July 18, 2016 4:59pm
… Brainstorm’s (BCLI) pricing dissolves (-$0.28 or -9.36%) on questionable data
Safety was not the only concern
… BCLI also failed to demonstrate statistical significance on key secondary efficacy measures regarding disease progression
My pre-open indications – 3 hit (BLFS, KITE and JUNO) and 2 miss (ADRO and XON)
Do you care what happened today, you should … because it has implications to Tuesday's sector activity?
Where has today’s market gone – subscribe and find out.
There are two things that investors need - interpretation of news and translation of market metrics concerning the stem, cell, gene and regenerative therapy sector to substantiate share pricing.
U.S. stocks closed at record highs. The Dow ended +0.13% higher, the S&P 500 also ended up about a quarter of a percent at a record high while the Nasdaq traded up more than half a percent.
The NASDAQ closed UP +26.19 or +0.52% to 5,055.78 and the DOW closed UP +16.50 or +0.09% to 18,533.05.
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 negative with an A/DL of 19/21 and 3 flats;
- The mid-day flipped positive with an A/DL of 28/14 and 1 flat;
- The closing bell was positive with A/DL of 24/18 and 1 flat;
Henry’omics:
The SCGT&RT sector opened negative, slipped positive at the mid-day and closed positive.
- The iShares Nasdaq Biotechnology (IBB) closed UP +0.35% along with the iShares Russell 2000 ETF (IWM) also being UP +0.17% but we are in the summer doldrums.
There are always questions on P2 data <as relates to BCLI> and it seems to relate to a melt down and a total lack of believability and it is NOT the first time.
- I am reminded by the Abbott and Costello’s baseball routine …
Again, “our” universe has been tracking more to the downside than the up!
- While mostly smaller-penny, nickel, dime and dollar moves have not always been aligned; the sector needs to maintain an appropriate perspective on data results.
Despite all the common fears and expectations to the contrary, investors need to view the "realities" of stem and cell therapy as not supportive of further highs in this market.
- More reality is coming – Q2 results and spending on development platforms that aren’t providing support for expectations.
Where that leaves me right now is very cautious …
Review my fear gauge or the CBOE Volatility Index (VIX):
- Monday traded near 12.4;
- Friday closed near 13;
- Thursday closed below 13;
- Wednesday traded near 13.4;
- Tuesday closed near 13.6;
- Last, Monday traded near 13.5;
Today’s Bottom Line:
My guess is that the lack of guidance will give investors a sense that we're not quite through the worst.
My pre-open indications – 3 hits and 2 miss:
- Aduro Biotech (ADRO) closed UP +$0.17 – miss;
- BioLife Solutions (BLFS) closed UP +$0.08 – hit;
- Intrexon (XON) closed UP +$0.90 – miss;
- Juno Therapeutics (JUNO) closed DOWN -$0.70 – hit;
- Kite Pharma (KITE) closed DOWN -$0.02 – hit;
Largest decliners:
- Brainstorm (BCLI) -9.36% after Friday’s -15.01% after Thursday’s +32.84%;
- Opexa (OPXA) -5.94%;
- International Stem cell (ISCO) -5.41%;
- Fate Therapeutics (FATE) -3.91%;
- ImmunoCellular (NYSEMKT: IMUC) -3.81%
Advancers:
- Fibrocell (FCSC) +7.96%;
- VistaGen (VSTN) +3.95%;
- ReNeuron (RENE.L) +4.35%;
- BioLife Solutions (BLFS) +4.04%;
- Intrexon (XON) +3.67%
Flat:
- Adverum (ADVM) at $3.19;
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.
