Today has been a rough day for the biotech market as a whole. However, in digging through the popular assets in the sector, I found a few notable movements. Here’s they are…
Synergy Pharmaceuticals Is Down | Not For Long
Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is having a tough day in the market today. Currently (1:27), SGYP is trading at $8.05 per share after falling 4.37% so far today. However, I’m not expecting for declines to last very long. The reality is that SGYP is in the midst of late stage testing on an experimental drug that looks incredibly promising called plecanatide. After the final study, plecanatide will be ready for a submission of an NDA to the FDA; and the results are due relatively soon. When the results are released, we can expect the event to act as a major catalyst for SGYP. So, buying the declines may be a strong opportunity for growth.
Biogen Stock Falls After Earnings
Biogen Inc (NASDAQ: BIIB)
As expected, Biogen released its second quarter earnings report; and while the company beat earnings expectations, there was a negative reaction among investors. Analyst expected to see earnings of $4.10 per share in the quarter. BIIB actually produced $4.22 per share. However, top-line revenue was a miss. To make matters worse, Biogen also released updated guidance for FY15. Guidance with regard to earnings was down substantially; leading to the massive decline we saw in the stock today. Currently (1:36), BIIB is trading at $305.37 per share after a loss of 20.69% so far today. While we may see slight upward momentum tomorrow as the stock corrects from the massive decline, I’m not expecting to see any substantial growth out of BIIB any time soon.
CIGNA Corporation Enters A Definitive Acquisition Agreement
CIGNA Corporation (NYSE: CI)
Today, Anthem, Inc. (ANTM) and CIGNA announced that they have entered into a definitive agreement for Anthem to acquire majority ownership of CIGNA. To learn the details of the acquisition, click here. Both ANTM and CI are seeing declines today after the announcement of the $54.2 billion deal. However, I do expect to see growth in the future from both companies. Therefore, today’s declines could be producing a decent entrance opportunity.
XOMA Corp Continues To Retreat
XOMA Corp (NASDAQ: XOMA)
Xoma Corp fell dramatically earlier this week as the result of missing the primary endpoint on yet another late stage study. While we saw a bit of a correction yesterday, I wasn’t convinced that we’d see the commencement of long term growth; and I’m glad I wasn’t. Today, the stock is falling yet again. Currently (1:45), XOMA is trading at $0.96 per share after a decline of 7.86% so far today. As I’ve mentioned before, XOMA simply isn’t a stock that I would gamble on at the moment. After consistently missing primary endpoints in late stage studies for years, I just can’t see many investors putting their faith in the company any time soon.