February 27, 2024 4:36pm

Earnings: Beam Therapeutics (BEAM), Verve Therapeutics (VERV) and Regenxbio (RGNX) <in Bottom Line>

BEAM rockets +$9.27 or +25.89% to $45.07 as enthusiasm grows for its next-generation form of gene editing after Q4/23 net income/FY23 net loss come out <continued below>

Pre-open Indications: 2 Hits and 2 Miss

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One can take a good or bad feeling, re-frame it, and suddenly that feeling is the solution. Not me, I don’t run from any feeling but, take that sensation itself as a sharpened stick to “poke’ mainstream thinking.

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! 

 

Tuesday: The Dow closed DOWN -96.82 points or -0.25%, the S&P closed UP +8.65 points +0.17% while the Nasdaq closed UP +59.05 points or +0.37%

 

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 …

Indexes were mixed as the market rally took another breather, with investors looking ahead to key inflation data slated for release later this week.

Economic Data Docket: Data from the U.S. Department of Commerce showed that orders for long-lasting goods declined more than expected in January, with the leading factor being a large drop in demand for transportation.

  • The latest consumer confidence numbers also fell on worries regarding a potential labor market slowdown and polarized political landscape, according to a Conference Board gauge released Tuesday. The board’s Consumer Confidence Index declined to 106.7, which was lower than the downwardly revised 110.9 in January and below the Dow Jones estimate for 115.1. <CNBC>

 

From the title re Beam Therapeutics (BEAM), as to “2024 appears to be a busy year for BEAM with the potential initiation of two new clinical programs in 2024 and data for BEAM-101 later this year." <David Nierengarten, Wedbush>.

  • Beam plans to begin testing its own conditioning regimen that could be easier on patients. BEAM is also hoping to start studies in a liver disease known as alpha-1 antitrypsin deficiency, and a rare disease called glycogen storage disease 1a. In the latter condition, glycogen builds up on organs and tissues, causing systemic problems. Both of these will be in vivo gene-editing drugs, <stock analyst Sami Corwin, of William Blair>.

 

Pre-open Indication: 2 Hits < Beam Therapeutics (BEAM +$9.27) Sell into Strength - Blueprint Medicine (BPMC +$4.74), > 2 MISS <Fate Therapeutics (FATE +$0.51), Vericel (VCEL -$0.08)>

 

Monday’s RegMed Investors’ (RMi) closing bell: “Has the sector had gotten way out over its skis? Trading sentiment seems skimpy; it’s about refining expectation and defining insight.” …  https://www.regmedinvestors.com/articles/13346

 

Advance/Decline (A/D) Line:

  • Tuesday’s advance/decline line at the open was positive with 28 incliner, 5 decliners and 2 flats; ending with a positive close of 31 incliners, 3 decliners and 1 flat

 

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

Q1/24: February, 1 holiday, 7 negative and 11 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 up +1.24% and the XBI was up +5.74%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -0.30 point or -2.18% at 13.44

 

Tuesday’s Closing Down (4 of 4):

  • BioLife Solutions (BLFS -$0.49),
  • Compass Therapeutics (CMPX -$0.14),
  • Vericel (VCEL -$0.08 after Monday’s +$0.76),
  • Harvard Apparatus RT (HRGN -$0.01 after Monday’s -$0.09 after Friday’s +$0.06),

Flat (1):

  • Cellectis SA (CLLS)

Tuesday’s Closing Up (10 of 31):

  • Beam Therapeutics (BEAM +$9.27 after Monday’s +$1.81 after Friday’s +$0.45),
  • Blueprint Medicine (BPMC +$4.74 after Monday’s +$5.56 after Friday’s +$3.49
  • Ultragenyx Pharmaceuticals (RARE +$3.41 after Monday’s +$0.77 after Friday’s +$0.60),
  • Intellia Therapeutics (NTLA +$3.36 after Monday’s +$1.56 after Friday’s -$1.08),
  • Verve Therapeutics (VERV +$3.10 after Monday’s +$0.99 after Friday’s +$0.13),
  • CRISPR Therapeutics (CRSP +$3.06 after Monday’s +$2.07 after Friday’s -$2.20),
  • Regenxbio (RGNX +$1.68 after Monday’s +$0.93 after Friday’s -$0.76),
  • Ionis Pharmaceuticals (IONS +$1.31 after Monday’s +$0.74 after Friday’s +$1.38),
  • Caribou Biosciences (CRBU +$0.84),
  • Editas Medicine (EDIT +$0.80)

