Rough Day on Wall Street for Biotech Companies

Some biotech companies had it rough on Wall Street yesterday when their stocks crashed after the release of data showing issues with the safety and efficacy of their products, according to STAT. Take Spark Therapeutics of Philadelphia, for instance. It’s stock dipped 20% at one point because its hemophilia B treatment caused one of the patients in the trial to develop an immune response.

The biggest losers were Trillium Therapeutics of Canada and Achillion Pharmaceuticals of New Haven, Conn. Even companies in which much hope and hype have been invested, such as Bluebird Bio of Cambridge, Mass., saw a sharp drop. Investors looked warily upon early data on the company’s blood disorder treatments. Its stock was down 11% by the end of the day.

Brian Skorney, an analyst at Baird tells STAT: “What I’m seeing in general is if there’s anything that a company reports that’s even nominally negative, the stock gets destroyed. Investors are so spooked about the sector that any liquidity event is a selling event. If it appears negative, they want to get out ahead of anyone else, which just leads to relentless selling.”

Source: STAT