3 stocks crushed by the market this week 06-20-14

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3 of the worst health-care stocks of the week

3 of the worst health-care stocks of the week

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  • http://www.fool.com/investing/general/2014/02/06/why-medidata-solutions-inc-shares-dipped.aspx
  • http://www.fool.com/investing/general/2014/02/06/why-affymetrix-inc-shares-dropped.aspx
  • http://www.fool.com/investing/general/2014/02/06/why-medidata-solutions-inc-shares-dipped.aspx
  • http://www.fool.com/investing/general/2014/02/06/why-medidata-solutions-inc-shares-dipped.aspx

Transcript

  • 1. 3 Stocks Crushed by the Market This Week
  • 2. They say that a rising tide lifts all boats. Despite a rising overall market, that old saying doesn’t hold water for these three health-care stocks.
  • 3. Shares of the company specializing in plasma-based biopharmaceutical products dropped 10% for the week. China Biologic Products (NASDAQ:CBPO) Source: Yahoo! Finance
  • 4. • China Biologic announced on Tuesday that it planned to sell another 1 million shares with some shareholders selling another 2.2 million shares in the secondary offering • Share dilution nearly always causes a stock to drop • In this case, the decline isn’t too bad for the amount of dilution of shares Why China Biologic shares hit a great wall
  • 5. Shares of the biotech sank nearly 11% this week. TG Therapeutics (NASDAQ:TGTX) Source: Yahoo! Finance
  • 6. • TG Therapeutics’ decline appears to be simply a case of profit-taking • On June 13, the company announced positive preliminary results from a phase 2 study of its TG-1101 in combination with Pharmacyclics’ (NASDAQ:PCYC) Imbruvica, resulting in a nice run-up in TG’s stock • Imbruvica is already approved as a second- line treatment for Chronic Lymphocytic Leukemia (CLL) and Mantle Cell Lymphoma (MCL) • The two drugs combined achieved 90% overall response rate with 10 evaluable patients in the study Why TG Therapeutics shares tanked
  • 7. The stock of this biotech fell almost 12% this week. Vertex Pharmaceuticals (NASDAQ:VRTX) Source: Yahoo! Finance
  • 8. • Concerns expressed by analyst Geoffrey Porges with Bernstein weighed heavily on Vertex shares • Porges commented in a report that he thinks there is a high risk of failure with Vertex’s phase 3 study of cystic fibrosis drug VX809 • Two concerns about the VX809 trial stand out to Porges: – Some patients’ symptoms get worse before they get better – Positive effects might not be strong enough to justify the cost of the drug Why Vertex’s momentum vanished
  • 9. • Vertex’s entire fate doesn’t rest on success with VX-809, but worries about the study could have some merit • China Biologic Products boasts solid earnings growth and should rebound from the latest public stock offering • The nod for best bet to mount a comeback, however, goes to TG Therapeutics • A pullback for TG was due with shares nearly doubling over the last month, but the future looks bright for the biotech Best shot at bouncing back?
  • 10. Find out which stock The Motley Fool’s chief investment officer selected as the top pick for 2014 in our free report!