Much of the U.S. was
snowed under this week.
Several health-care stocks
unfortunately had the
same experience -- with
shivering plunges in share
Source: Wikimedia Commons.
Prana Biotechnology (Nasdaq: PRAN)
The stock of the biotech focusing on neurological disorders
dropped nearly 27% for the week.
Why Prana was pummeled
• Summer Street analyst Bart Classen
cast doubt on prospects for PBT2 in
treating Alzheimer’s disease.
• Classen thinks Prana’s phase 2b
results for PBT2 don’t show
statistically significant improvement.
• PBT2 is also in phase 2a clinical trials
targeting treatment of Huntington’s
Galena BioPharma (Nasdaq: GALE)
Shares of this biotech careened more than 24% this week.
Why Galena shares tanked
• TheStreet’s Adam Feuerstein
published a damaging article on
• The article reported that Galena was
linked to a stock-promotions firm
that allegedly uses questionable
tactics at the same time that insiders
• Galena responded to the article –
but only after a huge drop in its stock
The Medicines Company (Nasdaq: MDCO)
The drugmaker’s shares fell nearly 14% this week.
Why The Medicines Company shares sank
• An FDA advisory committee
recommended against approval
for antiplatelet agent cangrelor.
• Concerns were voiced about the
design of cangrelor’s clinical
• The FDA isn’t bound by the
recommendation – and makes its
decision for approval by April 30.
Best shot at bouncing back?
• Galena should have a
reasonable chance at
• Insider selling after rising
nearly 250% between Nov. 1
and Jan. 16 isn’t surprising.
• Galena’s pipeline holds
potential for the future.
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