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

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

    1. 1. 3 Stocks Crushed by the Market This Week
    2. 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. 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. 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. 5. Shares of the biotech sank nearly 11% this week. TG Therapeutics (NASDAQ:TGTX) Source: Yahoo! Finance
    6. 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. 7. The stock of this biotech fell almost 12% this week. Vertex Pharmaceuticals (NASDAQ:VRTX) Source: Yahoo! Finance
    8. 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. 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. 10. Find out which stock The Motley Fool’s chief investment officer selected as the top pick for 2014 in our free report!