October 31, 2017 7:57am
… And some downside movement as
11/1 starts the full roll as AXGN FATE and JUNO report. Then comes ONCE, VCEL and AGTC on 11/7, ATHX on 11/8 and HSGX, BTX and ONVO on 11/9 with their conference calls
Investor’s focus will primarily be on each company’s cash burn, its pipeline updates and whether they need to jump through the offering window ensuring dilution and pricing depreciation
Some need to finance in FY17 to execute with runways in FY18
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Pre-open trading indications: 4 SELLs and 3 BUYs
For continued access to what one industry CEO calls the “bible” for smart investing in the RegMed, gene and cell therapy sector’
What’s the gauge of pricing expectation – monetization of information! How right does one have to be? You could and should be reading this review of the day’s share pricing activity.
Higher open expected
Dow futures are UP +0.16% (38 points) and NASDAQ futures are UP 0.31% (19.5 points)
U.S. stock index futures pointed to a higher open Tuesday as investors got ready to pore over another cluster of corporate earnings and economic data.
European stocks were slightly higher as investors digested a fresh batch of corporate earnings.
Asia markets closed mixed as investors in the region digested the release of China's official Purchasing Managers' Index and the Bank of Japan's rates decision.
Issues that will affect the trading day: As political uncertainty continues to mount, some strategists fear intensifying D.C. drama could further push out a tax reform package and roil markets. The critical question going forward is whether this is just a one-and-done, or whether it's just the beginning of a very long and perhaps a very, very tedious judicial process that could really weigh both on Washington and Wall Street as we go forward
Data docket: the employment cost index is set to come out at 8:30 a.m. ET, followed by the S&P CoreLogic Case-Shiller Index at 9 a.m. ET. At 9:45 a.m. ET, Chicago PMI is set to be released, with consumer confidence and housing vacancies both due out at 10 a.m. ET. The Dallas Fed's Texas Service Sector Outlook Survey will then come out at 10:30 a.m. ET.
The cell therapy sector closed NEGATIVE on Monday, POSITIVE on Friday, NEGATIVE on Thursday, Wednesday and last Tuesday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Monday closed NEGATIVE with 28 decliners, 13 advancers and 2 flats;
· Friday closed POSITIVE with 12 decliners, 29 advancers and 2 flats;
· Thursday closed NEGATIVE with 27 decliners, 10 advancers and 6 flat;
· Wednesday closed NEGATIVE with 30 decliners, 11 advancers and 2 flats;
· Last Tuesday closed NEGATIVE with 28 decliners, 10 advancers and 5 flats;
Henry’omics:
From Monday night’s closing bell post, “dives by lunch and closes to the downside as the IBB (+0.17%) and XBI (+0.30%) settle to the upside. Sentiment is weighing to the downside related to upcoming quarterly releases that will focus on spending and cash positions highlighting those who need capital market access.”
As I had stated, “Investor complacency will keep the sector as related to its market position off guard anticipating another tumble!”
A BIG quarterly results week as many of the sector’s “usual suspects” line-up to announce their depreciated past quarter and then … for a few to propose offerings to extend their runways for FY18.
You’ve made it to the office, turned on the monitor, having just gotten your coffee and it hits you - what could be today’s trades?
Watch list:
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.02% in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.13% in Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a NEGATIVE -0.04% in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.29% in Tuesday’s pre-open
Companies in my headlights:
Athersys (ATHX) closed down -$0.05 to $1.86 with 361.3 K shares traded. October started at $2.19, saw a low of $1.84 and a high of $2.45. 11/1 initiates their “earning’s” call and I expect they will announce a bigger loss due to the patent infringement settlement i.e. $500 K and stock payments and a need to finance – Maintaining SELL;
AxoGen (AXGN) closed up +$0.05 to $20.15 with 209.3 K shares traded after Friday’s flat at $20.10 with 302.8 K shares traded <3 month average = 216.6 K shares>. It’s getting rich just before their quarterly result’s announcement as October started at $19.10 with a low of $18.50. The aftermarket indication is a negative -$0.10 or -0.50% – Maintaining SELL;
BioLife Solutions (BLFS) closed down -$0.26 to $5.55 after Friday’s +$0.11 to $5.81with 107.7 K shares traded <3 month average =313.3 K shares>. BLFS received $1.9 million through the cash exercise of 393,070 warrants. BLFS and cloud-based cold chain management SaaS solutions, today announced both companies are providing their respective enhanced cold chain technologies for use in 8 active and pending clinical trials conducted by the Diabetes Center and Department of Surgery at the University of California, San Francisco – Maintaining BUY;
bluebird bio (BLUE) closed up again +$0.80 to $141.60 with 434 K shares traded after Friday’s +$4.20 to $140.80 with 898.7 K shares traded <3 month average = 826.8 K shares>. Last week started out at $140.35 which was down -$2.20 from the previous Friday, while October started out at $125.45 which was down -$1.19 from September’s month end with the month’s high of $143.30 – The aftermarket indication is a negative -$1.80 or -1.27% – Maintaining SELL;
Cellectis SA (CLLS) closed up +$0.76 to $23.01 with 219.5 K shares traded after Friday’s +$1.17 to $33.25,Thursday’s -$0.22 to $32.08, Wednesday’s +$0.56 to $32.50 with 447.1 K shares traded and last Tuesday’s +$0.97 to $31.94 with 354.6 K shares traded <3 month average = 216.6 K shares>. The aftermarket indication is a negative -$0.66 or -1.98% – Maintaining SELL;
Stemline (STML) closed down -$0.25 to $10.55 with 164.4 K shares traded. STML announced today that its pivotal P2 trial of SL-401 in blastic plasmacytoid dendritic cell neoplasm (BPDCN) has met its primary endpoint. Based on feedback from the U.S. FDA, STML remains on track to begin submission of its Biologics License Application (BLA) in the 4Q17-1Q18 timeframe. SL-401 has been granted Breakthrough Therapy Designation (BTD) by the FDA for the treatment of BPDCN, and Orphan Drug Designation (ODD) by the FDA and EU for the treatment of patients with BPDCN and acute myeloid leukemia (AML) - BUY;
Verastem (VSTM) closed down -$0.10 to $3.66 with 190.3 K shares traded <3 month average = 1.2 M shares> after Friday’s $3.76 and Thursday’s $3.55. News is always a stimulator as VSTM announced that a meeting was held with the U.S. FDA regarding the regulatory path for duvelisib, the Company’s first-in-class, oral, monotherapy, dual inhibitor of phosphoinositide 3-kinase (PI3K)-delta and PI3K-gamma, which is being developed for the treatment of patients with lymphoid malignancies. Based on the meeting with, and written feedback from the FDA, Verastem intends to submit a New Drug Application (NDA) requesting the full approval of duvelisib for the treatment of patients with relapsed or refractory chronic lymphocytic leukemia (CLL)/small lymphocytic lymphoma (SLL), and accelerated approval for the treatment of patients with relapsed or refractory follicular lymphoma (FL). The Company expects to submit the duvelisib NDA during the first quarter of 2018 – BUY;
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.
