“Red Wednesday” Vista Partners Daily Market Recap 7/17/19

By John Heerdink LinkedIn

The markets were all in the red today.  Earnings reports continued to roll out with mixed messages as the bank sector (i.e JPMorgan (JPM), Wells Fargo (WFC), Citigroup (C) & Bank of America (BAC) have led the way but have been countered by the likes of CSX Corporation (CSX) which missed expectations pointing towards “a deteriorating global economic landscape for disappointing shipping volumes.” Also, further uncertainty around the US-China trade war situation seemed to gain a stronger hold as President Trump recently revealed that it still has a long way to go and he could still impose tariffs on an addtional $325B of Chinese goods.

The Dow gave back 115.78 points today closing down .42% closing at 27,219.85. The S&P 500 lost 19.26 points or .65% closing at 2984.42. The tech-heavy Nasdaq closed at 8,185.21 down .42% losing 37.59 points.The Russell 2000, the small-cap stock market index representing the bottom 2,000 stocks in the Russell 3000 Index lost a solid 11.22 points closing at 1,550.78 down .72%.

Volatility bets were on the same page as they moved significantly higher. The CBOE Volatility Index (VIX) closed lower at $13.97 up by 8.63% or $1.11/share. The 2x leveraged ETF TVIX also closed higher at $15.03 up 4.01% or $.58/share and traded between $14.07 and $15.03 today.

The US Dollar Index rose again today ending at 97.21 down .02%.

The 2-yr treasury yield ended at 1.83% down .03%  & the 10-year Treasury note closed down .06% at 2.06%.

 Oil prices continued yesterday’s decline falling another 1.4% to close at $56.78/bbl.  Dow 30 energy participants Chevron (CVX) moved lower by .50% closing at $124.14 & Exxon (XOM) closed lower by .59% closing at $75.48.

Gold closed lower at $1421.70/oz. Silver closed at $15.99/oz. Hecla Mining Company (HL) closed at $1.96 up 11.36%. First Majestic Silver (AG) closed at $9.31/share up 8.63%.

Financials/Money management

Institutional alternative asset manager Och-Ziff Capital Management Group (OZM) closed at $22.71/share down .83% or $.19/share closing off its newly minted 52-wk high of $25.49. The 52-wk range is $8.60 – $25.49. OZM sports a 4.37% cash dividend.

Los Angeles-based Colony Capital (CLNY) a leading global investment management firm with assets under management of $43 billion closed at $5.12 up .39% after hitting an intraday high of $5.15. CLNY pays an 8.58% cash dividend.

Healthcare

The healthcare sector moved higher today. The S&P 500 healthcare sector closed at 1066.60  up .02%.

INVO Bioscience, Inc. (IVOB) ended the day at $.3511/share as daily trading volume continues to rise in concert with their announcing progress after their exclusive U.S. partnership with Ferring Pharmaceuticals, a leader in the reproductive health industry was announced in Q1-2019. Ferring has committed to providing the necessary sales and marketing resources to more fully develop the market in the United States. There are countless couples not able to receive reproductive treatments today, and Ferring can be instrumental in addressing the unmet needs of this cohort. Ferring has the industry experience, relationships and the marketing capabilities to successfully embed the INVOcell in clinics throughout the country.  IVOB is a medical device company, headquartered in Sarasota, FL focused on creating simplified, lower-cost treatment options for patients diagnosed with infertility. The company’s lead product, the INVOcell, is a novel medical device used in infertility treatment that is FDA cleared and that enables egg fertilization and early embryo development in the woman’s vaginal cavity. IVOB also announced last week news of their recent appointment of Pressly Ahammed as the new Director of International Business Development and he will be responsible for the Company’s international distribution channels in Europe, Middle East, Africa & parts of Asia. Ahammed joined IVOB from Cooper Surgical where he held a similar position. See complete story.

Corindus Vascular Robotics, Inc. (NYSE American: CVRS), a leading developer of precision vascular robotics, announced today that they received approval from the Australian Therapeutic Goods Administration to commercialize its CorPath® GRX System for neurovascular interventions in Australia and New Zealand. The CorPath GRX System is already approved for percutaneous coronary and peripheral vascular interventions in the region. In March 2019, Corindus received CE mark to commercialize CorPath GRX for neurovascular interventions in 33 countries in Europe and the Company plans to initiate clinical cases with select partners in Europe as early as this summer.

