While the victors
celebrated in Sochi this
week, some Olympians felt
the agony of defeat. The
same was true in the world
of health care.
Source: Wikimedia Commons.
Onconova Therapeutics (Nasdaq: ONTX)
The stock of the biopharmaceutical firm focusing on cancer drugs
plunged nearly 38% for the week.
Why Onconova nosedived
• It announced disappointing results
for phase 3 study of rigosertib.
• Rigosertib failed to meet its primary
endpoint of median overall survival.
• The study focused on use of the drug
in the treatment of myelodysplastic
syndrome, or MDS, in high-risk
• Another phase 2 study is under way
for rigosertib in treating lower-risk
Medbox (NasdaqOTH: MDBX)
Shares of this medical marijuana dispensing equipment maker
careened more than 24% this week.
Why Medbox shares got clobbered
• The company was the target of a
damaging online article by Citron
Research’s Andrew Left.
• Left called Medbox’s stock “worthless”
and accused the company of fraud.
• Medbox publicly acknowledged some
accounting errors that were corrected.
• Medbox’s largest shareholder and
Mehdizadeh, responded with a scathing
criticism of Andrew Left.
GW Pharmaceuticals (Nasdaq: GWPH)
The stock of the pharmaceutical firm focusing on medical
marijuana fell nearly 9% this week.
Why GW shares weren’t buzzing
• It was attacked by a short-seller,
Infitialis, in a blog post.
• The blogger listed multiple issues
with GW Pharmaceuticals,
including being overhyped as a
marijuana play and overvalued.
• The stock was hit hard initially,
but recovered somewhat.
Best shot at bouncing back?
• None of this week’s horrendous stocks
look very promising.
• Onconova still has a phase 2 study
under way for rigersitib in treating
lower-risk MDS, but it’s probably
something of a long shot.
• While short-sellers attacking Medbox
and GW Pharmaceuticals don’t have the
purest of motives, both stocks do
appear to be overvalued.
• Investors probably should consider
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