3 stocks crushed by the market this week 05-23-14
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Transcript of 3 stocks crushed by the market this week 05-23-14
3 Stocks Crushed by the Market This Week
Health care saw plenty of huge winners this week – but some stocks also got crushed by the market. Here are three of the biggest losers. 123
The biopharmaceutical company’s shares plunged 35% for the week.
Provectus Biopharmaceuticals (NYSEMKT:PVCT)
Source: Yahoo! Finance
• A blog posted on an investment community website alleged that Provectus appeared to have failed to win Breakthrough Therapy Designation for cancer drug PV-10
• Provectus responded publicly on Wednesday, stating that the FDA had not reported any status as of yet
• On Friday, however, the company announced that the FDA had indeed denied Breakthrough Therapy Designation for PV-10
• Provectus stated that it remains committed to bringing the drug to market
Why Provectus shares were pummeled
Shares of the biopharmaceutical firm dropped 18% this week.
Intercept Pharmaceuticals (Nasdaq:ICPT)
Source: Yahoo! Finance
• Emails were made public showing that Intercept didn’t disclose lipid abnormalities related to use of its liver disease drug obeticholic acid, or OCA, when it announced an early stop to a clinical trial in January
• Intercept’s stock shot up over 280% after the clinical study ended early, having met its primary endpoint
• The company announced in March that there were 10 cardiovascular events in a study of OCA, but the number was not statistically significantly different than the placebo arm of the study
Why Intercept’s stock imploded
The stock of the biotech fell nearly 11% this week.
Pharmacyclics (NASDAQ:PCYC)
Source: Yahoo! Finance
• Pharmacyclics announced on Friday that Paula Boultbee, Executive VP of Sales & Marketing, resigned
• Boultbee had worked with the company’s collaboration partner Janssen, a unit of Johnson & Johnson, on commercialization of mantle cell lymphoma and chronic lymphocytic leukemia drug Imbruvica
• This news followed another staff change earlier in the week, with Greg Wade being named as Executive VP of Business Development
Why Pharmacyclics shares faltered
• Any of this week’s big losers could mount a comeback
• Pharmacyclics seems to be the best bet for rebounding
• This week’s sell-off on news of the sales VP resigning seems overdone
• Despite potential competition from other drugs in development, Imbruvica still has solid prospects
• Barring any damaging revelations about Boultbee’s exit, Pharmacyclics shares should regain steam
Best shot at bouncing back?
?
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