RegMed Investors’ (RMi) mid-day analysis, the sector gets a message nailed to the door …

January 11, 2017 5:34pm

During a cheerful week at the J.P. Morgan Healthcare Conference where companies kiss the hems of Pharma, investors just got … a severe beat-down as …

During a press conference Wednesday morning, president-elect Trump said the government has to create new bidding procedures for the pharmaceutical industry "because they're getting away with murder."

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

Pre-open indication’s tally:  5 hits (AGTC, BLFS, MESO, CUR and PSTI) and 1 miss (HSGX)

Out and about: MY idea of the 8 dogs of 2017…

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Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

U.S. equities closed higher in choppy trade on Wednesday, shrugging off a sharp decline in health care stocks following remarks made by President-elect Donald Trump.

The NASDAQ closed UP +11.83 or +0.21% to 5,563.65 and the DOW closed UP +98.75 or +0.50% to 19,954.28.

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 16/26 and 1 flat;                       
• The mid-day continued negative with an A/DL of 2/37 and 4 flats;
• The closing bell stayed negative with A/DL of 5/34 and 4 flats;

Shares of the iShares Nasdaq Biotechnology ETF (IBB) fell almost 2.99% and the SPDR Biotech ETF (XBI) dropped almost 2.26%. Meanwhile, the iShares U.S. Pharmaceuticals ETF (IHE) dropped almost 2.1% and the SPDR S&P Pharmaceuticals ETF (XPH) fell 2.7%. The health care SPDR (XLV) declined around 1.01%.

Henry’omics:

Recounting the mid-day’s update, “stocks stumble in minutes”

• “We’re the largest buyer of drugs in the world, but we don’t bid properly, and we’ll save billions over time and we’ll do that with a lot of other industries,” Trump said. He added that the industry was “getting away with murder.” … Donald Trump, the president-elect.

The NASDAQ erased gains to trade slightly lower.

• The comments sparked an immediate sell-off in the stem, cell, gene and regenerative therapy and biotech sector and the surrounding market.

From this morning’s investor’s letter, “Share pricing consistency is more than a few words … It is a property of holding together and retaining its value. However, advance/decline lines of 2 down (Thursday and Friday) followed by 2 ups (Monday and Tuesday) usually set the daily tone of the sector

Following the president-elect statement which caused the sell-off “I think a lot of industries are going to be coming back. We have to get our drug industry coming back. Our drug industry has been disastrous. They’re leaving left and right. They supply our drugs, but they don't make them here. To a large extent and the other thing we have to do is create a new bidding procedures for the drug industry because they're getting away with murder.”

• Followed by, “Pharma has a lot of lobbies, a lot of lobbyists and a lot of power. And there's very little bidding on drugs. We’re the largest buyer of drugs in the world, and yet we don't bid properly. And were going to start bidding and were going to save billions of dollars over a period of time.”

I am NOT ready to put out a forecast as Q4/16 results have NOT been released! There will be – in my view … first a few preambles of the calculated projections.

Indexes, the ebb and flow:

• The iShares Russell 2000 (IWM) indicated a negative -0.06% in the pre- open and closed UP +0.18%.
• The iShares NASDAQ Biotechnology (IBB) indicated a positive +0.14% in the pre-open and closed DOWN -3%

Pre-open indication’s tally:  5 hits (AGTC, BLFS, MESO, CUR and PSTI) and 1 miss (HSGX)

• Applied Genetic Technologies (AGTC) closed DOWN -$0.55 – hit;
• BioLife Solutions (BLFS) closed DOWN -$0.07 – hit;
• Histogenics (HSGX) closed DOWN -$0.02 – miss;
• Mesoblast (MESO) closed DOWN -$0.11 – hit;
• Neuralstem (CUR) closed DOWN -$1.41 – hit;
• Pluristem (PSTI) closed DOWN -$0.02 – hit;

MY idea of the 8 dogs of 2017:

