1 Huge Health-Care Winner and 1 Big Pharma Loser From Last Week

On Friday, shares of BioDelivery Sciences (NASDAQ: BDSI  ) exploded, up a massive 36% in a single day after a successful phase 3 trial of a pain mitigation pill. This trial success triggers a $10 million milestone for the company and sets BioDelivery up for another $80 million milestone from its partner Endo Health (NASDAQ: ENDP  ) . Buyout speculation has already begun over BioDelivery and the possible success of this drug, so the company will definitely be one to watch, especially as it releases data from a second phase 3 trial later in 2014.

Meanwhile, one of the big losers from Friday's market was Bristol-Myers Squibb (NYSE: BMY  ) . While shares fell by only 5%, it was a steep drop considering the strong Q4 numbers BMY announced. Revenue and earnings both beat estimates handily, at $4.4 billion and $0.51 per share, respectively.

The real reason for the fall was the lack of a decision surrounding the company's immuno-oncology drug Nivolumab, which has been the real driver of value for Bristol in the past year or so. Nivolumab is valuable not only for its own efficacy, but how it could be the central pillar of a drug cocktail for metastatic cancer patients. With the number of different drug combinations being tested in concert with Nivolumab, trial results are complicated, and investors may have to wait for more data to be announced in June to get a bit more color on the Nivolumab investing thesis.

In this video from Friday's Market Checkup, Motley Fool health-care analyst David Williamson gives investors in the health-care sector a full breakdown of one winner and one loser in health care from Friday's market.

What's the best way to play biotech stocks?
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In The Motley Fool's brand-new free report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that Big Pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2811856, ~/Articles/ArticleHandler.aspx, 9/3/2015 3:26:30 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

David Williamson

The Motley Fool's Healthcare Analyst, I specialize in Pharma, Biotech, and how the ACA (Obamacare) is changing the business of healthcare in America. Follow me on Twitter for breaking stock news, policy thoughts, and misc musings...

Today's Market

updated Moments ago Sponsored by:
DOW 16,377.07 25.69 0.16%
S&P 500 1,954.53 5.67 0.29%
NASD 4,743.61 -6.37 -0.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 3:11 PM
BDSI $6.29 Down -0.11 -1.66%
BMY $59.14 Down -0.48 -0.80%
Bristol-Myers Squi… CAPS Rating: ****
ENDP $74.74 Down -0.22 -0.29%
Endo International CAPS Rating: ***
MRK $52.91 Down -0.07 -0.13%
Merck & Co., Inc. CAPS Rating: ****