3 Horrendous Healthcare Stocks This Week 2-21-14


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Which healthcare stocks were the worst of the worst this 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
  • 3 Horrendous Healthcare Stocks This Week 2-21-14

    1. 1. 3 Horrendous Health-Care Stocks This Week
    2. 2. 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.
    3. 3. Onconova Therapeutics (Nasdaq: ONTX) The stock of the biopharmaceutical firm focusing on cancer drugs plunged nearly 38% for the week.
    4. 4. 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 patients. • Another phase 2 study is under way for rigosertib in treating lower-risk MDS patients.
    5. 5. Medbox (NasdaqOTH: MDBX) Shares of this medical marijuana dispensing equipment maker careened more than 24% this week.
    6. 6. 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 chairman, Vincent Mehdizadeh, responded with a scathing criticism of Andrew Left.
    7. 7. GW Pharmaceuticals (Nasdaq: GWPH) The stock of the pharmaceutical firm focusing on medical marijuana fell nearly 9% this week.
    8. 8. 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.
    9. 9. 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 looking elsewhere.
    10. 10. Find out which stock The Motley Fool’s chief investment officer selected as the top pick for 2014 in our free report!