April 13, 2020 8:52am

It’s about portfolio survival as well as our premier concern, personal health

News: Blackstone Group (BX. N) invested $2 billion in Alnylam Pharmaceuticals (ALNY) through an equity-and-debt deal, giving the drug maker a financial boost to develop its experimental therapies. Under the deal, Blackstone purchased 50% of the royalties on global sales of ALNY's cholesterol therapy” inclisiran”, currently under review by the U.S. FDA. Athersys (ATHX) up in the pre-open by +$0.47 or +16.15% to $3.38 (having closed -$0,06 or -2.02% to $2.91), after it received FDA authorization to start a P2/3 trial to assess safety and efficacy of its MultiStem therapy on patients with COVID-19-induced acute respiratory distress syndrome (ARDS). Pluristem Therapeutics (PSTI) has treated its first patient suffering from COVID-19 complications in the U.S under the U.S. FDA Single Patient Expanded Access Program, also called a compassionate use program,

What I provide is an “intelligence newspaper” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets. Check the BOTTOM LINE … <read more>

Dow future are DOWN -0.35% (-83 points), S&P futures are DOWN -0.34% (-10 points) and NASDAQ futures are DOWN -0.6 % (-30 points)

 

U.S. stock futures were lower on Monday morning after OPEC and other oil-producing countries reached a deal on a massive production cut, as markets continued to maneuver through the impact of the coronavirus.

  • Confirmed cases in the U.S. now total nearly 550,000, more than any other country in the world <Johns Hopkins University>. New York state accounts for more than 189,000 of those cases. The death count in the U.S. from the virus is more than 21,000.

European markets closed higher with the pan-European Stoxx 600 closing up by +1.4%.

  • The Bank of England agreed to temporarily finance U.K. government borrowing if funds cannot immediately be raised from debt markets while, Swiss banks UBS and Credit Suisse announced that they will postpone paying out part of their 2019 dividend to shareholders

Asia Pacific stocks fell as oil prices rose. The moves came after OPEC finalized an agreement to cut production by 9.7 million barrels per day — the single largest output cut in history.

  • Markets in Hong Kong and Australia were closed on Monday for the Easter Monday holiday.

 

Henry’omics:

No sighs of relief to breath here after minimal increase in percentage (%), a drop in transaction volume and softening of volatility with some healthy pricing moves – new targets for the price stripping algorithms.

The Dow posted its seventh (7th) best weekly performance, rallying 12.7%, while the S&P 500 had its biggest one-week gain since 1974, jumping 12.1%;

  • Still the major averages are down -17% below the records set in February;
  • So far for 2020, the Dow is down -16.9% and S&P 500 is down 13.7% while the Nasdaq has fallen over 9%;
  • Watch your corners…!

A quote to consider, “Considering the incredible scale of the Coronavirus Aid, Relief, Economic Security (CARES) Act, the Fed’s bond-buying and other efforts to help U.S. residents and businesses over the unprecedented economic shutdown; the value of the dollar has to be a concern of long-term investors.” < Dev Kantesaria of hedge fund Valley Forge Capital Management>

Such an increase in the money supply, unemployment and retail depreciation could mean an eventual problem with inflation and potential of a recession – “keep your powder dry” and available.

 

The BOTTOM LINE: Percentage (%) movement/range statistics; the patterns are up although down for the week. Persistent rotation of positive/negative closes over multiple weeks, no more than one up days in a row (two last week – Wednesday and Thursday), a drop in the in CBOE Volatility Index (VVIX: INDEX), lowering volume foretells a pricing “take-down strike” facilitated by a collapse in investor confidence?

  • Any good news will be the "tell all" for the week …

 

Thursday night’s title: “sell into the upside strength although volume is low; I see a bubble and it’s not from chewing gum; wait for, wait for it – pop!” < Friday markets were closed>

  • The NASDAQ closed UP +62.67 points (+0.77%);
  • The IBB closed up +0.91% and XBI also closed up +1.88%
  • The CBOE Volatility Index (VVIX: INDEX) Thursday was down -1.78 points or -4.11% at 41.54;
  • The % of the 28-upside were +2.51% (SLDB) to +18.49% (RENE.L) while the 11-downside ranged from -0.20% (BCLI) to -4.63% (QURE); 
  • 11 out of the 28-upside had higher than the 3-month average volume;
  • 4 out of the 7-downside had higher than the 3-month average volume;

Q2:

  • April registered 3 negative and 4 positive closes

Q1:

  • March registered 11 negative, 1 neutral and 10 positive closes
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

Companies in my headlights – It’s your decision; I provide an idea and context:

BUY on news: Alnylam Pharmaceuticals (ALNY) gained on Monday after Blackstone Group (BX. N) is invested to help it developing and bring to market a high-cholesterol drug treatment, among other drugs. Blackstone Life Sciences will provide ALNY with a term loan of up to $750 million and is buying $100 million worth of newly issued stock.

  • ALNY gained +$3.87 or +16.15% to $120.2 (after closing +$4.99 or +4.48% to $115.38)  pre-market trading on Monday after BX.N said it is investing a total of $2 billion - $1 billion to buy up to 10% of the future royalties of ALNY's high-cholesterol drug inclisiran, and up to $150 million in the development of two other drugs.

Athersys (ATHX) up in the pre-open by +$0.47 or +16.15% to $3.38 (having closed -$0,06 or -2.02% to $2.91), after it received FDA authorization to start a P2/3 trial to assess safety and efficacy of its MultiStem therapy on patients with COVID-19-induced acute respiratory distress syndrome (ARDS).

  • ATHX plans to open the first sites for recruitment of the study Q2/2020. ARDS is the leading cause of death among COVID-19 infected patients,

Pluristem Therapeutics (PSTI) is up +$1.08 or +15.49% to $8.05 after closing Thursday (+2.12 or +$43.71 to $6.97). I’d be ready (in the not so near timeframe for a proposed offering)

  • PSTI has treated its first patient suffering from COVID-19 complications in the United States under the U.S. Food and Drug Administration’s (FDA) Single Patient Expanded Access Program, also called a compassionate use program

 

 

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.