March 5, 2025 4:46pm

With “Uncle algo and his electronic dwarfs” and their “rules” in the spin

Economic data points remain positive, sentiment indicators have shown rising fears among both business executives and consumers

News: A city of Duesseldorf, German court ruled that Pfizer (PFE +$0.19) and its partner BioNTech (BNTX +$5.12) violated a COVID-19 vaccine patent held by Moderna (MRNA +$4.84). The court in the said that PFE and BNTX would have to provide information on earnings derived from the use of the patent and that they owe MRNA appropriate compensation, though the ruling can still be appealed to a higher court. However, the court added that PFE and BNTX had argued they were authorized by a press release from MRNA to use the technology behind the patent until the World Health Organization declared in May 2023 that COVID-19 was no longer a global health emergency.

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: No a.m. post – doctor’s appointment

Tuesday night’s RegMed Investors (RMi) Closing Bell: sector: Today’s whack the sector with a slow positive comeback … https://www.regmedinvestors.com/articles/13826

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

 

Wednesday: The Dow closed UP +485.36 points or +1.14%, the S&P closed UP +64.48 points or +1.12% while the Nasdaq closed UP +267.57 points or +1.46%

  • Even with Wednesday’s respite, the 3 major indexes are still all down more than 1% on the week
  • A recovery rally after an exemption for automakers from President Trump’s tariffs offered hope for concessions

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

  • Private companies added just 77,000 new workers for the month, well off the upwardly revised 186,000 in January and below the 148,000 estimates. The report reflected tariff concerns, as a sector that lumps together trade, transportation and utility jobs saw a loss of 33,000 positions. On the positive side, leisure and hospitality jobs jumped by 41,000, while professional and business services added 27,000 and financial activities and construction both saw gains of 25,000.

Wednesday’s advance/decline line opened with a positive 23 incliner, 11 decliners and 1 flat ending with a positive close of 25 incliners, 9 decliners and 1 flat

Metrics:  Wednesday, the IBB was up +2.43%, the XBI was up +1.69% while the VIX was down – 1.66 points or -7.04% at 21.85 after Tuesday’s 22.93 and Monday’s 22.93

 

As compared to … Tuesday: The Dow closed DOWN -670.25 points or -1.55%, the S&P closed DOWN -71.57 points or -1.22% while the Nasdaq closed DOWN -65.03 points or -0.35%

  • This week’s sell-off pushed the S&P 500 into the red for 2025 and the Dow near flat on the year
  • As the CBOE Volatility Index (VIX), shot up to 23.60

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

  • U.S. stocks continued sliding Tuesday as President Donald Trump’s tariffs on Canada, Mexico and China took effect and prompted retaliatory measures, escalating concerns among investors about the economy.                        

Tuesday’s advance/decline line opened with a negative 4 incliner, 29 decliners and 2 flats ending with a negative close of 15 incliners, 18 decliners and 2 flats

Metrics:  Tuesday, the IBB was up +0.12%, the XBI was up +0.53% while the VIX was up +0.82 points or +3.59% at 23.60

 

Q1/25 – March, 1 positive and 2 negative closes

  • 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

 

Wednesday’s Closing UP (10 of 25)

  • Alnylam Pharmaceuticals (ALNY +$6.30 after Tuesday’s -$0.60 after Monday’s -$3.22),
  • Moderna (MRNA +$4.84 after Tuesday’s +$0.10 after Monday’s -$0.69),
  • BioLife Solutions (BLFS +$1.41 after Tuesday’s +$0.33 after Monday’s +$0.51 after earnings release),
  • Lenz Therapeutics (LENZ +$1.36)
  • Ionis Pharmaceuticals (IONS +$0.80 after Tuesday’s +$0.35),
  • UniQure NV (QURE +$0.76 after Tuesday’s +$0.43 after Monday’s -$2.25),
  • Blueprint Medicine (BPMC +$0.54 after Tuesday’s -$0.38 after Monday’s -$6.82),
  • Solid Biosciences (SLDB +$ after Tuesday’s +$0.19),
  • CRISPR Therapeutics (CRSP +$0.45 after Tuesday’s +$1.16 after Monday’s -$1.63),
  • Vericel (VCEL +$0.39 after Tuesday’s +$1.63 after Monday’s -$1.78),

Flat (1)

  • Homology Medicine (FIXX)