 

Q1/24 – February

  • Tuesday closed positive with 31 incliners, 3 decliners and 1 flat

 

The BOTTOM LINE: The cell and gene therapy sector closed positive again on Tuesday after Monday positive close following after Friday’s positive close after Thursday and Wednesday’s barely positive following last Tuesday’s negative close

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.

 

I have seen 2 net income for the Q4/23 CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM) (but each had a FY23 loss)

11 have reported … Tuesday -BEAM, VERV, RGNX; Monday -FATE; last week -NTLA, CRSP, IONS, SAGE, RARE, BPMC and ALNY.

 

This week coming: Wednesday – MDXG, EDIT, VYGR and Thursday - BLFS

•              RegMed Investors (RMi) - Q4/23 & FY23 Cell and Gene Therapy Earnings Scorecard Results https://www.regmedinvestors.com/articles/11628

 

Earnings - today:

Beam Therapeutics (BEAM)

  • Q4/23 net income +$142.8 M or +$1.77 per share of and FY23 net loss of -$132.5 M or -$1.72 per share
  • Cash position: $1.2 B and runway until early 2027

Verve Therapeutics (VERV):

  • Q4/23 net loss of -$48.4 M or -$0.69 per share of and FY23 net loss of -$200.1 M or -$3.12 per share
  • Cash position: $624 M and runway until early 2026

Regenxbio (RGNX)

  • Q4/23 net loss of -$62.9 M or -$1.43 per share of and FY23 net loss of -$263.5 M or -$6.02 per share
  • Cash position: $314 M and runway until Q2/2025

 

 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!

 

A quote to ponder, “The market on Tuesday “really doesn’t have a lot of direction. Different sectors “are each marching to the beat of the drummer. What’s causing tech, consumer discretionary, communication services and financial stocks to do better is that they tend to do well in a interest rate pause period. Also, that’s where the growth is; and so, I think until the Fed starts to cut interest rates, investors are not going to dramatically diversify into mid- and small-cap stocks — they really want to wait and see.” <Sam Stovall, chief investment strategist at CFRA Research>

 

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>

 

The top three (3) performing in the session:

  • Tuesday: Beam Therapeutics (BEAM), Blueprint Medicine (BLMC) and Ultragenyx Pharmaceuticals (RARE)
  • Monday: Blueprint Medicine (BLMC), CRISPR Therapeutics (CRSP) and Beam Therapeutics (BEAM)

The worst three (3) in the session:  

  • Tuesday: BioLife Solutions (BLFS), Compass Therapeutics (CMPX) and Vericel (VCEL)
  • Monday: Solid Biosciences (SLDB), Cellectis SA (CLLS) and Harvard Apparatus RT (HRGN)

 

The Harvard Apparatus RT (OTC QB HRGN) formerly the Biostage (BSTG) Chronicles: shows how the “pimp/pump and promote” works …my treatise is VALIDATED!

  • Tuesday dropped -$0.01 with 1,314 shares traded,
  • (2/26) Monday closed down -$0.09 with 350 shares traded
  • Friday closed up +$0.0625 with 8,114 shares traded <aver 3-mo = 2,186>
  • Thursday closed up +$0.0075 with 15,907 shares traded
  • 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!!

Did you notice how it barely trades unless volume is being “pumped.”  This question needs to be answered as HRGN is desperate to finance by any means as past Chinese private placement investors must be feeling … WHAT … TAKEN to the cleaners?

 

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.