January 26, 2024 4:51pm

There are headwinds bundled with upcoming earnings LPS (loss-per-share) reporting adding to investor agita

News: Ultragenyx Pharmaceutical (RARE -0.17) announced that all patients have been dosed with UX701 across the 3-dose-escalation cohorts in Stage 1 of its pivotal P1/2/3 Cyprus2+ study. RARE’s investigational AAV9 gene therapy is designed to deliver stable expression of the ATP7B copper transporter following a single intravenous infusion, with the goal of normalizing copper metabolism in patients with Wilson disease.

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The week in review

 

With a NO slight sigh of relief, I answer or qualify the sector’s equity’s movement; with an emphasis on which company is gaining or losing stride in their portfolio for the short-term

Join me … in the NO spin zone. If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi provides the extenuating factors of share pricing.

 

Friday: The Dow closed UP +60.30 points or +0.16%, the S&P closed DOWN -3.19 points -0.07% while the Nasdaq closed DOWN -55.13 points or -0.36%

Thursday: The Dow closed UP +242.74 points or +0.64%, the S&P closed UP +25.61 points +0.53% while the Nasdaq closed UP +28.58 points or +0.18%

Wednesday: The Dow closed DOWN -99.06 points or -0.26%, the S&P closed UP +3.95 points +0.08% while the Nasdaq closed UP +55.97 points or +0.36%

Tuesday: The Dow closed DOWN -90.36 points or -0.25%, the S&P closed UP +14.17 points +0.29% while the Nasdaq closed UP +65.66 points or +0.43%

Monday: The Dow closed UP +138.01 points or +0.36%, the S&P closed UP +10.62 points +0.22% while the Nasdaq closed UP +49.32 points or +0.32%

 

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 closed mixed, despite Friday’s muted moves, the major averages recorded a winning week

For the week, the Dow gained +0.07%, while the Nasdaq advanced +0.09% and S&P popped +1.1%.

Economic Data Docket: The core personal consumption expenditures price index for December, an important gauge for the Federal Reserve, increased 0.2% on the month and was up 2.9% on a yearly basis. Including volatile food and energy costs, headline inflation also rose 0.2% for the month and held steady at 2.6% annually. Consumer spending increased 0.7%, stronger than the 0.5% estimate. Personal income growth edged lower to 0.3%, in line with the forecast.

  • Pending U.S. home sales shot up in December by the most since June 2020, indicating prospective buyers may be getting drawn from the sidelines by stabilizing mortgage rates.

 

Friday’s RegMed Investors’ (RMi) pre-open: “sector - talk to me of positive catalysts. Risk is a four letter swear word. Reduce overall exposure slightly, a pre-emptive measure before potential technical headwinds and earnings uncertainty.” …  https://www.regmedinvestors.com/articles/13301

 

Advance/Decline (A/D) Line:

  • Friday’s advance/line lines at the open was negative with 12 incliners, 21 decliners and 2 flats; ending with a negative close of 11 incliners, 21 decliners and 3 flats
  • Thursday’s advance/line lines at the open was positive with 28 incliners, 6 decliners and 1 flat; ending with a positive close of 23 incliners, 11 decliners and 1 flat
  • Wednesday’s advance/line lines at the open was negative with 12 incliners, 20 decliners and 3 flats; ending with a negative close of 4 incliners, 31 decliners and 0 flat
  • Tuesday’s advance/line lines at the open was positive with 23 incliners, 10 decliners and 2 flats; ending with a positive close of 21 incliners, 13 decliners and 1 flat
  • Monday’s advance/line lines at the open was positive with 29 incliners, 5 decliners and a flat; ending with a positive close of 28 incliners, 7 decliners and 0 flat

 

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

Q1/24: 2 holiday, 10 negative and 7 positive closes

 

Key Metrics:

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

  • Friday, the IBB was down -0.25% and the XBI was down -0.37%
  • Thursday, the IBB was up +0.66% and the XBI was up +0.89%
  • Wednesday, the IBB was down -1.14% and the XBI was down 1.68%
  • Tuesday, the IBB was up +0.55% and the XBI was up +0.25%
  • Monday, the IBB was up +0.33% and the XBI was up +2.27%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.15 point or -1.12% at 13.30
  • Thursday was up +0.31 point or +2.36% at 13.45
  • Wednesday was up +0.52 point or +4.14% at 13.07
  • Tuesday was down -0.64 point or -4.85% at 12.55
  • Monday was down -0.09 point or -0.68% at 13.21

 

Friday’s Closing Down (10 of 21):

