February 20, 2024 4:45pm

News: Voyager Therapeutics (VYGR +$0.02) announced new data from its two preclinical programs targeting pathological tau for the treatment of Alzheimer’s disease.

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A 360-degree review of the who, why, when and what happened in the sector as the market and economics surround your portfolio defense. The Bottom Line includes earnings “whispers”!

Never leave an investor uninformed! A trusted source of factual reporting!

Today is the perfect 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 send equities seesawing back and forth.

 

Tuesday: The Dow closed DOWN -64.19 points or -0.17%, the S&P closed DOWN -30.06 points -0.60% while the Nasdaq closed DOWN -144.87 points or -0.92%

 

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 …

Tuesday indexes were deflated kicking-off the shortened trading week after U.S. markets were closed Monday in observance of the birthday of George Washington.

Economic Data Docket: The Conference Board’s Leading Economic Index dropped 0.4% in January, more than expected, as hours worked fell and the spread between bond yields widened, the organization reported Tuesday. Though the decline was more than the 0.3% estimate from Dow Jones, the board noted that six of the 10 data points used in the index were positive for the month, an important benchmark for a metric that long had been flagging an economic contraction.

 

Tuesday’s RegMed Investors’ (RMi) pre-open: “navigating the uncertain inflation economic derivative financial markets. After a roller-coaster week, does it continue?” …  https://www.regmedinvestors.com/articles/13336

 

Advance/Decline (A/D) Line:

Tuesday’s advance/decline line at the open was negative with 16 incliner, 19 decliners and 0 flats; ending with a negative close of 10 incliners, 24 decliners and 1 flat

Monday was a market holiday

 

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

Q1/24: February, 1 holiday, 5 negative and 8 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:

  • Tuesday, the IBB was down -0.63% and the XBI was down -0.83%
  • Monday was a market holiday

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.64 point or +4.35% at 15.35
  • Monday was a market holiday

 

Tuesday’s Closing Down (10 of 24):

  • CRISPR Therapeutics (CRSP -$3.49 after Friday’s -$2.26),
  • Beam Therapeutics (BEAM -$1.10),
  • Sage Therapeutics (SAGE -$1.10 after Friday’s -$2.14),
  • Ultragenyx Pharmaceuticals (RARE -$1.05 after Friday’s +$2.66),
  • Intellia Therapeutics (NTLA -$0.59 after Friday’s -$0.73),
  • Prime Medicine (PRME -$0.43 after Friday’s +$0.66),
  • Regenxbio (RGNX -$0.29 after Friday’s +$0.38),
  • Sangamo Therapeutics (SGMO -$0.20 after Friday’s +$0.33),
  • Editas Medicine (EDIT -$0.20 after Friday’s -$0.16),

Tuesday’s Closing Up (10 of 10):

  • Alnylam Pharmaceuticals (ALNY +$2.69 after Friday’s -$0.43
  • Blueprint Medicine (BPMC +$0.99 after Friday’s +$2.69
  • uniQure NV (QURE +$0.40 after Friday’s +$0.37),
  • Vericel (VCEL +$0.30 after Friday’s -$0.17),
  • Harvard Apparatus GT (HRGN +$0.24 after Friday’s +$0.16),
  • bluebird bio (BLUE +$0.08),
  • Solid Biosciences (SLDB +$0.08 after Friday’s+$0.19
  • Homology Medicine (FIXX +$0.0238),
  • Voyager Therapeutics (VYGR +$0.02),
  • Agenus (AGEN +$0.0133)

Flat (1):

Precigen (PGEN)

 

Q1/24 – February

  • Tuesday closed negative with 10 incliners, 24 decliners and 1 flat
  • (2/19) Monday was a market holiday

 

The BOTTOM LINE: The cell and gene therapy sector fell on Tuesday after Monday’s holiday after falling on 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.

 

A quote to ponder: “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>

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>

CRISPR Therapeutics AG (CRSP) … earnings’ whispers

  • is expected to deliver a year-over-year increase ….
  • In earnings on higher revenues when it reports results for the quarter ended December 2023.
  • Revenues are expected to be $138.09 million, up 1380800% from the year-ago quarter.
  • For the last reported quarter, it was expected that CRISPR Therapeutics AG would post a loss of $1.98 per share when it actually produced a loss of $1.41, delivering a surprise of +28.79%. <ZACKS>

Ionis Pharmaceuticals (IONS) … earnings whispers

  • Expected to post quarterly loss of $0.78 per share in its upcoming report, which represents a year-over-year change of -110.8%.
  • Revenues are expected to be $183.6 million, up 20.8% from the year-ago quarter.
  • The consensus EPS estimate for the quarter has been revised 12.59% lower over the last 30 days to the current level.
  • For the last reported quarter, it was expected that Ionis Pharmaceuticals would post a loss of $1.01 per share when it actually produced a loss of $1.03, delivering a surprise of -1.98%.
  • Over the last four quarters, the company has beaten consensus EPS estimates three times. <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 …

  • 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 this 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>

 

The top three (3) performing in the session:

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

The worst three (3) in the session:  

  • 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.