February 21, 2024 4:58pm

Weak upsides …

Earnings: CRISPR Therapeutics (CRSP) and Ionis Pharmaceuticals (IONS) <see RMi report card>

The Harvard Apparatus GT (OTCQB: HRGN) Chronicles: see The Bottom Line

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Today is another example of the sector being what it is, until it isn’t and even then, it doesn’t seem to be … that is after taking a deep breath and holding it

I write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others will not say or write about – facts in evidence! 

Economic data releases and Fed responses send equities seesawing back and forth.

 

Wednesday: The Dow closed UP +48.44 points or +0.13%, the S&P closed UP +6.29 points +0.13% while the Nasdaq closed DOWN -49.91 points or -0.31%

 

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 …

Wednesday indexes closed mixed … as The Nasdaq slid for a third day in a row.

Economic Data Docket: Fed officials indicated at their last meeting that they were in no hurry to cut interest rates and expressed both optimism and caution on inflation, according to minutes from the session released.

 

Wednesday’s RegMed Investors’ (RMi) pre-open: None, sick-call

 

Advance/Decline (A/D) Line:

  • Wednesday’s advance/decline line at the open was negative with 7 incliner, 26 decliners and 2 flats; ending with a positive close of 18 incliners, 15 decliners and 2 flats

 

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

Q1/24: February, 1 holiday, 7 negative and 7 positive closes

  • January: 2 holiday, 12 negative and 8 positive closes

 

Key Metrics:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB was up +0.29% and the XBI was up +0.10%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.15 point or -0.97% at 15.27

 

Wednesday’s Closing Down (10 of 15):

  • Blueprint Medicine (BPMC -$3.99 after Tuesday’s +$0.99 after Friday’s +$2.69
  • Vericel (VCEL -$1.37 after Tuesday’s +$0.30 after Friday’s -$0.17),
  • Ionis Pharmaceuticals (IONS -$0.82),
  • Intellia Therapeutics (NTLA -$0.27 after Tuesday’s -$0.59 after Friday’s -$0.73),
  • Fate Therapeutics (FATE -$0.23),
  • Regenxbio (RGNX -$0.14 after Tuesday’s -$0.29 after Friday’s +$0.38),
  • BioLife Solutions (BLFS -$0.09),
  • Solid Biosciences (SLDB -$0.06 after Tuesday’s +$0.08 and Friday’s +$0.19
  • Compass Therapeutics (CMPX -$0.05),
  • Brainstorm Cell Therapeutics (BCLI -$0.049),

Wednesday’s Closing Up (10 of 18):

  • Alnylam Pharmaceuticals (ALNY +$5.05 after Tuesday’s +$2.69 and Friday’s -$0.43
  • CRISPR Therapeutics (CRSP +$3.68 after Tuesday’s -$3.49 and Friday’s -$2.26),
  • Prime Medicine (PRME +$0.46 after Tuesday’s -$0.43 and Friday’s +$0.66),
  • Ultragenyx Pharmaceuticals (RARE +$0.31 after Tuesday’s -$1.05 and Friday’s +$2.66),
  • Cellectis SA (CLLS +$0.13),
  • Voyager Therapeutics (VYGR after Tuesday’s +$0.02),
  • Verve Therapeutics (VERV +$0.07),
  • Editas Medicine (EDIT +$0.06 after Tuesday’s -$0.20 and Friday’s -$0.16),
  • Generation Bio (GBIO +$0.06),
  • Sangamo Therapeutics (SGMO +$0.055 after Tuesday’s -$0.20 after Friday’s +$0.33),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • Precigen (PGEN)  

 

Q1/24 – February

  • Wednesday closed positive with 18 incliners, 15 decliners and 2 flats

 

The BOTTOM LINE: The cell and gene therapy sector cleared the bar barely in the high jump on Wednesday following Tuesday’s negative close after Monday’s holiday post a negative close on last Friday.

Earnings, net losses, and per-share losses, runways and guidance have begun Q4 and FY23 which WILL be crucial to continue downside force in the sector as history has taught us i.e., investors.

 

Quotes to ponder:  extrapolations …

“The market is more discerning and increasingly voracious.” < LPL Financial’s chief global strategist Quincy Krosby>

From yesterday,” no matter what they say, the traders are going to lock in profits, the asset managers are going to peel off a piece of their core position and lock in some profits and some of that is even happening today ahead of the number tomorrow.” <Ken Polcari, Kace Capital>

“In the current market fragility risks are high due to the pressure to chase momentum and fickle liquidity. But slides in volatility … also shows the market is “far” from an asset bubble, as volatility typically rises with prices in that situation.”

