November 7, 2022 4:50pm

Biostage (OTCQB: BSTG) Chronicles:  back to its usual “tricks” pumping the volume and share pricing +$0.76 with 1,880 shares traded – I can’t make this up!

Indication Results: 6 Hits, 0 Miss and 1Pump/promote <Biostage (OTCQB: BSTG)>

News: Beam Therapeutics (BEAM) retreats clinical plans for 2nd sickle cell gene therapy trial; BEAM wants to give itself more time to work on an improved conditioning regimen with lower toxicity.

Earnings: Verve Therapeutics (VERV) had a Q3 net loss of -$45.2 million or -$0.79 per share with a cash position of $556.7 million and a 2H/25 runway. Beam Therapeutics (BEAM) had a Q3 net loss of -$109.6 million or -$1.56 per share with a cash position of $1.1 billion and a 2025 runway. bluebird bio (BLUE) had a Q3 net loss of -$76.52 million or -$0.94 per share with a cash position of $141 million (with $45 million restricted cash and $54 ATM utilization) and a Q2/23 runway.

It’s an honor to be considered the “canary in the (sector) coal mine”! 

It’s more than opinion, the facts and truth need to be recognized! Why do I keep writing this blog/newsletter; to inform investors, what others won’t say or write

If I have learned one thing as a former research analyst in a venture and public fund now a journalist; it is that your life and your bank account are largely tied to your knowledge of price movements and questioning pricing targets.

 

The Dow closed UP +423.78 points (+1.31%), the S&P closed UP +36.25 points (+0.96%) while the Nasdaq closed UP +89,27points (+0.85%)

 

Henry’omics:

Indexes rose Monday with senate and congressional midterm elections and key inflation data on deck.

Tuesday’s midterm election will determine which party will control Congress, and affect the direction of future spending.

Volume fell on the Nasdaq versus Friday.

Economic Data Docket: Thursday’s consumer price index report will give further insight into how far the Federal Reserve needs to go to bring down inflation.

  • The most-closely tracked inflation number is forecast to rise 0.7%, higher than September's 0.4%, for an annualized rate of 8%. Core CPI, excluding food and energy, is expected to rise 0.5%, slightly less than September's 0.6%. This would yield an annualized rate of 6.6%.

 

Monday’s … RegMed Investor’s (RMi) Pre-Open: “the cell and gene therapy sector is stuck in earnings LPS (loss-per-share) season. What’s appreciable versus doubtful? This is not a good environment for buying into the sector. Investors should be looking to reduce exposure, by cutting “some” losses on various positions. AGTC already bit the dust, AVRO and VSTM are suffering from de-listing – up-lifts are a bitch with the possibility of reverse stock moves!” … https://www.regmedinvestors.com/articles/12686

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened

  • Monday’s advance/decline line opened negative at 13 up/ 21 down and 1 flat, stayed with 12 up/ 23 down and 0 flat at the mid-day, ending with a negative close of 10/24 and 1 flat.

 

Pre-open Indications: 6 Hit < Intellia Therapeutics (NTLA -$2.41), Sage Therapeutics (SAGE -$0.90), Verve Therapeutics (VERV -$9.54), BioLife Solutions (BLFS +$0.79), Fate Therapeutics (FATE -$0.16), Ionis Pharmaceuticals (IONS +$0.06)> 0 Miss and 1Pump/promote <Biostage (OTCQB: BSTG +$0.76)>

 

Key Metrics:

  • Monday - Sector volume was LOW with 2 of the 10-upside having higher than the 3-month average volume with LOW volume of 5 of 24-downside having higher than the 3-month average volume

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Monday, the IBB was up +0.58% and the XBI was down -1.05%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -0.12 points or -0.49% at 24.43

 

Jumping with share pricing momentum (10 of 10):

  • Chinook Therapeutics (KDNY +$0.82 after Friday’s +$0.09),
  • BioLife Solutions (BLFS +$0.79 after Friday’s -$5.93),
  • Biostage (BSTG +$0.76 after Friday’s +$0.01),
  • bluebird bio (BLUE +$0.68),
  • Solid Biosciences (SLDB +$0.13),
  • Regenxbio (RGNX +$0.11),
  • MiMedx (MDXG +$0.10 after Friday’s +$0.05),
  • Ionis Pharmaceuticals (IONS +$0.06 after Friday’s -$2.94),
  • Avrobio (AVRO +$0.0079),
  • Verastem (VSTM +$0.0010 and Friday’s -$0.0088),

Flat (1):

  • Homology Medicine (FIXX)

Closing down (10 of 24):

  • Verve Therapeutics (VERV -$9.54 after Friday’s -$1.03),
  • Beam Therapeutics (BEAM -$4.89 after Friday’s -$1.21),
  • Alnylam Pharmaceuticals (ALNY -$3.41 after Friday’s -$7.38),
  • Intellia Therapeutics (NTLA -$2.41 after Friday’s -$0.67),
  • Prime Therapeutics (PRME -$2.07 after Friday’s +$1.58),
  • CRISP Therapeutics (CRSP -$1.48 after Friday’s -$2.06),
  • Vericel (VCEL -$0.90 after Friday’s -$1.56),
  • Sage Therapeutics (SAGE -$0.90 after Friday’s -$1.85),
  • Editas Medicine (EDIT -$0.46),
  • uniQure NV (QURE -$0.38),

 

Q4 – November

  • Monday closed negative with 10 incliner, 24 decliners and 1 flat

 

The BOTTOM LINE: Short-term momentum is driving the sector towards the midterms,

 I try to keep it simple … and short!

I keep repeating a “mantra” for effect, “Kenny Storch at BTIG, states there are 226 public biotech companies trading below cash currently. With 1 out of 5 in the Nasdaq Biotech Index trading below cash.” <I have also been stating the same theme!>

We will be seeing what October brings – Q3 earnings LPS (loss-per-share) season and a whole lot of economic indicators.

Q4 is HERE and we are back into Q3 earnings season which could be a minefield:

·         AxoGen (AXGN) and Sage Therapeutics (SAGE) on 11/8,

·         Ionis Pharmaceuticals (IONS) and Vericel (VCEL) on Wednesday, 11/9

·         Brainstorm Cell Therapeutics (BCLI) on Monday, 11/14

If you have gains, you might want to lock-in profit if any … before earnings season begins!

DISPOSE Avrobio (AVRO) who experiences news (completion of dosing) as the stock drops following a de-listing notice while the management DID NOTHING to AVOID this dilemma while president, CEO and director Geoff Mackay carries home a HUGE salary of $754.39 K per year?

·         AVRO closed barely up +$0.0079 after Friday’s -$0.02 to $0.65 which STILL does NOT get close to the $1.00 to continue its Nasdaq listing after a delisting notice.

·         AVRO’s 507h session of under $1.00,

·         Will AVRO have to “commission" a stock reverse to address delisting?

·         Or, will they “pull” an AGTC and get acquired by a shell?

Isn’t this Verastem Oncology’s (VSTM is up +$0.0010 to $0.39 after Friday’s -$0.0088); its 32th session of being UNDER $1.00 heading for de-listing under Nasdaq.

As I continually question, “The real question that should be asked is how many companies are at the end of sentiments …  leash?

I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.

 

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.

Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.