June 18, 2024 4:28pm

As cell and gene therapy sector flip-flops again in the downside gutter

While traders weigh retail sales data; where are the catalyst to keep cell and gene therapy sector share pricing appreciating other than action by “uncle algo and his electronic trading dwarfs”?

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

Never leave an investor uninformed! 

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Tuesday: The Dow closed UP +56.89 points or +0.15%, the S&P closed UP +13.80 points or +0.25% while the Nasdaq closed UP +5.21 points or +0.03%

 

RegMed Investors’ (RMi) pre-open post: “who went down, which goes up. Remember, the trend is your friend until it ends” …  https://www.regmedinvestors.com/articles/13504

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes were positive while the Nasdaq closed barely up as the S&P and Dow were also positive as the cell and gene therapy sector crashed.

Boston Fed President Susan Collins said recent inflation data has been encouraging, though not enough to move the needle yet on monetary policy. <CNBC>

Economic Data Docket: Retail sales rose 0.1% in May, below the 0.2% Dow Jones estimate; excluding autos, sales declined 0.1%. Moderating gas prices helped hurt receipts at gas stations, which reported a 2.2% monthly decline.

 

Metrics (IBB, XBI & VVIX) and Advance/Decline (A/D) Line:

Tuesday’s advance/decline line at the open was negative with 7 incliner, 24 decliners and 4 flats; ending with a negative close of 6 incliners, 26 decliners and 3 flats

  • the IBB was down -1.06% and the XBI was down -0.99%
  • the VIX down -0.49 point or -3.84% at 12.26

Monday’s advance/decline line at the open was negative with 7 incliner, 26 decliners and 3 flats; ending with a negative close of 8 incliners, 23 decliners and 4 flats

  • the IBB was down -0.74% and the XBI was down -1.26%
  • the VIX was up +0.09 point or +0.71% at 12.75

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

  • June: 4 positive and 8 negative closes

 

Tuesday’s Closing Down (10 of 26):

  • Alnylam Pharmaceuticals (ALNY -$3.44 after Monday’s -$3.09
  • Ultragenyx Pharmaceuticals (RARE -$2.38 after Monday’s +$0.75)
  • Agenus (AGEN -$1.31 after Monday’s -$1.16),
  • CRISPR Therapeutics (CRSP -$1.22 after Monday’s -$1.78),
  • Beam Therapeutics (BEAM -$0.86 after Monday’s -$0.84),
  • Adverum Biotechnologies (ADVM -$0.73),
  • Solid Biosciences (SLDB -$0.67 after Monday’s -$0.43),
  • Sage Therapeutics (SAGE -$0.52 after Monday’s -$0.73),
  • Intellia Therapeutics (NTLA -$0.37 after Monday’s +$0.02),
  • BioLife Solutions (BLFS -$0.29 after Monday’s +$0.05),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX) – under $1.00

Tuesday’s Closing Up (6 of 6):

  • Blueprint Medicine (BPMC +$2.84 after Monday’s -$1.68)
  • Vericel (VCEL +$1.66 after Monday’s -$0.58
  • Regenxbio (RGNX +$0.57 after Monday’s -$0.77),
  • Mesoblast (MESO +$0.25),
  • MiMedx (MDXG +$0.04 after Monday’s +$0.04),
  • Sangamo Therapeutics (SGMO +$0.0076),

 

The BOTTOM LINE: Repeating the refrain from yesterday … words still have meaning!

“As the markets look at and to June, consolidate around fair value, the sector isn’t in the all-clear zone, noting the significant lack of market breadth and weakness under the surface.

The cell and gene therapy sector lagged in May and is now trading at a 5% and as high as 10% discount as opposed to a premium earlier this year. Within “our” universe, we are seeing a number of stocks that rarely have traded at much of a discount,

In this period of ups, downs and uncertainty having experienced performance in the sector these months; I think investors need to SELL the HIGHS and BUY the LOWS … contrarian investment opportunities, especially in this sector that has underperformed, usually unloved—and most importantly—undervalued.

These MOVE plays are often “news or story stocks,” which typically revolve around catalysts that may or may NOT have short and near-term risk; but most of all require a greater amount of analysis.”

 

3rd week of June, 1st session … the cell and gene therapy sector experienced 2 negative closes …

  • 2nd week of June … negative closes on Friday and Thursday after Wednesday ascended positively as Tuesday drifted lower, retreating from Monday’s highs.
  • 1stweek of June: Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

 

Government data released showed that retail sales increased just 0.1%, missing economist expectations.

  • April's numbers were revised to show a decline. It could be a sign of more consumer strain amid high interest rates and persistently stubborn inflation. <Yahoo Finance>

 

How To Invest in June?? … <Morningstar>

While the economic outlook remains uncertain, there are reasons for investors to be optimistic in June and beyond.

  • Since 1950, the S&P 500 has averaged a 1.3% gain in June during U.S. election years. Summer election-year stock market strength has historically continued through August before markets tend to cool in September and October leading up to Election Day.
  • The S&P 500 has also historically performed very well in the second half of election years under a first-term president, such as current President Joe Biden.

Investors concerned about the potential for a U.S. economic slowdown or election-related volatility can take a more defensive approach to the market and increase their financial flexibility by dialing back exposure to stocks and increasing their cash holdings.

 

The top three (3) performing in the session:  

  • Tuesday: Blueprint Medicine (BPMC), Vericel (VCEL) and Regenxbio (RGNX)
  • Monday: Ultragenyx Pharmaceuticals (RARE), Generation BIO (GBIO) and Ionis Pharmaceuticals (IONS)

The worst three (3) in the session:   

  • Tuesday: Alnylam Pharmaceuticals (ALNY), Ultragenyx Pharmaceuticals (RARE) and Agenus (AGEN)
  • Monday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Blueprint Medicine (BPMC)

Welcome to my world of defining the “grey’ in our universe!

  • Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”

 

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 it’s 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.