Market may be nearing fragility event, but not asset bubble: BofA … With depressed volatility and correlation likely owning options directionally, which aren’t fully pricing the future drift of markets in either direction. <Vittoria Volta, B of A>

I ALSO reiterate, “Don't chase the cell and gene therapy sector, especially with the Nasdaq extended.”

Short and non-sweet: SELL into STRENGTH – accumulate some “powder” i.e., cash!

 

Beam Therapeutics (BEAM) … earnings’ whisper

  • Beam Therapeutics Inc. (BEAM) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023.
  • Expected to post quarterly loss of $1.15 per share in its upcoming report, which represents a year-over-year change of -113%.
  • Revenues are expected to be $16.92 million, down 15.6% from the year-ago quarter.
  • Earnings ESP of -3.99%.

Vericel (VCEL) … earnings whisper

  • Vericel Corporation (VCEL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023.
  • Expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +50%.
  • Revenues are expected to be $65 million, up 23.4% from the year-ago quarter. <ZACKS>

Intellia Therapeutics (NTLA) … earnings whispers

  • Expects a year-over-year decline in earnings on higher revenues when Intellia Therapeutics, Inc. (NTLA) reports results for the quarter ended December 2023.
  • NTLA is expected to post quarterly loss of $1.47 per share in its upcoming report, which represents a year-over-year change of -5%.
  • Revenues are expected to be $15.1 million, up 11.3% from the year-ago quarter. <ZACKS>

 

The Harvard Apparatus RN (HRGN) formerly the Biostage (BSTG) Chronicles:

Shows how the “pimp/pump and promote” works …

  • Wednesday close down -$0.02 with 1,106 shares traded,
  • Tuesday closed up +$0.24 with 24,963 shares traded <3-month average = 1,545 shares> WOW, if this doesn’t prove my point – nothing will!!
  • Monday was market holiday
  • closed Friday +$0.16 with 3,109 shares traded
  • Thursday’s down -$0.17 with 1,200 shares traded
  • Wednesday’s flat +$0.00 with 1,300 shares traded,
  • Tuesday’s down -$0.53 with 2,000 shares traded
  • The previous Monday’s down -$0.02 with 5,900 shares traded <3-month average = 1,390 shares)

Did you notice how it barely trades unless volume is “pumped” – is it by DST Capital, run by the president of HRGN’s Hong Yu and neighbor, Mrs. Mrs. bin Zhao of Weston, Mass.

  • Funded by Lui Dong Hai, chairman of Dixintong Technology Group (D. Phone, the largest smartphone retailer in China) the husband of Mrs. bin Zhao??

This question needs to be answered as the NEED to desperately finance by private placement – past Chinese investors must be feeling … WHAT?

  • Making promises to Chinese investors, management can't keep isn't a real strategy, especially when you're asking/raising money to continue operations as HRGN was Out-of-Cash 1/2/24!

Did you read Tuesday’s a.m. post: Harvard Apparatus GT (HRGN) desperately finances with $500 K bridge loan (2/1) from Chairman & CEO He; it’s very telling rejection by U.S. investors and capital markets and antipathy of past Chinese investors which have NOT stepped-up (again) while officer sees WHAT hope in own money? At the least the “public shell” has value.  Interesting the covenants included certain definitions of “Act of Bankruptcy”? <8-K>

Also, WHY CEO Jerry He hasn’t “addressed disclosure in past 10-K, that HRGN formerly BSTG has “identified material weaknesses in our internal control over (their) financial reporting” including the issues of their INABILITY to confirm their “lost” invoicing, past liabilities and payables as well as their PONZI use of DST Capital to promote and pump their share pricing? Were they payments “lost” for consultants and others who facilitated IND filing??

 

The top three (3) performing in the session:

  • Wednesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Prime Medicine (PRME)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and uniQure NV (QURE)
  • Monday: a market holiday
  • Friday: Blueprint Medicine (BLMC), Ultragenyx Pharmaceuticals (RARE) and Prime Medicine (PRME)

The worst three (3) in the session:  

  • Wednesday: Blueprint Medicine (BLMC), Vericel (VCEL) and Ionis Pharmaceuticals (IONS)
  • Tuesday: CRISPR Therapeutics (CRSP), Beam Therapeutics (BEAM) and Sage Therapeutics (SAGE)
  • Monday was a market holiday,
  • Friday: CRISPR Therapeutics (CRSP), Sage Therapeutics (SAGE) and Ionis Pharmaceuticals (IONS)

 

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 its 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.