October 30, 2024 4:43pm

Blueprint Medicine (BPMC) reported Q3/24 earnings, a net loss of -$56.3 or -$0.89 per share, revenue was $128.2 M with costs of -$1.9 M with a 2026 runway and a cash position of $882.4 M. BPMC guidance, anticipates approximately $475 M to $480 M in global AYVAKIT net product revenues in 2024.

 

MiMedx (MDXG) reported Q3/24 net income of +$8.095 or +$0.05 per share, revenue was $84 M with gross profit of $69 M with a 2026 runway and a cash position of $89 M. Longer-term, MDXG expects to achieve annual net sales growth in the low double-digits as a % with an adjusted EBITDA margin above 20%.

The trend is NOT your friend.”  Just wait a session and the direction will change from tailwinds to headwinds … or NOT!

Never leave an investor uninformed!  

 

On point, short on words, long on facts and being judicious!

It’s hard to be right so often, it’s about defining insight. Who speaks out while standing in-front, beside and behind investors – RMi

 

RegMed Investors (RMi) Research Note: Q3/24 earnings reporting dates, net losses, cash positions, revenue and runway outcomes … https://www.regmedinvestors.com/articles/13441

 

Wednesday: The Dow closed DOWN -91.51 points or -0.22%, the S&P closed DOWN -19.25 points or -0.33% while the Nasdaq closed DOWN -104.82 points or -0.56%

  • Indexes struggled to the downside after a mixed session as trading varied on Wednesday after the 3rd sector earnings reports

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 …

  • GDP rose at a 2.8% annualized rate, while economists surveyed had been looking for an increase of 3.1%.
  • The National Association of Realtors (NAR) Pending Home Sales Index, based on signed contracts, rose 7.4% last month to 75.8 - the highest since March - from 70.6 in August.

Wednesday’s advance/decline line at the open was positive with 20 incliners, 13 decliners and 2 flats; ending with a negative close at the close of 9 incliner, 25 decliners and 1 flat

  • Cell and gene therapy sector dived (Wednesday and Tuesday) after ascending on Monday

Metrics:  Wednesday, the IBB was down -0.01% and the XBI was down -0.14% while the VIX was up +0.75 points or +3.89% at 20.09

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:  Q4/24

  • 8 positive and 14 negative sessions

Q3/24

  • September – 10 positive and 11 negative closes
  • August: 1 neutral, 10 positive and 11 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Wednesday’s Closing Down (10 of 25):

  • Alnylam Pharmaceuticals (ALNY -$3.20 after Tuesday’s -$2.22 after Monday’s +$2.05),
  • Sage Therapeutics (SAGE -$2.04),
  • CRISPR Therapeutics (CRSP -$1.01 after Tuesday’s -$0.77 after Monday’s +$2.35),
  • Ultragenyx Pharmaceuticals (ALNY -$0.96 after Tuesday’s -$0.27 after Monday’s -$0.75),
  • Intellia Therapeutics (NTLA -$0.66 after Tuesday’s -$1.35),
  • Lenz Therapeutics (LENZ -$0.57 after Tuesday’s -$0.29 after Monday’s +$1.48),
  • Moderna (MRNA -$0.50 after Tuesday’s +$0.42 after Monday’s +$1.71),
  • Ionis Pharmaceuticals (IONS -$0.45 after Tuesday’s -$0.65 after Monday’s +$1.17),
  • Vericel (VCEL -$0.29 after Tuesday’s +$0.17 after Monday’s +$1.91),
  • Mesoblast MESO -$0.25),

Flat (1):

  • Homology Medicine (FIXX)

Wednesday’s Closing Up (9 of 9):

  • Blueprint Medicine (BPMC +$5.84 after Tuesday’s -$0.63),
  • AxoGen (AXGN +$0.49 after Tuesday’s +$0.02 after Monday’s +$0.63)
  • BioLife Solutions (BLFS +$0.47 after Tuesday’s +$0.73 after Monday’s +$0.83),
  • Harvard Apparatus RT (OTCQB: HRGN +$0.40 after Tuesday’s $0.00),
  • Beam Therapeutics (BEAM +$0.33),
  • Adverum Biotechnologies (ADVM+$0.12 after Tuesday’s -$0.16 after Monday’s -$0.96),
  • Caribou Biosciences (CRBU +$0.04),
  • Solid Biosciences (SLDB +$0.04),
  • Compass Therapeutics (CMPX +$0.01 after Tuesday’s +$0.02 after Monday’s -$0.04),

 

The BOTTOM LINE:  Equity trading was sold to the negative, while the cell and gene therapy sector claimed its 3rd release.

