Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company ImmunoGen (NASDAQ: IMGN ) plummeted 18% today after deciding to stop a phase 2 study of its experimental small-cell lung cancer drug because it didn't appear to be working.
So what: The trial's independent data monitoring committee concluded that IMGN901 was unlikely to show a sufficient improvement to justify continuing the trial, prompting ImmunoGen to end the study and, in the process, dash investors' short-term hopes for the pipeline. Specifically, analysts don't expect ImmunoGen to move forward with IMGN901 in any other indications due to the poor results, raising plenty of uncertainty over its growth trajectory.
Now what: ImmunoGen will probably now have to focus on the preclinical compounds in its pipeline. "This is clearly a disappointing outcome, as there is a tremendous need for new treatment options for SCLC," said ImmunoGen Chief Development Officer Dr. Charles Morris. "We will be analyzing the findings to date in this trial as part of assessing potential next steps for IMGN901." But while ImmunoGen is still too speculative for average Fools, today's big drop -- the stock is now off 35% from its 52-week high -- might be an attractive opportunity for biotech-savvy contrarians.
A more reliable way to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.