·         BioLife Solutions (BLFS)

·         Brainstorm Cell Therapeutics (BCLI)

·         Capricor (CAPR)

·         Cytori (CYTX)

·         Fibrocell (FCSC)

·         International Stem Cell (ISCO)

·         Northwest Bio (NWBO) and

·         Opexa (OPXA)

Today’s 5 only $ gainers included:

• AxoGen (AXGN) +$0.05;
• Microbot (formerly STEM) +$0.05;
• Cellectis SA (CLLS) +$0.05 after Tuesday’s -$0.37;
• International Stem cell (ISCO) +$0.03;
• Caladrius Biosciences (CLBS) +$0.01

Today’s 5 largest $ losers of the session were:

• Spark Therapeutics (ONCE) -$5.99 after Tuesday’s -$0.39 after Monday’s +$4.00 after Friday’s -$0.19 after Thursday’s -$0.81 after Wednesday’s +$5.81 after last Tuesday’s +$3.78;
• bluebird bio (BLUE) -$3.20 after Tuesday’s -$0.55 after Monday’s+$0.60 after Friday’s +$0.70 after Thursday’s -$0.15 after last Wednesday’s+$5.80;
• Kite Pharma (KITE) -$2.69 after Tuesday’s -$0.25 after Monday’s+$0.75 after Friday’s +$1.56 after Thursday’s +$0.72 after Wednesday’s +$3.03 after last Tuesday’s +$1.11;
• ImmunoCellular (NYSEMKT: IMUC) -$1.46 after Tuesday’s +$2.02;
• Neuralstem (CUR) -$1.41 after Tuesday’s +$2.25 after a 1 for 13 reverse split after Monday’s -$0.19;

Flat:

• Biostage (BSTG) at $0.85;
• Brainstorm (BCLI) at $2.64;
• ReNeuron (RENE.L) at $2.625;                                                   
• Sangamo (SGMO) at $3.65;

The downside trend reflects a pricing trend range of:

• Wednesday’s decliners ranged from -0.38% <CAPR> to -34.76% <IMUC> in 34 equities;
• Tuesday’s decliners ranged from -0.28% <BTX> to -6.47% <CAPR> in 14 equities;
• Monday’s decliners ranged from -0.04% <XON> to—4.81% <CUR> in 10 equities;
• Friday’s decliners ranged from -0.12% <MDXG> to-4.82% <CLLS> in 23 equities;
• Thursday’s decliners ranged from -0.22% <BLUE> to -8.96% <ADVM> in 25 equities;
• Last Wednesday’s decliners ranged from -0.19% <MESO> to -4.09% <VTGN> in 6 equities;

The upside shows a pricing trend range of:

• Wednesday’s gainers ranged from +0.26% <CLBS> to +4.07% <MBOT> in 5 equities;
• Tuesday’s gainers ranged from +0.41% <OSIR> to +92.82% <IMUC> in 25 equities;
• Monday’s gainers ranged from +0.21% <BLCM> to +15.71% <NWBO> in 29 equities;
• Friday’s gainers ranged from +0.40% <BCLI> to +13.66% <STML> in 18 equities;
• Thursday’s gainers ranged from +0.17% <QURE> to +21.99% <FCSC> in 15 equities;
• Last Wednesday’s gainers ranged from +0.56% <AXGN> to +13.56 <ADVM> in 34 equities;

The week’s initiation:

• Wednesday’s 5 gainers followed Tuesday’s 25, Monday’s 29, Friday’s 18, Thursday’s 15 and last Wednesday’s 34
• Wednesday’s 34 decliners followed Tuesday’s 14, Monday’s 10, Friday’s 23, Thursday’s 25 and last Wednesday’s 6

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

·         Wednesday traded near 11.6;

·         Tuesday traded near 11.7;

·         Monday traded near 11.6;

·         Friday traded near 11.3;

·         Thursday traded near 11.7;

·         Last Wednesday traded near 11.9;

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.