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Biotech Losers: InterMune, Enanta, and GW Pharmaceuticals

In this video from Thursday's Market Checkup, Motley Fool health-care analysts David Williamson and Max Macaluso dive into the biggest stories impacting health-care investors on the market today.

In this segment, a look at the biotech losers on the market during the last two days. InterMune (NASDAQ: ITMN  ) pulled back 10% yesterday, down a total of 22% during the last five trading sessions, as investors remain concerned about new competition for Esbriet, which is the company's idiopathic pulmonary fibrosis drug. Enanta Pharmaceuticals (NASDAQ: ENTA  ) is also down 10%, dragged down by the continuing investor excitement surrounding Gilead and its hepatitis C treatment. Enanta is partners with AbbVie and will get royalties off of AbbVie's own hep. C drug regimen, but investor enthusiasm may be siding with Gilead at the moment. David sees this battle as coming down to relative pricing, and will be watching that closely. And finally, GW Pharmaceuticals (NASDAQ: GWPH  ) fell by 7% after reporting solid earnings that beat on the top line yesterday, after its tremendous run up of more than 500% in the past six months, David sees this as potentially a case of investors taking some profit off the table.

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  • Report this Comment On February 10, 2014, at 5:15 PM, siteobserver wrote:

    You're missing a major point on ENANTA - the Enanta/ABBV solution has a 90% CURE rate - as opposed to the "impact" rate for Gilead's oral treatment which is different. It appears that ENTA's solution cures Hep C in patients who do not respond to other treatments. So in addition to price competition, we should watch for signals as to which treatment is more effective - in other words, which is a "cure" and which is a "treatment." The jury is still out on this but the early signals point to Enanta/ABBV. Also, ENTA's stock price tends to down when GILEAD has news, but GILEAD also tends to drop when ENTA has news.

    The next big news on the horizon is ENTA's earnings report - Feb. 24 - followed by results from the phase 3 clinical trials, and later this year, the expected formal approval by the FDA which means ENTA's cure will go on sale this year.

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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...

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