June 14, 2016 5:13pm

 

MESO shares drop -40.59% as Teva walks, returning full rights  

… The aftermath, markets discount stem cell therapy companies

 

Pre-market indications – 1 hit and 3 miss

 

Do you care what happened today, you should … because it has implications to Wednesday's sector activity?  

 

 

There are two things that investors need - interpretation of news and translation of related market metrics concerning the stem, cell and gene therapy and regenerative medicine sector to substantiate share pricing.

 

 

U.S. stocks closed lower Tuesday, amid declines in oil prices, as investors looked ahead to the conclusion of the Fed meeting and the U.K. vote on whether to leave the European Union. The major averages ended well off session lows.

The NASDAQ closed DOWN -4.89 or -0.10% to 4,843.55 and the DOW closed DOWN -57.66 or -0.33% to 17,674.82.

 

 

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

  • The open was positive with an A/DL of 24/15 and 4 flats;

 

  • The mid-day turned negative  with an A/DL of 7/35 and 1 flat;

 

  • The closing bell stayed negative  with A/DL of 4/36 and 3 flat;

 

 

Henry’omics:

The SCGT&RT sector opened positive was negative at the mid-day and closed negative.

  • The sixth <6th> down day in a row …

June is likely to be a more volatile month than usual. The VIX fear index is above 20 and all indexes <IBB, IWM, XBI, XLV and the NBI> are in the red.

  • Among the stocks showing more volatility than usual are ReNeuron (RENE.L), uniQure (QURE), Intrexon (XON), Juno Therapeutics (JUNO), Spark Therapeutics (ONCE) and who else - Mesoblast (MESO).

 

 

Pre-market indications – 1 hit and 3 miss:

  • Applied Genetic Technologies (AGTC) closed DOWN -$0.24 – miss;
  • Biostage (BSTG) closed DOWN -$0.07 – miss;
  • Spark Therapeutics (ONCE) closed DOWN -$5.77 – hit;
  • uniQure (QURE) closed DOWN -$0.59 – miss;

 

 

Out and about:

Mesoblast (MESO) shook the faith of the sector … see my review:

  • Mesoblast Limited (MESO) the trading halt is over, the damage accessed - aftermath …
  • MESO dumped -40.59% after Teva Pharmaceuticals (TEVA) withdrew its support of the P3 chronic heart failure stem cell therapy platform MPC-150-IM.

 

 

Today’s Bottom Line:

Investors are losing faith … the perception of stem cell therapies are at risk, triggering speculation about research platforms and programs as well as the ability to partner and finance!

 

 

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

  • Tuesday traded near 21.1 after briefly topping 22 for the first time since 2/24;
  • Monday traded above 21 – the highest since February 25;
  • Friday traded at 16;
  • Thursday traded near 14.4
  • Wednesday traded 14;
  • Last, Tuesday traded near 13.7;

 

 

Most active sector stocks + and -:

  • Mesoblast (MESO) -40.59%;
  • Fibrocell (FCSC) -12.95%;
  • Spark Therapeutics (ONVE) -10.98%;
  • Adverum (ADVM) -7.03%;
  • Regenxbio (RGNX) -6.91%

versus:

  • Organovo (ONVO) +4.84%;
  • Histogenics (HSGX) +4.44%;
  • Capricor (CAPR) +3.81%;
  • BioLife Solutions (BLFS) +0.63%;

 

 

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.