August 19, 2024 4:35pm

As cell and gene therapy sector Q2/24 earnings season ends, R&D and SG&A spending is higher while net losses drifted down, while share pricing bounces positive

Volatility will elevate in Q3/24, part of 2H/24

I say today what others won't, so you can do what others can't by sticking to the FACTS!

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.”

 

Monday: The Dow closed UP +236.77 points or +0.58%, the S&P closed UP +54 points or +0.97% while the Nasdaq closed UP +245.05 points or +1.39%

  • Indexes traded higher Monday as markets look toward a possible signal this week from Federal Reserve Chairman Jerome Powell about interest rates.

Monday’s advance/decline line at the open was positive with 25 incliners, 7 declined and 3 flats; ending with a negative close of 27 incliner, 6 decliners and 2 flats

  • the IBB was up +2.04% and the XBI was up +3.15%
  • the VIX was down -0.17 point or -1.15% at 14.63

Economic Data Docket: The economic and market spotlight this week will shift to Jackson Hole, Wyo., for the Kansas City Fed's annual economic symposium, which runs Thursday through Saturday.

 

As compared to …

Friday: The Dow closed UP +96.70 points or +0.24%, the S&P closed UP +11.03 points or +0.20% while the Nasdaq closed UP +37.22 points or +0.21%

  • Indexes rose on Friday as investors closed out the best week of 2024, part of a market comeback from a violent rout to begin August.
  • For the week, the Dow advanced 2.9%, the S&P 500 added nearly 3.9%, its best week since November 2023 and the Nasdaq gained 5.2%.

Friday’s advance/decline line at the open was negative with 12 incliners, 20 declined and 3 flats; ending with a neutral close of 15 incliner, 15 decliners and 5 flats

  • the IBB was DOWN -0.07% and the XBI was UP +0.06%
  • the VIX was down -0.43 point or -2.82% at 14.80

 

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 advanced on Monday, coming off a winning week, the latest turn amid a volatile stretch for equities.

August had a turbulent start after disappointing data fueled recession fears and bolstered concerns that the Federal Reserve was behind the curve on lowering interest rates. Those worries sparked a global sell-off, pushing the S&P 500 on Aug. 5 to record its worst day since 2022. <CNBC>

“The economy is slowing and there will likely be a mix of conflicting economic data points over the coming months, which is set to continue this recessionary debate.” < Greg Marcus, managing director of UBS Private Wealth Management>

 

All time low:

  • bluebird bio (BLUE) at $0.67

 

Q2/24 Earnings:

RegMed Investors (RMi) - Q2/24 Cell and Gene Therapy Earnings Scorecard Results

… https://www.regmedinvestors.com/articles/11628

RegMed Investors (RMI) Research Note: Harvard Apparatus RT (OTCQB: HRGN) Chronicles: Reports Q2/24 results … https://www.regmedinvestors.com/articles/13580

  • After a Research Note this a.m., OTCQB: HRGN closed down -$0.05 with 50 shares traded to $2.25

 

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

Q3/24

  • August: 1 neutral, 5 positive and 7 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Monday’s Closing Down (6 of 6):

  • Agenus (AGEN -$0.19 after Friday’s +$0.11),
  • Harvard Apparatus RT (OTCQB: HRGN -$0.05 after Friday’s $0.00),
  • Lenz Therapeutics (LENZ -$0.05 after Friday’s +$0.16
  • uniQure NV (QURE -$0.04 after Friday’s -$0.12),
  • Sangamo Therapeutics (SGMO -$0.018),
  • bluebird bio (BLUE -$0.0172)

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • Homology Medicine (FIXX)

Monday’s Closing Up (10 of 27):

