April 6, 2016 5:54pm

 

Ranking Wednesday’s end-of-day trading indications – I had said in the pre-open, it was a day of safety – in other words, hold, don’t sell and the sector closed positive with 29 hit, and 13 misses

 

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Companies mentioned: AAVL, ADRO, AGTC, AST, BLCM, BSTG, BTX, CLBS, CLLS, HSGX, JUNO, KITE, NWBO, ONCE, PSTI, QURE, RGNX and VCEL

 

 

 

There is one thing that everyone needs, and that's interpretation and translation of intelligence, not just news or information - we get too much!

  • To that end, I report a matrix of variables designed for investor’s consideration concerning the stem, cell and gene therapy regenerative medicine portfolio to track and monitor its pricing metric;

The takeaway is that investor need to decide what actions to take, or not take, based on their specific situation.

 

 

U.S. stocks closed higher Wednesday, led by gains in health care and energy, after the release of the Fed meeting minutes. Buying accelerated into the close, with the Dow ending about 0.64% higher. The NASDAQ outperformed, ending 1.59% higher.

The major averages temporarily pared gains after the Federal Open Market Committee March meeting minutes showed several policymakers expressed caution over April hike, while some said an April hike might be warranted. Many participants indicated "heightened global risks and the asymmetric ability of monetary policy to respond to them warranted caution in making adjustments to the stance of U.S. monetary policy," the minutes said.

U.S. stocks closed lower Tuesday, following declines in overseas developed markets on soft data, despite gains in oil prices and better U.S. data.

 

The NASDAQ closed UP +76.78 or +1.59% to 4,920.71 and the DOW closed UP +112.73 or +0.64% to 17,716.05.

 

 

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector – the advance/decline line scenario of our 43 covered companies.

  • Wednesday, the stem, cell and gene therapy and regenerative medicine sector opened neutral with an A/DL of 20/20 and 3 flats;
  • The mid-day flipped positive with an A/DL of 32/11 with 0 flat;
  • The closing bell rang positive with A/DL of 29/13 with 1 flat

 

 

Earnings update:

 

 

Henry’omics:

Undergoing constant volatility, “our” universe is higher than it was in January. A number of the stem, cell and gene therapy regenerative medicine sector companies have taken hits, but overall most have rebounded from each dip but, incrementally.

  • The iShares Nasdaq Biotechnology ETF (IBB) surged more than 5.96%.

The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector opened neutral, flipped positive at the mid-day  and closed … positive (of 43 covered companies).

  • The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, declined 5.8% to near 14.5.

A little-known indicator of risk perception among stock investors is flashing caution. That indicator measures the relative risk level of small-cap versus large-cap stocks. And when it leans too far one way or the other, it historically has signaled a change in the broader stock market.

 

 

Out and about:

Biostage (BSTG) closed DOWN -$0.04 to $1.90 after yesterday’s +$0.08 or $1.94 following Monday’s $1.86 and Friday’s $1.82 as the company “makes the rounds” –after the name change and platform “regeneration”! The month of April started at $1.82 while March started at $1.33 and ended at $1.65.

  • Day versus week as compared to month was linked to quarterly share pricing results – a plus!

 

Caladrius Biosciences (CLBS) closed DOWN -$0.0519 to $0.708 after yesterday’s $0.76 and Monday’s $0.76 as compared to Friday’s $0.74.

  • When CEO Mazzo assumed the role, the stock was trading at $3.75 – so where is “his” value and commitment to shareholders?

 

The brother and sisters are acting better …

  • Asterias Biotherapeutics (NYSEMKT: AST) closed UP +$0.14 to $4.75 after yesterday’s $4.61, Monday’s 4.42 and Friday’s $4.58;
  • BioTime (NYSEMKT: BTX) closed UIP +$0.03 to $3.25 after yesterday’s $3.22, Monday’s $3.15 following Friday’s $2.92;

New management helps but, I haven’t seen ANY out-reach of explanation of unlocking value by the complex intra and inter connecting corporations and their back and forth financing of their holdings.  Having been part of the initial days of Thermo Electron now Thermo Fisher Scientific (TMO) – unbundling and definition is more than needed!

