March 3, 2025 4:31pm

Doesn’t do much to stimulate investor attraction

As economic data influences share pricing while also outweighing tariff fears

Who speaks up and out while standing in-front, beside and behind investors – RMi

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.”

 

RegMed Investors’ (RMi) pre-open: New month of March welcome … https://www.regmedinvestors.com/articles/13823

RegMed Investors (RMi) Research Note: The clock continues to tick down on Harvard Apparatus GT (OTCQB: HRGN) … https://www.regmedinvestors.com/articles/13812

 

Monday: The Dow closed DOWN -649.67 points or -1.48%, the S&P closed DOWN -104.78 points or -1.76% while the Nasdaq closed DOWN -497.09 points or -2.64%

  • Plans to impose import duties on key U.S. trading partners this week loom over the stock market; rattling investors and stirring-up volatility recently as traders worry that they will reignite inflation.            

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

  • Soft economic data … The Institute for Supply Management’s monthly manufacturing index registered a 50.3 (above 50 indicates growth) down -0.6% point from January and slightly below the 50.6 estimate.
  • Within the survey, the new orders index tumbled to 48.6, a decline of 6.5 points, while the employment index fell to 47.6; the prices index jumped 7.5 points to 62.4.

Monday’s advance/decline line opened with a negative 7 incliner, 26 decliners and 2 flats ending with a negative close of 2 incliners, 31 decliners and 2 flats

Metrics:  Monday, the IBB was down -2.79%, the XBI was down -3.09% while the VIX was up +3.30 points or +16.80% at 22.93

 

As compared to …

Friday: The Dow closed UP +601.41 points or +1.39%, the S&P closed UP +92.93 points or +1.59% while the Nasdaq closed UP +902.86 points or +1.63%

  • Last session of February as stocks managed to rise Friday to wrap up a volatile week and a losing month for the major averages. For February, the Nasdaq slid -4% due largely to a 3.5% drop this week’ the index’s worst month since April 2024. The S&P 500 declined roughly 1% for the week and 1.4% in February. The Dow has managed to outperform, rising about 1% in the week; for February it dropped 1.6%.

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 personal consumption expenditures price index, the Fed’s preferred inflation measure, increased 0.3% for the month and showed a 2.5% annual rate. Excluding food and energy, core PCE also rose 0.3% for the month and was at 2.6% annually. Fed officials more closely follow the core measure as a better indicator of longer-term trends. Personal income posted rose 0.9% against expectations for a 0.4% increase. However, the higher incomes did not translate into spending, which decreased 0.2%, versus the forecast for a 0.1% gain. Goods prices rose 0.5% on the month, pushed by a 0.9% increase in motor vehicles and parts as well as a 2% jump in gasoline. Services increased just 0.2% and housing rose 0.3%.

Friday’s advance/decline line opened with a positive 20 incliner, 14 decliners and 1 flat ending with a positive close of 25 incliners, 9 decliners and 1 flat

Metrics:  Friday, the IBB was up +1.55%, the XBI was up +1.61% while the VIX was down -1.50 points or -7.10% at 19.63

 

Q1/25 – March, 1 negative close

  • February – 12 holiday, 11 negative and 7 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 (2 of 2)

  • BioLife Solutions (BLFS +$0.51 after earnings release and Friday’s close of +$0.42),
  • Harvard Apparatus RT (OTCQB: HRGN +$0.03 after Friday’s -$0.01),

Flat (2)

  • Cellectis SA (CLLS),
  • Homology Medicine (FIXX)

Monday’s Closing DOWN (10 of 31):

  • Blueprint Medicine (BPMC -$6.82 after Friday’s +$6.15),
  • Alnylam Pharmaceuticals (ALNY -$3.22 after Friday’s +$9.65),
  • uniQure NV (QURE -$2.25 after Friday’s +$1.08),
  • Vericel (VCEL -$1.78),
  • Mesoblast (MESO -$1.74 after Friday’s +$1.61),
  • CRISPR Therapeutics (CRSP -$1.63),
  • Ultragenyx Pharmaceuticals (RARE -$1.66 after Friday’s +$0.96
  • Beam Therapeutics (BEAM -$1.24 after Friday’s -$0.77),
  • AxoGen (AXGN -$0.72 after Friday’s +$0.58),
  • Moderna (MRNA -$0.69 after Friday’s -$0.13),

 

The BOTTOM LINE: Monday, 3/3 – a new March beginning … what moves stock pricing?

  • US stocks plummeted on Monday afternoon, with selling accelerating in the last hour of trading after President Trump indicated there was "no room left" for tariff negotiations with Canada and Mexico, indicating that new levies against both countries will go into effect tomorrow.
  • Last week in February’s end, all 3 indexes notched losses for February, the Dow and S&P 500 each slipped more than 1% in February, while the Nasdaq recorded its worst month since April 2024 with a drop of -4%.

 

Coming attractions: The week will bring a crucial jobs report and a batch of retail earnings that could feed or ease concerns about an economic downturn and consumer resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%. <Yahoo Finance>

 

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

  • What can I say, love ‘em, leave ‘em and welcome back to save the sector’s honor – “uncle algo and his electronic dwarfs”.

 

Earnings are here … from Q4/24 and FY24 … my view will follow, has been busy and personally eventful!

  • BioLife Solutions (BLFS) – Monday, 3/3
  • Editas Medicine (EDIT) – Wednesday, 3/5
  • Agenus (AGEN) – Tuesday, 3/11

 

March ‘25: understand the “flow” …

  • 3/3 – Monday – 1 negative close

 

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: BioLife Solutions (BLFS) and Harvard Apparatus RT (OTCQB: HRGN)
  • Friday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and Ionis Pharmaceuticals (IONS)

The worst three (3) in the session: 

  • Monday: Blueprint Medicine (BPMC), uniQure NV (QURE) and Alnylam Pharmaceuticals (ALNY),
  • Friday: Intellia Therapeutics (NTLA), Beam Therapeutics (BEAM) and Moderna (MRNA)

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.