April 23, 2020 6:01pm

Stocks “racked” by Gilead Sciences’ (GILD) as virus treatment purportedly disappoints in clinical trial

Another public shaming due: AxoGen (AXGN +$0.09) after receiving $7.8 million from the Paycheck Protection Program (PPP) as Q1 revenues popped to $24.3 million, an increase of approximately 4% over Q1/19 and $96.51 million in cash (Q4’s numbers); called an emergency need,  just because you RIF’ed – 10% of employees - GIVE IT BACK - lousy PR and BAD optics, SHAME on this CEO joining Athersys’ (ATHX) rip-off of Americans

Financing: Caladrius Biosciences (CLBS -$0.09 to $2.16) entered into a Registered Direct (at-the-market) offering of 2,162,166 shares at a purchase price of $2.3125 per share with 1.08 million unregistered warrant, another H.C. Wainright & Co deal

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The Dow closed UP +38.44 points (+0.17%), the S&P closed DOWN -1.51 points (-0.05%) while the NASDAQ closed DOWN -0.63 points (-0.01%)

 

Henry’omics:

A wild ride for markets after a negative report finding a treatment for the coronavirus was inconclusive.

  • World Health Organization leaked a report of findings from a clinical trial in China;
  • Gilead Sciences (GILD) took issue with the report, saying: “Because this study was terminated early due to low enrollment, it was underpowered to enable statistically meaningful conclusions. As such, the study results are inconclusive, though trends in the data suggest a potential benefit for remdesivir, particularly among patients treated early in disease.”

Thursday’s volume was THIN as 5 of the 16-upside had higher than the 3-month average volume and only 4 of the 19-downside had higher than the 3-month average volume;

A positive “bling” in this market, Caladrius Biosciences (CLBS -$0.09) has entered into a Registered Direct (at-the-market) offering of 2,162,166 shares at a purchase price of $2.3125 per share. CLBS has also agreed to issue to the investors unregistered warrants to purchase up to an aggregate of 1,081,083 shares of common stock. The closing of the offering is expected to occur on or about April 27, 2020.

Today’s share pricing measurement tool: 18 months of cash

H.C. Wainwright reiterates an upbeat “view” of Pluristem (PSTI) – is an offering being prepared?

What was driving today’s flushing of value: conflicting virus treatment reports, ugly earnings, unemployment/jobless claim numbers and the usual unknows and sentiment hurdles, although oil prices were stabilizing as we end up where – NOWHERE!

For the week so far, the Dow is off 3%, the S&P 500 is down -2.7% and the Nasdaq is down -1.8%.

 

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

  • Thursday, the IBB closed down -0.31% and XBI also closed down -0.05%
  • Wednesday, the IBB closed up +0.95% and XBI also closed up +1.91%
  • Tuesday, the IBB closed down -3.03% and XBI also closed down -3.04%
  • Monday, the IBB closed up +1.29% and XBI also closed up +3.72%

 

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.60 points or -1.43% at 41.38,
  • Wednesday was down -3.40 points or -7.49% at 42.01,
  • Tuesday was up +1.58 points or +3.60% at 45.41,
  • Monday was up +5.21 points or +13.79% at 43.41,

 

RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Thursday opened positive at 30/5, stayed positive at the mid-day at 23/10 and 2 flats to close negative at 15/19;
  • Wednesday opened positive at 30/10, stayed positive at the mid-day at 30/5 and closed positive at 30/5;
  • Tuesday opened negative at 4/30 and 1 flat, stayed negative at the mid-day at 3/32 and closed negative at 3/32;
  • Monday opened negative at 15/18 and 2 flats, stayed positive at the mid-day at 29/6 and closed positive at 30/10;

 

Thursday’s (top 10) incliners:

  • ReNeuron (RENE.L +$5.00 after Wednesday’s +$1.00, Tuesday’s -$7.00 and Monday’s -$10.50);
  • Ionis Pharmaceuticals (IONS +$2.29 after Wednesday’s +$1.29 and Tuesday’s -$2.16);
  • Alnylam Pharmaceuticals (ALNY +$1.53 after Wednesday’s+$2.26, Tuesday’s -$7.02 and Monday’s +$6.39);
  • Pluristem (PSTI +$1.37 after Wednesday’s -$0.20, Tuesday’s +$0.50 and Monday’s +$0.25);
  • Regenxbio (RGNX +$0.88 after Wednesday’s +$1.80);
  • Sage Therapeutics (SAGE +$0.67 after Wednesday’s +$1.36);
  • uniQure NV (QURE +$0.57 after Wednesday’s -$0.67);
  • Vericel (VCEL +$0.43);
  • Precision (PGEN +$0.40);
  • Fate Therapeutics (FATE +$0.39 after Wednesday’s -$0.03);

Thursday’s (bottom 10) decliners:

  • bluebird bio (BLUE -$1.67);
  • Bellicum Pharmaceuticals (BLCM -$0.66 after Wednesday’s +$0.80);
  • Global Blood Therapeutics (GBT -$0.56 after Wednesday’s -$0.37);
  • Biostage (BSTG -$0.40);
  • Cellectis SA (CLLS -$0.34);
  • Homology Medicine (FIXX -$0.32);
  • Editas Medicine (EDIT -$0.27);
  • Verastem (VSTM -$0.21);
  • Sangamo therapeutics (SGMO -$0.200;
  • Voyager therapeutics (VWGR -$0.16);

