AstraZeneca plc (ADR) (NYSE: AZN)
AstraZeneca was off to a relatively normal start to the day today. However, just over an hour ago, we started to see a big decline on the stock. After a bit of digging, we believe we’ve dug up the cause. Today, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from AZN ahead.
Trade smarter and make more money with Tradespoon!
What We’re Seeing From AZN
As mentioned above, AstraZeneca was off to a relatively normal start in the market today. In fact, the stock was trading in the green for most of the morning. However, as the afternoon came around, we saw a steep slide. At the moment (1:14), AZN is trading at $28.28 after a loss of $1.31 per share (4.43%) thus far today.
Why Is The Stock Falling?
As investors, we know that the news moves the market. As soon as the dip started, we went looking for the news, and we dug up something big. It looks like the FDA has placed a partial clinical hold on a key Phase 3 clinical study.
The study surrounds a checkpoint inhibitor developed by AZN known as durvalumab. Unfortunately, the FDA has halted new enrollment, causing AstraZeneca to fall. According to reports, the partial hold was instituted when investigators tracked bleeding events surrounding the combination study that combined durvalumab with tremelimumab for head and neck cancer.
In a statement, the company said that it plans to work with the FDA to sort out the ongoing study. AZN also said that all other studies are proceeding as planned.
What We Can Expect To See Ahead
At least in the short term, I’m expecting to see further declines. At the moment, AZN simply can’t afford this type of delay, and investors are concerned. Future short- and mid-term movement will likely be dictated by this story as it unfolds. So, if you’re trading AstraZeneca, it’s going to be incredibly important to watch this news.
Don’t waste your time! Click here to find winning trades in minutes!
Never Miss The News Again!
Do you want real-time, actionable news delivered directly to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Wikipedia]