  • Alnylam Pharmaceuticals (ALNY +$6.24 after Friday’s +$5.54),
  • Blueprint Medicine (BPMC -$2.21 after Friday’s -$2.030,
  • CRISPR Therapeutics (CRSP +$1.98 after Friday’s -$1.00),
  • Ultragenyx Pharmaceuticals (RARE -$ after Friday’s +$1.32),
  • Ionis Pharmaceuticals (IONS +$1.18 after Friday’s -$0.21),
  • Vericel (VCEL +$1.04 after Friday’s +$0.14),
  • Intellia Therapeutics (NTLA +$0.81 after Friday’s -$0.24),
  • Ultragenyx Pharmaceuticals (RARE +$0.73)
  • Sage Therapeutics (SAGE +$0.60 after Friday’s -$0.16),
  • BioLife Solutions (BLFS +$0.57 after Friday’s +$0.09)

 

The BOTTOM LINE: Cell and gene therapy stocks popped Monday after last week's gains, pain and a neutral share pricing as a measure of calm returns – hope springs eternal but, not a technical factor.

It was a fait accompli after a mixed week that ended neutral on Friday.

investors will also keep a watchful eye on the Democratic National Convention, which kicks off on Monday and could bring more insight into what to expect from presidential nominee Kamala Harris.

Summer has proven itself to be a wild week for markets, with highs, lows, and neutral closes.

  • As “uncle algo and his electronic dwarfs” wobbled pricing neutral, pumped 2 sessions and dumped2 sessions of the cell and gene therapy sector’s share pricing!

After a mixed week … Small caps are shining today, Monday, with the Russell 2000 up 1%.

  • Last week slowed with the sector’s Friday neutral close after Thursday’s positive close following Wednesday’s negative close, Tuesday’s positive close and Monday’s negative close.
  • Following the previous week’s Friday’s decline and the previous Thursday’s incline after drooping on Wednesday following Tuesday’s pop and Monday’s decline in a new week …

 

The up/downs in sessions could be a preview of the rest of the month, quarter and year …

  • Economic concerns, geopolitical conflict and the looming November elections could keep investors on edge in the coming months.

August is historically a rocky month for the stock market due to lighter trader volumes.

  • As Q2 earnings numbers sweep … hold tight more earnings numbers on the way, we can NOT battle the downslide!

 

Reiterating, “There’s more room for “tactical downside in the weeks to come as we enter the gauntlet of the weakest two months and only consecutive losing months for equities, with markets at all-time highs.”

 

Q3 and August to date:

  • (8/19) Monday ended with a positive close of 27 incliner, 6 decliners and 2 flats
  • Friday ended neutral with 15 incliners, 15 decliners and 5 flats
  • Thursday ended with a positive close of 23 incliner, 9 decliners and 3 flats
  • Wednesday ended with a negative close of 6 incliner, 29 decliners and 3 flats
  • Tuesday ended with a positive close of 22 incliner, 10 decliners and 3 flats
  • (8/12) Monday ended with a negative close of 13 incliner, 19 decliners and 3 flats
  • Friday ended with a negative close of 9 incliner, 24 decliners and 2 flats
  • Thursday ended with a positive close of 26 incliner, 6 decliners and 3 flats
  • Wednesday ended with a negative close of 2 incliner, 31 decliners and 2 flats
  • Tuesday ended with a positive close of 23 incliner, 9 decliners and 3 flats
  • (8/5) Monday ended with a negative close of 1 incliner, 31 decliners and 3 flats
  • Friday ended with a negative close of 5 incliners, 28 decliners and 2 flats
  • (8/1) Thursday ended with a negative close of 4 incliners, 29 decliners and 2 flats

 

Electronic trading pops and flops the cell and gene therapy sector

  • There is past evidence of a slowdown coming (it’s the contrarian in me) and it's going to become even more thin as we go forward into Q2 earnings season

 

The top three (3) performing in the session: 

  • Monday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and CRISPR Therapeutics (CRSP)
  • Last Friday: Alnylam Pharmaceuticals (ALNY), Ultragenyx Pharmaceuticals (RARE) and AxoGen (AXGN)

The worst three (3) in the session: 

  • Monday: Agenus (AGEN), Harvard Apparatus RT (OTCQB: HRGN) and Lenz Therapeutics (LENZ)
  • Last Friday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM)

 

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.