 

Today’s stand-out moves: a few to mention, not all …

  • Green upside equities were lit up: RENE. L, IONS, ALNY, SAGE and RGNX to mention a few …
  • Stepping up after Wednesday’s downside - Pluristem (PSTI) – expect a financing (?);
  • Back to the upside - FATE, PGEN, QURE, 
  • The rotation dived to 19 from 29 advancing equities from 32 declining equities;
  • Dropping were - BLUE, CLLS, FIXX, EDIT, VSTM, SGMO and VYGR;
  • 2nd dive to downside - GBT;
  • Hop-scotching – Biostage (BSTG) closed down after being up after Tuesday’s down after Monday’s up with low volume after Friday closing down post twice (2x) being flat following closing positive 3 times versus 7 negative closes in the last seventeen (17) sessions since April 1st;
  • Dropping from the upside - BLCM.

 

Percentage (%) movement/range statistics: look closely …

  • Thursday’s % of the 16-upside were +0.06% (RARE) to +15.24% (PSTI) while the 19-downside ranged from -0.15% (MESO) to -11.43% (BSTG);  
  • Wednesday’s % of the 29-upside were +0.34% (ADRO) to +16.67% (BSTG) while the 6-downside ranged from -0.10% (FATE) to -3.02% (SLDB); 
  • Tuesday’s % of the 3-upside were +0.76% (BLFS) to +5.75% (PSTI) while the 32-downside ranged from -0.38% (GBT) to -14.29% (BSTG); 
  • Monday’s % of the 30-upside were +0.32% to +22.01% (VSTM) while the 10-downside ranged from -1.23% (AGTC) to -7.05% (RENE.L); 

 

Sentiment and its indicators:

  • The Chinese trial for Gilead’s antiviral drug remdesivir produced results that did not give meaningful conclusions on its efficacy due to low enrollment population;
  • Unemployment claims report, which showed that millions more individuals filed for unemployment benefits last week totaling 4.427 million for the week. Since mid-March, new unemployment claims ballooned to more than 26 million;
  • A rebound in oil pricing as West Texas Intermediate (WTI) futures for June delivery jumped 19.7% to settle at $16.50 per barrel as traders increased bets on U.S. production cuts.

Defining pandemic disruption: The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …

  • Thursday’s 854,400
  • Wednesday’s 830,700;
  • Tuesday’s 788,900,
  • Monday’s 766,600,

Thursday’s death rate escalated to 47,178 from Wednesday’s 45,638, Tuesday’s 42,485, and last Monday’s 40,931 <John Hopkins University>

 

Upside volume stats: 

  • Thursday: 5 out of the 16-upside had higher than the 3-month average volume;
  • Wednesday: 6 out of the 29-upside had higher than the 3-month average volume;
  • Tuesday: 1 out of the 3-upside had higher than the 3-month average volume;
  • Monday: 16 out of the 30-upside had higher than the 3-month average volume;

Downside volume stats:

  • Thursday: 4 out of the 19-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 6-downside had higher than the 3-month average volume;
  • Tuesday: 11 out of the 32-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 10-downside had higher than the 3-month average volume;

 

April

Thursday closed negative with 19 decliners, 16 advancer and 0 flat

Wednesday closed positive with 6 decliners, 29 advancer and 0 flat

Tuesday closed negative with 32 decliners, 3 advancer and 0 flat

Monday closed positive with 10 decliners, 30 advancer and 0 flat

Friday closed positive with 6 decliners, 29 advancer and 0 flat

Thursday closed negative with 20 decliners, 14 advancer and 1 flat

Wednesday closed negative with 29 decliners, 6 advancer and 0 flats

Tuesday closed positive with 4 decliners, 31 advancer and 0 flats

Monday closed negative with 19 decliners, 16 advancer and 0 flats

Friday was a market holiday

Thursday closed positive with 7 decliners, 28 advancer and 0 flat

Wednesday closed positive with 4 decliners, 30 advancer and 1 flat

Tuesday closed negative with 18 decliners, 17 advancer and 0 flats

Monday closed positive with 2 decliners, 33 advancer and 0 flats

Friday closed negative with 23 decliners, 12 advancer and 0 flats

Thursday closed positive with 10 decliners, 23 advancer and 2 flats

Wednesday (4/1) closed negative with 31 decliners, 4 advancer and 0 flat

 

The BOTTOM LINE:  The Chinese trial for Gilead’s antiviral drug remdesivir produced results that did NOT give meaningful conclusions on its efficacy citing World Health Organization documents leaked (accidentally released). Anecdotal data on remdesivir’s effectiveness in treating patients with COVID-19 in Chicago had sent stocks on a tear.

We are in a black box of trading as Thursday closed negative, Wednesday closed positive, Tuesday closed negative, Monday closed positive and last Friday closed positive as traders speculate with fundamental investing being burned.

Retrace, retrace and navigate the uncertainty; no wonder I stated in the a.m. post, “the dice were ice cold” and let your portfolio “roll” in the big casino.

 

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.