February 10, 2025 4:49pm

Today, Friday and Thursday’s losses wiped out most of the gains for the last few weeks

Earnings: MDXG, BPMC, IONS, SAGE, MRNA and ALNY – so far <see The Bottom Line>

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

Never leave an investor uninformed! 

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

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 +167.01 points or +0.38%, the S&P closed UP +40.45 points or +0.67% while the Nasdaq closed UP +190.87 points or +0.98%

  • Indexes closed up while traders looked past the latest U.S. tariff threat

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

  • None, but the January consumer price index report is due out Wednesday at 8:30 a.m. ET, followed by initial weekly jobless claims and the producer price index on Thursday. Fed Chair Powell will also speak before Congress on Tuesday morning.

Monday’s advance/decline line opened with a negative close at the close of 8 incliner, 24 decliners and 3 flats ending with a negative close of 11 incliners, 23 decliners and 2 flats

Metrics:  Monday, the IBB was down -1.52%, the XBI was down -0.92% while the VIX was down -0.73 points or -4.41% at 15.81

 

Friday: The Dow closed DOWN -444.23 points or -0.99%, the S&P closed DOWN -57.58 points or -0.95% while the Nasdaq closed DOWN -268.59 points or -1.36%

  • Indexes closed lower on Friday as a mix of news related to tariffs and inflation worried traders to close out the week after President Trump said he was planning reciprocal tariffs on trading partners. This could mean raising tariff levels across the board to equal rates charged to the U.S.

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

  • Consumer sentiment fell in February to 67.8, according to a preliminary reading of the University of Michigan’s consumer sentiment index. Economists had expected 71.3.
  • The report’s respondents anticipate the one-year inflation rate to hit 4.3%, marking a rise of 1% point from the previous month and its highest level since November 2023.
  • The U.S. economy added just 143,000 jobs in January, but the unemployment rate fell to 4%.
  • Jobs growth in January was down significantly from an upwardly revised 307,000 in December and missed consensus expectations of 169,000 for the month.
  • The report made significant revisions to 2024 totals. The revisions, which the BLS does each year, reduced the jobs count by 589,000. A preliminary adjustment back in August 2024 had indicated 818,000

Friday’s advance/decline line opened negative with 10 incliners, 22 decliners and 3 flat ending with a negative close of 2 incliners, 31 decliners and 2 flats

Metrics:  Friday, the IBB was down -2.89%, the XBI was down -2.13% while the VIX was UP +1.04, points or +6.71% at 16.54

 

Q1/25 – February – 4 negative and 2 positive closes

  • January - 2 holidays, 1 market close, 10 negative and 10 positive closes

Q4/24 –

  • December - 1 holiday, 6 positive and 15 negative closes
  • November – 1 holiday, 10 negative and 10 positive closes              
  • October: 8 positive and 15 negative sessions

 

Monday’s Closing UP (11 of 11)

  • Solid Biosciences (SLDB +$0.56),
  • Compass Therapeutics (CMPX +$0.40),
  • Vericel (VCEL +$0.30 after Friday’s -$1.35),
  • Adverum Biotechnologies (ADVM +$0.14),
  • Ionis Pharmaceuticals (IONS +$0.08 after Friday’s -$1.23)
  • Precigen (PGEN +$0.08 after Friday’s +$0.10),
  • MiMedx (MDXG +$0.04),
  • Cellectis SA (CLLS +$0.02),
  • Harvard Apparatus RT (OTCQB: HRGN +$0.02 after Friday’s $0.00),
  • Sage Therapeutics (SAGE +$0.01),
  • Sangamo Therapeutics (SGMO +$0.01)

Flat (2)

  • bluebird bio (BLUE)
  • Homology Medicine (FIXX)

Monday’s Closing DOWN (10 of 23): 

  • Alnylam Pharmaceuticals (ALNY -$2.13 after Friday’s -$2.06),
  • uniQure NV (QURE -$0.99 after Friday’s -$1.58),
  • Blueprint Medicine (BPMC -$0.98 after Friday’s -$4.64),
  • Beam Therapeutics (BEAM -$0.84),
  • Mesoblast (MESP -$0.81 after Friday’s +$0.80),
  • Moderna (MRNA -$0.73 after Friday’s -$1.01),
  • Ultragenyx Pharmaceuticals (RARE -$0.57 after Friday’s -$0.43
  • Regenxbio (RGNX -$0.32),
  • CRISPR Therapeutics (CRSP -$0.30 after Friday’s -$0.90)
  • Lenz Therapeutics (LENZ -$0.28 after Friday’s -$1.41),

 

The BOTTOM LINE:  Monday, Friday and Thursday closed negative session after last Wednesday and Tuesday’s session closed positive upending the previous Monday's negative close.

  • I don’t have much to write/say other than “electronic trading and uncle algo” slipped out the back door reaping sector disharmony.

 

Earnings are a-comin’ … from Q4/24 and FY24 are due …

  • Sage Therapeutics (SAGE) - Tuesday, 2/11
  • Blueprint Medicine (BPMC) – Thursday, 2/13
  • Alnylam Pharmaceuticals (ALNY) – Thursday, 2/13
  • Moderna (MRNA) - Friday, 2/14
  • Ionis pharmaceuticals IONS) – Wednesday, 2/19
  • MiMedx (MDXG) – Wednesday, 2/26

 

February ‘25: understand the “flow” …

  • 2/10 – Monday ended with a negative close at the close of x incliner, xx decliners and x flats
  • 2/7 – Friday ended with a negative close at the close of 2 incliner, 31 decliners and 2 flats
  • 2/6 – Thursday ended with a negative close at the close of 8 incliner, 24 decliners and 3 flats
  • 2/5 - Wednesday ended with a positive close at the close of 26 incliner, 4 decliners and 5 flats
  • 2/4 - Tuesday ended with a positive close at the close of 24 incliner, 9 decliners and 2 flats
  • 2/3 – Monday - ended with a negative close at the close of 8 incliner, 25 decliners and 2 flats

 

I keep reiterating as earnings are about to support my theses …

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/25 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

Big Point to remember “Think about it; the biggest problem the cell and gene therapy sector it’s all to the future …  99% of them have no earnings!

  • If rates are higher for longer, that means that sector companies will continue to struggle or be unable to raise capital and therefore be subject to debt servicing firms!”
  • 2024 saw very little life IPOs (initial public offering) market and secondaries – I have seen private investments, mortgages, sell-offs, as companies deferred and struggle to gain further market access i.e., public. <Me>

What could 2025 have in store for the capital access space?

  • "You'll see a number of cell and gene therapy comandantes drive for secondaries – they’re desperate for cash, but I do think a lot of cell and gene therapy sector companies NEED to be focused on what is driving their own growth —they're focused on a lot of change BUT … that's happening in pipelines … capital expansion is second.

 

Why do I keep repeating, so investors can make the connection …

The top three (3) performing in the session:   

  • Monday: Solid Biosciences (SLDB), Compass therapeutics (CMPX) and Vericel (VCEL)
  • Friday: Mesoblast (MESO) and Precigen (PGEN)

The worst three (3) in the session: 

  • Monday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and uniQure NV (QURE)
  • Friday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals (ALNY) and uniQure NV (QURE)

 

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.