  • Alnylam Pharmaceuticals (ALNY -$4.31 and Thursday’s -$1.27),
  • CRISPR Therapeutics (CRSP -$1.85 after Thursday’s -$0.14 and Wednesday’s -$3.38)
  • Beam Therapeutics (BEAM -$0.63 after Thursday’s +$0.16),
  • Regenxbio (RGNX -$0.43 after Thursday’s -$0.73)
  • Editas Medicine (EDIT -$0.49 after Thursday’s -$0.26),
  • Intellia Therapeutics (NTLA -$0.41),
  • Verve Therapeutics (VERV -$0.31 after Thursday’s +0.39 and Wednesday’s -$0.71),
  • Ultragenyx Pharmaceuticals (RARE -$0.28 after Thursday’s +$1.54 and Wednesday’s -$0.87),
  • Prime Medicine (PRME -$0.15 after Thursday’s +$0.16),

Flat (1);

  • Harvard Apparatus GN (HRGN)
  • Fate Therapeutics (FATE)
  • Vericel (VCEL)

Friday’s Closing Up (11 of 11):

  • BioLife Solutions (BLFS +$0.33 after Thursday’s -$0.27),
  • Cellectis SA (CLLS +$0.18 after Thursday’s -$0.07),
  • Sage Therapeutics (SAGE +$0.09 after Thursday’s -$0.24),
  • Caribou Biosciences (CRBU +$0.09 after Thursday’s +$0.16),
  • uniQure NV (QURE +$0.07),
  • Homology Medicine (FIXX +$0.0654),
  • Agenus (AGEN +$0.0628),
  • Adverum Biotechnologies (ADVM +$0.0445 after Thursday’s -$0.014),
  • Mesoblast (MESO +$0.04),
  • AxoGen (AXGN +$0.02),
  • Brainstorm Cell Therapeutics (BCLI +$0.0068 after Thursday’s -$0.0158 and Wednesday’s +$0.0050),

 

Q1/24 – January to date ...

  • Friday closed negative with 11 incliners, 21 decliners and 3 flats
  • Thursday closed positive with 23 incliners, 11 decliners and 1 flat
  • Wednesday closed negative with 4 incliners, 31 decliners and 0 flat
  • Tuesday closed positive with 21 incliners, 13 decliners and 1 flat
  • (1/22) Monday closed positive with 28 incliners, 7 decliners and 0 flat

 

The BOTTOM LINE… “if one watches the flow, the numbers and understanding the old Abbot & Costello monologue: Who’s on first, what’s on second and I don’t know who is on third – that’s what I want to find out!”

Reiterating … again, “the cell and gene therapy sector has “recalibrated” its expectations and I don't think this … adjustment is completely over.”

Earnings and guidance are DUE and going to be crucial to continue driving force in the sector.

Today’s business news affecting “our” universe: Reuter’s

  • Oil on track for second consecutive weekly gain
  • In Treasuries, trading was volatile after the data but most recently the yield on benchmark 10-year Treasury notes was up to 4.1624% from its U.S. close of 4.132% on Thursday.
  • The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 4.3551% compared with a U.S. close of 4.314%.
  • The personal consumption expenditures (PCE) price index increased 0.2% last month after an unrevised 0.1% drop in November.
  • In the 12 months through December, the PCE price index increased 2.6%, matching November's unrevised gain.

The top three (3) performing in the session:

  • Friday: BioLife Solutions (BLFS), Cellectis SA (CLLS) and Sage Therapeutics (SAGE) 
  • Thursday: Vericel (VCEL), Ultragenyx Pharmaceuticals (RARE) and Ionis Pharmaceuticals (IONS)
  • Wednesday: AxoGen (AXGN), Adverum Biotechnologies (ADVM) and Brainstorm Cell Therapeutics (BCLI)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) -2x and Ionis Pharmaceuticals (IONS)
  • Monday: CRISPR Therapeutics (CRSP), Vericel (VCEL) and Blueprint medicine (BLMC)

The worst three (3) in the session:  

  • Friday: Alnylam Pharmaceuticals (ALNY) – 3x, CRISPR Therapeutics (CRSP) and Beam therapeutics (BEAM)
  • Thursday: Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX) and BioLife Solutions (BLFS)
  • Wednesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), Ionis Pharmaceuticals (IONS) and Blueprint Medicine (BOMC)
  • Tuesday: Intellia Therapeutics (NTLA), Verve Therapeutics (VERV) and Vericel (VCEL)
  • Monday: Solid Biosciences (SLDB), Alnylam Pharmaceuticals (ALNY) and Mesoblast (MESO)

 

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.