August 26, 2024 4:42pm

Cell and gene therapy sector gave up some early gains to recapture the upside at close

News: Vericel (VCEL +$0.65) the FDA has approved a supplemental Biologics License Application (sBLA) expanding the MACI® (autologous cultured chondrocytes on porcine collagen membrane) label to include arthroscopic delivery of MACI to repair symptomatic single or multiple full-thickness cartilage defects of the knee up to 4 cm2 in size. <continued below>

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 +65.44 points or +0.16%, the S&P closed DOWN -17.77 points or -0.32% while the Nasdaq closed DOWN -152.03 points or -0.85%

  • As compared with … Friday: The Dow closed UP +462.30 points or +1.14%, the S&P closed UP +63.97 points or +1.15% while the Nasdaq closed UP +258.44 points or +1.47%

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 …

  • The Dow reached a record high, before pulling back; the S&P slipped while the Nasdaq sank.  

Monday’s advance/decline line at the open was positive with 24 incliners, 8 declined and 3 flats; at 10:30 a.m., a dramatic decline occurred with a negative 9 incliners, 22 decliners and 4 flat ending with a positive close of 18 incliner, 13 decliners and 4 flats

  • As compared with … Friday’s advance/decline line at the open was positive with 28 incliners, 3 decliners and 4 flats; ending with a positive close of 28 incliner, 5 decliners and 2 flats

Metrics: •           

  • Monday: the IBB was down -0.07% and the XBI was up +0.19% and the VIX was up +1.30 point or +8.78% at 16.10
  • As compared with Friday … the IBB was up +1.02% and the XBI was up +1.37% and the VIX was down -1.93 point or down -10.97% at 15.62

Economic Data Docket: The Commerce Department showed orders for durable goods surged by 9.9% month over month in July versus expectations for a 4% lift and a reversal of the prior month's revised downwardly 6.9% slump.

  • Orders for new cars and trucks were up 34.8% last month. This was a sharp rebound from June's 20.6% fall. When the volatile transportation sector was excluded, orders rose 0.2% last month compared to a 0.1% gain in June.
  • Computers and electronics orders fell 0.7% while machinery orders held steady.

 

Vericel (VCEL) news in title continued: MACI ArthroTM provides a less invasive technique compared to the current approach, allowing surgeons to evaluate and prepare the defect site as well as deliver the MACI implant through small incisions using custom-designed MACI Arthro instruments.

 

RegMed Investors (RMi) Research Note: Harvard Apparatus RT (OTCQB: HRGN) raises $5 M without name identification … https://www.regmedinvestors.com/articles/13590

 

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

Q3/24

  • August: 1 neutral, 8 positive and 9 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Monday’s Closing Down (13 of 13):

  • Alnylam Pharmaceuticals (ALNY -$3.50 after Friday’s -$4.69),
  • Lenz Therapeutics (LENX -$0.50),
  • MiMedx (MDXG -$0.18 after Friday’s +$0.34),
  • Sage Therapeutics (SAGE -$0.13),
  • Ionis Pharmaceuticals (IONS -$0.12 after Friday’s -$0.62),
  • Solid Biosciences (SLDB -$0.10),
  • uniQure NV (QURE -$0.07 after Friday’s -$0.32),
  • Mesoblast (MESO -$0.06),
  • Intellia Therapeutics (NTLA -$0.05 after Friday’s +$0.75
  • Sangamo Therapeutics (SGMO -$0.0481 after Friday’s -$0.0022)
  • Regenxbio (RGNX -$0.02 after Friday’s +$0.46),
  • Brainstorm Cell Therapeutics (BCLI -$0.0148 after Friday’s -$0.0045),
  • Precigen (PGEN -$0.01),

Flat (4):

  • Bellicum Pharmaceuticals (BLCM)
  • Caribou Biosciences (CRBU)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX)

Monday’s Closing Up (10 of 18):

  • BioLife Solutions (BLFS +$ after Friday’s +$0.82
  • Vericel (VCEL +$0.65 after Friday’s +$1.91),
  • Blueprint Medicine (BPMC +$0.53 after Friday’s +$1.08),
  • CRISPR Therapeutics (CRSP +$0.48 after Friday’s +$1.35),
  • Beam Therapeutics (BEAM +$0.30 after Friday’s +$2.06),
  • Ultragenyx Pharmaceuticals (RARE +$0.30 after Friday’s +$0.31),
  • Verve Therapeutics (VERV +$0.17),
  • Adverum Biotechnologies (ADVM +$0.15),
  • AxoGen (AXGN +$0.14),
  • Generation BIO (GBIO +$0.12),

 

The BOTTOM LINE: Wham, slammed and a closing bam as cell and gene therapy sector gets; closing in the green.

“The market is in a pretty healthy place, but it is really hard to make big advances higher if Tech is a laggard — it’s just too big of a weight in the index — and right now, it is acting like a laggard.” <Baird analyst, Ross Mayfield>

 

Cell and gene therapy share pricing ascended last Friday – thank you Jerome and “uncle algo and his electronic trading dwarfs) after Thursday was shucked like corn after jumping on Wednesday after diving Tuesday after popping 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.

  • As “uncle algo and his electronic dwarfs” left the previous week’s Friday’s closing sector pricing neutral, pumped 2 sessions and dumped 2 sessions of the cell and gene therapy sector’s share pricing!
  • The second week of the month 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 1st week of August’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 …

 

Reiterating from Friday, "I think the idea that volatility is behind us is wrong... There's a lot of things that can bring volatility over the coming 30 days, over the coming couple of months. And so, I think it's wrong to be complacent. You have to be very nimble and very wary of it. And that's why I think the most important dip to buy is probably VIX." < Interactive Brokers chief strategist Steve Sosnick>

 

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.

 

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’s 3rd full week:

  • (8/26) Monday with a positive close of 18 incliners, 13 decliners and 4 flats
  • Friday ended with a positive close of 28 incliner, 5 decliners and 2 flats
  • Thursday ended with a negative close of 2 incliners, 29 decliners and 4 flats
  • Wednesday ended with a positive close of 29 incliner, 3 decliners and 3 flats
  • Tuesday ended with a negative close of 8 incliner, 24 decliners and 3 flats
  • (8/19) Monday ended with a positive close of 27 incliner, 6 decliners and 2 flats

 

Electronic trading pops and flops the cell and gene therapy sector

  • There is evidence of a slower … slowdown coming (it’s the contrarian in me) and it's going to become even more thin as we go forward into 2H/24.

 

The top three (3) performing in the session: 

  • Monday: BioLife Solutions (BLFS), Vericel (VCEL) and Blueprint Medicine (BPMC)

The worst three (3) in the session: 

  • Monday: Alnylam Pharmaceuticals (ALNY), Lenz Therapeutics (LENZ) and MiMedx (MDXG)

 

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.