 

A good day for gene therapy …

  • Applied Genetics Technologies (AGTC) closed UP +$1.13 to $16.74 after yesterdays -$0.49;
  • Avalanche Biotechnologies (AAVL) also closed UP +$0.14 to $5.49 after yesterday’s close -$0.06;
  • bluebird bio (BLUE) closed UP again +$5.91 to $51.57 after yesterday’s +$0.12– Monday it was up +$2.08. Can it last?
  • Regenxbio (RGNX) closed UP +$0.99 or +9.20% to $11.75 after yesterday’s $10.76 while Monday was down -$0.08;
  • Spark Therapeutics (ONCE) closed UP +$3.61 or +11.22% to $35.78 after yesterday’s +$0.34 or +1.07% after Monday’s $31.83. ONCE is closest to securing the first-ever FDA approval for a gene therapy;
  • Exception: uniQure (QURE) closed DOWN -$0.36 or -2.47% to $14.21 after yesterday’s +$1.27 or +9.55% which was down -$0.45 Monday. Glybera, which costs more than $1 million per treatment with conditional approval in Europe

 

The immuno-oncology and CAR-T’s are UP and in favor again …

  • Aduro Biotech (ADRO) closed UP +$1.39 to $14.75;
  • Bellicum Pharma (BLCM) closed UP +$0.78 to $11.19;
  • Cellectis SA (CLLS) closed UP +$1.84 to $30.99;
  • Juno Therapeutics (JUNO) closed UP +$2.70 to $42.24;
  • Kite Pharma is UP +$3.69 to $53.72;

 

Histogenics (HSGX) is also back on the merry-go-round! HSGX closed down again -$0.04 to $2.43 after yesterday’s $2.47 following Monday’s +$2.56 and Friday’s +$2.39.

  • You have to motivate the retail side to the advantages of this stock.

 

Northwest Bio (NWBO) closed UP +$0.07 to $1.56 having dropped yesterday to $1.50 following Monday’s $1.58 and Friday’s $1.51.

  • Also as of yesterday, the stock returned a negative 47% so far this year and a loss of 78% in the past 52 weeks.  Short interest was 21 times NWBO's average daily trading and represented 24% of the shares available as of the latest quarterly filing.
  • Has the CEO been able to overcome the issues of her past tutelage?

 

Pluristem (PSTI) closed UP +$0.03 to $1.61 after yesterdays -$0.06. Slipping and sliding through March with values of $1.27 <starting the month> to luckily $1.61.

  • A slow path evolved, at March’s end at $1.61. PSTI starting April at $1.64 having seen February’s trading range of $0.84 through $1.30 a little better than January’s trading range of $1.13 through $0.88.
  • Management should be reading … Sun Tzu Wu’s, the “Art of War” … may I submit your theory of managing your share price to a slight test?

 

Vericel (VCEL) still the “Humpty-Dumpty” closed UP +$0.02 at $3.33 having fallen yesterday to $3.31 following Monday’s $3.72 and Friday’s $6.03.

  • Vericel (VCEL) data results revealed the trial failed to meet some secondary goals.
  • I have been steadfast in ranking VCEL a SELL – results are just TOO “foggy” and they have been operating on debt and borrowings unable to access the capital markets. 

 

 

Wednesday’s handicapping the sector pre-open indications – 29 hits and 13 miss: 

  • From the pre-open: “The risk posed by unknowns is to always expect the unexpected! I am not venturing any pre-open indications as I believe they are being hard to predict as a black swan event is in play which is a metaphor that describes an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight”.