Wednesday’s Closing DOWN (9 of 9):

  • AxoGen (AXGN -$0.41 after Tuesday’s -$0.67 after Monday’s -$0.72),
  • Beam Therapeutics (BEAM -$0.33 after Tuesday’ +$1.34 after Monday’s -$1.24),
  • Ultragenyx Pharmaceuticals (RARE -$0.23 after Tuesday’s -$0.16 after Monday’s -$1.66),
  • Agenus (AGEN -$0.17),
  • Harvard Apparatus RT (OTCQB: HRGN -$0.09),
  • Fate Therapeutics (FATE -$0.0449 after Tuesday’s -$0.08),
  • MiMedx (MDXG -$0.02 after Tuesday’s -$0.20),
  • Compass Therapeutics (CMPX -$0.01),
  • Generation bio (GBIO -$0.0075),

 

The BOTTOM LINE: Wednesday, 3/5 – the 1st POSITIVE close after the 2nd NEGATIVE session from a new March beginning … what moves stock pricing?

  • Answer … “Uncle algo and his electronic trading dwarfs”
  • 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%.

 

Quote t think though …Investors have been hesitant to invest in healthcare stocks (XLV) as the sector’s returns have lagged behind gains in the broader market.

  • But the market may begin to favor healthcare again, according to one strategist.
  • I think there's a good setup of data to start adding healthcare to your portfolio,” Strategas Asset Management ETF strategist Todd Sohn said on an episode of the Stocks in Translation podcast (see video above or listen below) that aired on Feb. 11. He emphasized diversification in healthcare ETFs, “so you're going to get providers, you're going to get equipment and biotech.”
  • Sohn acknowledged that “it’s been a rough go for healthcare” as of late.
  • The healthcare sector placed in the bottom decile of S&P sector performance in the past five years.”
  • "While that may make healthcare stocks seem like a less-than-lucrative investment option, Sohn argued they're due for better performance — especially considering the recent sell-offs in tech."

 

The Federal Reserve’s “Beige Book” summary of economic conditions:

  • Businesses are expressing rising concerns about President Donald Trump’s tariff threats
  • The economic summary mentioned “tariffs” 45 times, a sharp spike from recent releases and higher than during the president’s previous initiation of tariffs in April 2018, which saw 32 mentions. Much of the commentary in individual regions was similar: “Contacts in most Districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively,” the report stated.
  • Elsewhere, the report, which is released about every seven weeks, characterized economic activity overall as rising “slightly” since the last release Jan. 15, as “employment nudged slightly higher” and prices “increased moderately in most Districts, but several Districts reported an uptick in the pace of increase relative to the previous reporting period.” <Jeff Cox, CNBC>

 

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.” <me>
  • Individual investors yanked more than $1 billion from U.S. equities on Tuesday
  • Retail traders are getting wary of market volatility, according to new data from JPMorgan.
  • Individual investors pulled out $1.2 billion from the U.S. equity market in the first hour of Tuesday’s trading session, marking the largest pullback during that time period since JPMorgan’s data tracking this activity began a decade ago.
  • That is a comedown in sentiment among retail investors, who have become a significant part of the U.S. equity market in recent months. <Pia Singh, CNBC>

 

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

  • Editas Medicine (EDIT) – today, 3/5
  • Agenus (AGEN) – Tuesday, 3/11
  • Voyager Therapeutics (VYGR) - Tuesday, 3/11

 

March ‘25: understand the “flow” …

  • 3/5 – Wednesday closed positive 
  • 3 /4 – Tuesday closed negative 
  • 3/3 – Monday closed negative

 

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:   

  • Wednesday: Alnylam Pharmaceuticals (ALNY), Moderna (MRNA) and BioLife Solutions (BLFS)
  • Tuesday: Beam Therapeutics (BEAM), Vericel (VCEL) and CRISPR Therapeutics (CRSP)
  • Monday: BioLife Solutions (BLFS) and Harvard Apparatus RT (OTCQB: HRGN)

The worst three (3) in the session: 

  • Wednesday: Ultragenyx Pharmaceuticals (RARE), Beam Therapeutics (BEAM) and Agenus (AGEN)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Mesoblast (MESO) and AxoGen (AXGN)
  • Monday: Blueprint Medicine (BPMC), uniQure NV (QURE) and Alnylam Pharmaceuticals (ALNY),

 

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.