Recently Corindus also announced that Albert Einstein Jewish Hospital (Hospital Israelita Albert Einstein) in São Paulo, Brazil has become the first hospital in the Southern Hemisphere to implement Corindus’ CorPath GRX System. Ranked as the best hospital in Latin America for 10 years in a row, Albert Einstein Jewish Hospital will continue to uphold its standing by leveraging the Company’s technology in its health system’s leading research facilities. The Company’s CorPath® platform is the first FDA-cleared medical device to bring robotic precision to percutaneous coronary and vascular procedures. CorPath GRX is the second generation robotic-assisted technology offering enhancements to the platform by adding important key upgrades that increase precision, improve workflow, and extend the capabilities and range of procedures that can be performed robotically. For additional information, visit www.corindus.com CVRS shares closed at $2.62/share and the 52-week trading range is $.78- $3.49/share. Corindus is due to report earnings in the August 6th time frame.

Biotech

The Ishares Nasdaq Biotechnology ETF (IBB) moved up .10% closing at $105.58. This sector has been on a more than healthy run over the last 30 days. The 52-wk range is $89.01 – $122.97.

Pfizer (PFE) closed higher at $42.74 down .26% after the recent announcement regarding their acquisition of Array BioPharma (ARRY) for ~$11.4 billion or $48/share in cash.  See complete story. The pharmaceutical giant and Dow component Merck & Co, Inc. (MRK) that recently announced the acquisition of Tilos Therapeutics for a consideration of up to $773 million closed at $81.92 up by .40%.

Atossa Genetics (ATOS),  a Seattle-based biotech firm developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions closed at $2.09. The average daily trading volume is 825,046 shares per day. Today Atossa reported that patients and their doctors can now visit the company’s website to obtain information about gaining access to the company’s proprietary Endoxifen pursuant to the FDA’s “Expanded Access” guidelines. The company’s website includes its Expanded Access policy as well as an automated form that can be used by physicians to request that their patients be considered for this program: http://www.atossagenetics.com/clinical-trials/ – ea-form. Sometimes called “compassionate use”, Expanded Access is a potential pathway for a physician to access an investigational medical product (drug, biologic, or medical device) for treatment outside of clinical trials when no comparable or satisfactory alternative therapy options are available for their patient with a serious disease or condition, or an immediately life-threatening condition. For more information about this process, please see the FDA website: FDA Expanded Use Website. In December 2018, Atossa began providing its oral Endoxifen to a pre-menopausal, estrogen-receptor positive (ER+), lacking CYP2D6 function, breast cancer patient under an FDA-approved “Single-Patient Expanded Access” IND. The purpose of this therapeutic approach was to reduce activity of the cancer cells prior to surgery. The patient received daily doses of Atossa’s oral Endoxifen for approximately three weeks prior to surgery. There were no safety or tolerability issues and her surgery was successfully completed. The cancer cell biological activity was reduced, based on the estrogen receptor activity of the tumor cells and a 50 percent reduction in Ki-67. The FDA subsequently approved the use of Atossa’s oral Endoxifen for this patient following her surgery under the same program.

Biohaven Pharmaceutical Holding Company Ltd., (BHVN), a clinical-stage biopharmaceutical company with a portfolio of innovative, late-stage product candidates targeting migraine and neurological diseases, including rare disorders, announced recently the pricing of an underwritten public offering of 6,976,745 of its common shares at a price of $43.00/share. The gross proceeds of the offering are expected to be $300 million.  Shares of BHVN closed at $45.50 today down 1.77% after hitting an intraday high of $45.84/share on 479,953 shares of trading. The 52-wk range $29.17 to $67.86. This week Biohaven announced that positive results from a Phase 3 pivotal clinical trial of rimegepant, Biohaven’s small molecule calcitonin gene-related peptide (CGRP) receptor antagonist, for the acute treatment of migraine, were published in the July 12, 2019 issue of the New England Journal of Medicine (NEJM). The data were reported to show that, compared to placebo, patients treated with a single dose of oral rimegepant 75mg experienced superior, rapid pain freedom and freedom from the most bothersome migraine-associated symptom. Approximately 40 million people in the U.S. suffer from migraine and there has been minimal improvement in the standard of care acute treatment of migraine since the 1990s. Rimegepant is an oral calcitonin gene-related peptide (CGRP) antagonist being developed for the acute and preventive treatment of migraines. See Complete Story.

San Diego-based biotech Fate Therapeutics (NASDAQ: FATE), dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders,  closed up at $22.26/share down .20% on 555,258 shares of trading after establishing a new all-time intraday high of $22.82! The 52-week range is $8.64 – $22.82. Oppenheimer initiated coverage on Friday, July 12th with an Outperform Rating. Guggenheim Securities initiated coverage on FATE last week with a “Buy Rating” and a $25/share price target.  Mizuho initiated coverage with a price target of $27/share recently.

Xeris Pharmacueticals, Inc. (XERS) closed down 3.64% at $11.90. Xeris is a specialty pharmaceutical company leveraging its novel formulation technology platforms to develop and commercialize ready-to-use injectable and infusible drug formulations.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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