  • Traders trimmed bets on policy easing after Wednesday’s economic reports. Treasury two-year yields, which are more sensitive to imminent Fed moves, rose four basis points to 4.14%.
  • Share pricing is still jumping the cracks in the pavement – missing many to fall into the street!

 

Interesting %’s … Consumer spending, which comprises the largest share of economic activity, advanced 3.7%, the most since early 2023. The acceleration was led by broad increases across goods, including autos, household furnishings and recreational items.

  • At the same time, a closely watched measure of underlying inflation rose 2.2%, roughly in line with the Fed’s target, figures from the Bureau of Economic Analysis showed.

 

I CONTINUE to write about areas of concern, "I’m just not sure what's going to reignite share pricing SUSTAINABILTY as earnings season is about to … HIT with LPS (loss-per-share) expectation and consensus. "

  • Although, the wide dispersion of potential outcomes in elections, interest rates, and geopolitical situations globally has created volatility.

 

Cell and gene therapy sector equities closed Negative on Wednesday and Tuesday after Monday’s ride to the positive upside …

  • on Friday followed the week’s dive … after Thursday, Wednesday, Tuesday and Monday’s negative closes …
  • After jumping on last Friday after diving on Thursday after ascending on Wednesday, Tuesday and Monday pushed by a tailwind to a new high.
  • Having fluctuated to the UPSIDE on Friday after a NEGATIVE close on Thursday, Wednesday; Tuesday and Monday.
  • After popping on the previous, previous Friday following a negative close on Thursday, Wednesday, Tuesday and last Monday.

 

Sector LPS (loss-per-share) earnings are due by at the least the 5th week of October – and them it is time – to thin the ranks of some I.e., SELL before any collapse of share pricing.

  • FOCUS and be aware on those with development partners, runways and ATM usage

Also, be aware that portfolio managers will be addressing rotations as year comes to an end trying to be careful to spread them out over the last few months in Q4.

I keep writing about uncertainty and skepticism … and coming realities.

  • Even with the potential for some market hiccups along the way, the good news is Q4 has historically skewed positively, even as sector earnings kicked the bucket down the road!

 

Ranking the Month of October and Q4/24 beginning:   

  • 10/30 - Wednesday advance/decline line ended with a negative close of 9 incliner, 25 decliners and 1 flat
  • 10/29 - Tuesday advance/decline line ended with a negative close of 11 incliner, 22 decliners and 2 flats
  • 10/28 - Monday advance/decline line ended with a positive close of 29 incliner, 4 decliners and 2 flats
  • 10/25 - Friday advance/decline line ended with a negative close of 15 incliner, 17 decliners and 3 flats
  • 10/24 - Thursday advance/decline line ended with a negative close of 12 incliner, 22 decliners and 1 flat
  • 10/23 - Wednesday advance/decline line ended with a negative close of 9 incliner, 23 decliners and 3 flat

 

The top three (3) performing in the session:    

  • Wednesday: Blueprint Medicine (BPMC), AxoGen (AXGN) and Harvard Apparatus RT (OTCQB: HRGN)
  • Tuesday: BioLife Solutions, Blueprint Medicine (BPMC) and Moderna (MRNA)
  • Monday: CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY) and Vericel (VCEL)

The worst three (3) in the session: 

  • Wednesday: Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY) and CRISPR Therapeutics (CRSP)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Intellia Therapeutics (NTLA) and CRISPR Therapeutics (CRSP)
  • Monday: Ultragenyx Pharmaceuticals (RARE), Adverum Biotechnologies (ADVM) and Compass Therapeutics CMPX)

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.