 

 

Dosing the sector – what a day for the 43 Patients:

  • The sector opened: NEUTRAL with 20 decliners, 20 advancers and 3 flats;
  • The mid-day (12:30 pm: POSITIVE with 11 decliners, 32 advancers and 0 flat;
  • Closing bell: POSITIVE with 13 decliners, 29 advancers and 1 flat

 

 

Review my fear gauge or the CBOE Volatility Index (VIX):

  • Wednesday traded below 14.5;
  • Tuesday traded above 15;
  • Monday traded above 14;
  • Friday traded below 14
  • Thursday traded above 14;
  • Last, Wednesday traded near 13;

 

 

Riding the indexes and ETFs roller-coaster:

The iShares Biotechnology Stocks ETF (IBB) closed UP on Wednesday +16.07 or +5.96%

  • Tuesday -1.01 or -0.37%
  • Monday +2.34 or +0.87%
  • Friday +7.50 or +2.88%
  • Thursday +5.87 or +2.3%
  • Last, Wednesday -1.67 or -0.65%

The NASDAQ Biotechnology index (NBI) closed UP on Wednesday 167.97 or +5.95%

  • Tuesday -9.63 or -0.34%
  • Monday +25.11 or +0.90%
  • Friday +78.26 or +2.87%
  • Thursday +58.59 or +2.20%
  • Last, Wednesday -0.41 or -0.53%

The Russell 2000 (IWM) closed UP on Wednesday +1.23 or +1.13%

  • Tuesday -1.25 or -1.13%
  • Monday -0.93 or -0.84%
  • Friday +0.49 or +0.44%
  • Thursday +0.31 or +0.28%
  • Last, Wednesday +0.01 or +0.01%

The SPDR SD&P Biotech ETF (XBI) closed UP on Wednesday +3.78 or +7.02%

  • Tuesday -0.06 or -0.11%
  • Monday +0.70 or +1.32%
  • Friday +1.50 or +2.90%
  • Thursday +1.49 or +2.97%
  • Last, Wednesday -0.41 or -0.81%

 

 

Who was leading the declines – to of the bottom 5?

  • VistaGen (VSTA) closed down -$0.50 to $8.00;
  • uniQure (QURE) -$0.36 to $14.21;
  • ReNeuron (RENE.L) -$0.12 to $3.00;
  • International Stem Cell (ISCO) -$0.10 to $3.95;
  • Brainstorm (BCLI) closed down -$0.09 to $2.59

 

 

Who was UP – top 5:

  • bluebird bio (BLUE) closed up +$5.91 to $51.57;
  • Kite Pharma (KITE) +$3.69 to $53.72;
  • Spark therapeutics (ONCE) +$3.61 to $35.78;
  • Juno Therapeutics (JUNO) +$2.70 to $42.24;
  • Cellectis SA (CLLS) closed up +$1.84 to $30.99;

 

 

Volume movers:

  • ReNeuron (RENE.L) 2.939 M shares traded versus yesterday’s 1.454 M shares traded <3 month average = 1.514 M shares>;
  • Bluebird bio (BLUE) 1.765 M shares traded <3 month average = 1.452 shares>;
  • Juno Therapeutics (JUNO) 1.688 M shares traded <3 moth average =1.6 M shares>;
  • Intrexon (XON) 1.516 M shares traded versus yesterday’s 2 M share versus Monday’s 1.749 M <3 month average = 2 M shares>;
  • Kite Pharma (KITE) 1.244 M shares traded <3 month average =1.263 M shares>

 

 

Most active sector stocks + and -:

  • Caladrius Biosciences (CLBS) -6.83%
  • VistaGen (VSTA) -5.88%;
  • ImmunoCellular (NYSEMKT: IMUC) -4.62%;

Versus …

  • bluebird bio (BLUE) +12.94%
  • Spark therapeutics (ONCE) +11.22%;
  • Aduro Biotech (ADRO) +10.40%

 

 

Who was FLAT?

  • Athersys (ATHX) at $2.30;

 

 

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.