December 30, 2024 4:47pm
The Dow, S&P, Nasdaq and the cell and gene therapy sector
There was no apparent news catalyst for Monday’s decline, trading was light given the shortened week as the last week of December is weak which bodes well for a rebound in January
News: Sangamo Therapeutics (SGMO -$0.22 with an aftermarket of -$0.83 or -35.84% to $1.5097) will regain development and commercialization rights to giroctocogene fitelparvovec (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!
On point, short on words, long on facts and being judicious!
Never above you, never below you, always beside you!
News continued: Sangamo Therapeutics (SGMO) regained … giroctocogene fitelparvovec, an investigational gene therapy product candidate for the treatment of adults with moderately severe to severe hemophilia A that it has co-developed with, and licensed to Pfizer (PFE)following a decision by PFE to terminate the global collaboration and license agreement between the parties. SGMO intends to explore all options to advance the program, including seeking a potential new collaboration partner. PFE has indicated to Sangamo that this termination reflects its decision not to proceed with the Biologics License Application (BLA) and Marketing Authorization Application (MAA) submissions for, or to pursue commercialization of, giroctocogene fitelparvovec.
Monday: The Dow closed DOWN -418.48 points or -0.97%, the S&P closed DOWN -63.90 points or -1.07% while the Nasdaq closed DOWN -235.25 points or -1.19%
- Indexes declined on Monday, in one of the last few trading sessions of 2024, potentially putting a sour ending on a banner year for investors.
- The market closed Wednesday in observance of New Year’s Day.
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 Chicago purchasing managers index for December did miss expectations on Monday, coming in at 36.9. Economists surveyed were expecting a reading of 42.2.
Monday’s advance/decline line at the open was negative with 3 incliners, 30 declined and 2 flats; ending with a negative close at the close of 7 incliner, 27 decliners and 1 flat
- Sentiment and conviction have been ripped from our vocabulary
Metrics: Monday, the IBB was down -1.85%, the XBI was down -1.46% while the VIX was up +1.45 points or +9.09% at 17.40
As compared to: Friday: The Dow closed DOWN -333.59 points or -0.77%, the S&P closed DOWN -66.75 points or -1.11% while the Nasdaq closed DOWN -298.33 points or -1.49%
- Indexes declined on Friday, with the Dow erasing earlier gains in the holiday-shortened week
- With Friday’s sell-off, the Dow turned negative on the week, while the Nasdaq sat near flat and the S&P 500 is up just 0.2% this week.
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
- No one seemed to care
Friday’s advance/decline line at the open was negative with 17 incliners, 15 declined and 3 flats; ending with a negative close at the close of 1 incliner, 31 decliners and 3 flats
• Sentiment was wiped from our shoes as we walked-in
Metrics: Friday, the IBB was down -1.15%, the XBI was down -1.30% while the VIX was up +1.22 points or +8.30% at 15.95
Q4/24 – 1 holiday, 5 positive and 15 negative closes
- November – 1 holiday, 10 negative and 10 positive closes
- October: 8 positive and 15 negative sessions
Monday’s Closing Down (10 of 27):
- Blueprint Medicine (BPMC -$3.58 after Friday’s -$2.22),
- Vericel (VCEL -$2.03),
- Alnylam Pharmaceuticals (ALNY -$1.96 after Friday’s -$4.53),
- CRISPR Therapeutics (CRSP -$1.37 after Friday’s -$1.05),
- Beam Therapeutics (BEAM -$1.32 after Friday’s -$2.11),
- Lenz Therapeutics (LENZ -$1.25 after Friday’s -$0.69),
- Ultragenyx Pharmaceuticals (RARE -$1.15 after Friday’s -$0.40),
- Ionis Pharmaceuticals (IONS -$0.99 after Friday’s -$0.42),
- bluebird bio (BLUE -$0.92),
- Moderna (MRNA -$0.74),
Flat (1)
- Homology Medicine (FIXX)
Monday’s Closing Up (7 of 7):
- Mesoblast (MESO +$3.51 after Friday’s -$0.76),
- Cellectis SDA (CLLS +$0.41),
- Harvard Apparatus RT (OTCQB: HRGN +$0.27)
- Precigen (PGEN +$0.20),
- MiMedx (MDXG +$0.06 after Friday’s +$0.03),
- Compass Therapeutics (CMPX +$0.02),
- Fate Therapeutics (FATE +$0.01),
The BOTTOM LINE: The New Year is due and a whole new group of expectations.
Worries have mounted that the market may be losing momentum, with what appears to be year-end profit-taking after the major averages notched losing sessions Friday.
- Trading in the bond market could also be contributing to the pullback in tech stocks. The 10-year Treasury yield traded above 4.6% last week, though it retreated Monday. <CNBC>
A quote to ponder, “Markets have largely digested the year's remaining key economic data points, and investors are now turning their attention to two big themes for the coming year: the Fed's path for interest rates and the implications of Trump's ascent back to the White House.”
The cell and gene therapy sector stocks is about to end the 5th week of December, the final month of 2024 with …
- The last sessions of December with Monday closing negative …
- Monday of the second to last week of December closed negative … Tuesday closed positive, Wednesday was a holiday while Thursday and Friday closed negative
- Last Monday’s positive close with a Tuesday barely positive close followed by a Wednesday’s deeply negative with yet another Thursday negative close … followed by a positive close
- The previous week, ended with 5 negative closes
- December’s 1st week ‘s Monday positive close was followed by negative closes on Thursday and Wednesday, Tuesday’s and then Friday’s positive close
Come January be selective in BUYs, let go of SELLs … share pricing “blossoms” are coming
As I have written “Many sector companies are engaged in cost realignment programs, which won’t be realized consequences over the next few Qs where the operating expense levels; spending on SG&A (selling, informational, and administrative) and R&D (research and development) facilitate the need to extend runways and enable expectation of clinical innovations.”
- "I think the market's going to come back to earnings, the first couple of months of 2025, and 1st H will be a shifting cell and gene therapy sector due to earnings releases... I still believe stocks will swing upward pre and them more post releases
- They had better, capital markets have been floundering on follow-on offerings.
Why do I keep repeating, so investors can make the connection …
The top three (3) performing in the session:
- Monday: Mesoblast (MESO), Cellectis SDA (CLLS) and Harvard Apparatus RT (OTCQB: HRGN)
- Friday: MiMedx (MDXG)
The worst three (3) in the session:
- Monday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals (ALNY) and Vericel (VCEL)
- Friday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) 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.
