategies… as I had stated: We are also about to see share pricing rotation or profit taking as Q2 and 1st H (first half) ends this Friday and as sector companies prepare for LPS (loss-per-share) quarterly earnings releases.  So, what are share pricing themes that investors can be comfortable with for a short or near- term time horizon i.e., Q3?” <me>

 

Some part of a why:

The Nasdaq opened mildly lower and fell no more than 0.2%. But the index switched gears and gained 0.3% in recent action. The Russell 2000 also stayed in the laggards' camp; with the index standing at one point at 2010 at the day's low, it slipped 0.4%, then trimmed that loss to 0.2%. Volume was moving 16% higher vs. the same time Tuesday on the Nasdaq. <IBD>

 

Whether or not this or the last weeks and a review of May’s month’s volatility in the sector is NOT the start of something deeper, but a sum of what remains to be seen in the next few months.

The convergence of risks ties share pricing, inflation-oriented releases, politics, trading with the lack of news has only increased the concern about short and near-term performance.

 

Let get to 3 things that you need to know for Wednesday as you prep for the next trading day …

  • 4th week—1 positive and 2 negative closes
  • 3rd week of June, the cell and gene therapy sector experienced 1 market holiday, 3 negative closes and ended Friday with a positive close as options were covered
  • 2nd week of June … negative closes on Friday and Thursday after Wednesday ascended positively as Tuesday drifted lower, retreating from Monday’s highs.
  • 1st week of June: Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

 

The top three (3) performing in the session:   

  • Wednesday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Ionis Pharmaceuticals (IONS)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and Blueprint Medicine (BPMC)  
  • Monday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and Prime medicine (PRME)

The worst three (3) in the session:   

  • Wednesday: Intellia Therapeutics (NTLA), Blueprint Medicine (BPMC) and Lenz Therapeutics (LENZ)
  • Tuesday: CRISPR Therapeutics (CRSP), Vericel (VCEL) and Intellia Therapeutics (NTLA)  
  • Monday: Lenz Therapeutics (LENZ), Ultragenyx Pharmaceuticals (RARE) and Mesoblast (MESO)

 

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 it’s 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.