October 29, 2019 5:42pm

The cell and gene therapy sector suffers the tourist trade

Quarterly earnings: Verastem Oncology (VSTM) – beats LPS (loss-per-share) estimate by $0.08 and on revenue (+$1.48 M)

It's a daunting task to define risk parameters, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!  

 

The sector is what it is, until it isn’t and even then it doesn’t seem to be…

 

The Dow closed DOWN -19.30 points (-0.07%), the S&P closed DOWN -2.53 points (-0.08%) and the NASDAQ closed DOWN -49.13 points (-0.59%)

 

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

  • Tuesday the IBB closed up +0.46% while the XBI closed down -0.28%
  • Monday the IBB closed up +1.34% while the XBI closed up +1.39%
  • Friday the IBB closed down -0.15% while the XBI closed up +1.20%

 

The advance/decline line scenario of 45 covered companies:  

  • Tuesday the close was negative with an A/D line of 16/23, 3 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was positive with an A/D line of 27/12, 3 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Friday the close was positive with an A/D line of 30/11, 1 flat, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

Our universe of cell and gene therapy companies closed down on Tuesday as traders capitalized on yesterday’s “rush” to the upside.

The S&P 500 touched a fresh record high before closing just below the flat line as investors looked ahead to key Fed meeting which is expected to lower interest rates by 25 basis points.

Tuesday’s moves come a day after the S&P 500 posted its first record high since July 26, breaking above 3,027.98. Mixed sector earnings, improvements on the U.S.-China trade front pushed indexes to “dance” to the low side.

With a macro view, Merck’s (MRK) earnings beat expectations, boosted by immunotherapy drug Keytruda. Pfizer’s (PFE) profit also topped analyst estimates. Both stocks were up at least 2.5%.

 

Decliners:

  • ReNeuron (RENE.L -$4.00 after Monday’s -$7.50 and Friday’s -$8.00);
  • Ultragenyx (RARE -$2,57 after Monday’s +$1.13)
  • Sage Therapeutics (SAGE -$2.04 after Monday’s -$4.06 after Friday’s +$4.56, Thursday’s -$0.50, Wednesday’s +$2.58 and last Tuesday’s -$1.22);
  • Regenxbio (-$1.97);
  • Alnylam Pharmaceuticals (ALNY -$1.91);

Incliners:

  • CRISPER Therapeutics (CRSP +$4.07 after Monday’s +$5.00);
  • BioMarin Pharmaceuticals (BMRN +$2.20 after Monday’s +$0.96, Friday’s +$1.74, Thursday’s +$0.44, Wednesday’s +$1.28 and last Tuesday’s -$0.99);
  • AxoGen (AXGN +$0.73);
  • BioLife Solutions (BLFS +$0.28);
  • Cesca therapeutics (+$0.26);

 

 

The percentage (%) indicators: 

  • Tuesday’s range of the 16 upside was +0.21% (SGMO) to +9.07% (CRSP) while the 23 downside ranged from -0.37% (EDIT) to -6.11% (RARE);

 

  • Monday’s range of the 27 upside was +042% (ONCE) to +12.55% (CRSP) while the 12 downside ranged from -0.40% (MDXG) to -7.92% (KOOL -$0.37);

 

  • Friday’s range of the 30 upside was +0.07% (IONS) to +8.65% (ADVM) while the 11 downside ranged from -1.34% (AXGN) to -5.46% (RENE.L);

 

 

Upside volume stats:  to compare

  • Tuesday: 8 out of the 16 upside had higher than the 3 month average volume;
  • Monday: 8 out of the 27 upside had higher than the 3 month average volume;
  • Friday: 9 out of the 30 upside had higher than the 3 month average volume;

Downside volume stats:

  • Tuesday: 8 out of the 23 downside had higher than the 3 month average volume;
  • Monday: 3 out of the 12 downside had higher than the 3 month average volume;
  • Friday: 0 out of the 11 downside had higher than the 3 month average volume;

 

3 flat – BSTG, STML and ATHX with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche could be soon according to rumors from FTC by year’s end.

 

October’s sessions:

Tuesday closed NEGATIVE with 23 decliners; 16 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 12 decliners, 27 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 11 decliners, 30 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 27 decliners, 13 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 26 decliners, 16 advancers, 0 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 23 decliners, 16 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 13 decliners, 28 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 33 decliners, 7 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 25 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 19 decliners, 23 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 9 decliners, 32 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 13 decliners, 29 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 23 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 27 decliners, 12 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 38 decliners, 4 advancers, 1 flat and 1 reverse merged (HSGX), 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 25 decliners, 17 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 17 decliners, 24 advancers, 2 flats and 2 acquired (AST & OSIR);

Thursday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 22 decliners, 18 advancers, 3 flats and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 36 decliners, 5 advancers, 2 flat and 2 acquired (AST & OSIR);

 

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.