3 stocks crushed by the market this week 05-23-14

10
3 Stocks Crushed by the Market This Week

description

This week's worst healthcare stocks

Transcript of 3 stocks crushed by the market this week 05-23-14

Page 1: 3 stocks crushed by the market this week   05-23-14

3 Stocks Crushed by the Market This Week

Page 2: 3 stocks crushed by the market this week   05-23-14

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

Page 3: 3 stocks crushed by the market this week   05-23-14

The biopharmaceutical company’s shares plunged 35% for the week.

Provectus Biopharmaceuticals (NYSEMKT:PVCT)

Source: Yahoo! Finance

Page 4: 3 stocks crushed by the market this week   05-23-14

• 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

Page 5: 3 stocks crushed by the market this week   05-23-14

Shares of the biopharmaceutical firm dropped 18% this week.

Intercept Pharmaceuticals (Nasdaq:ICPT)

Source: Yahoo! Finance

Page 6: 3 stocks crushed by the market this week   05-23-14

• 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

Page 7: 3 stocks crushed by the market this week   05-23-14

The stock of the biotech fell nearly 11% this week.

Pharmacyclics (NASDAQ:PCYC)

Source: Yahoo! Finance

Page 8: 3 stocks crushed by the market this week   05-23-14

• 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

Page 9: 3 stocks crushed by the market this week   05-23-14

• 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?

?

Page 10: 3 stocks crushed by the market this week   05-23-14

Find out which stock The Motley Fool’s chief investment officer selected as the top pick for

2014 in our free report!