Why Provectus Biopharmaceuticals Inc. Shares Plummeted

Provectus shares tumble after it refutes misleading claims in a blog. Find out what investors should really be paying attention to instead.

May 22, 2014 at 2:29PM

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 Provectus Biopharmaceuticals (NYSEMKT:PVCT), a clinical-stage biopharmaceutical company focused on developing therapies to treat oncologic and dermatologic conditions, plunged as much as 20% after the company issued a press release refuting claims made against the company from an investment community blog.

So what: According to Provectus' response, it refuted what it believed to be numerous inaccuracies in the blog. Specifically, Provectus notes that PV-10, its investigational metastatic melanoma therapy, hasn't failed the breakthrough therapy designation, but is awaiting a decision from the Food and Drug Administration as to the status of its request. Provectus also denies any affiliation with stock promoters, and assured its investors that the most important patent covering PV-10 expires in 2031 and not 2016. In response, at least two law firms have opened investigations into potential wrongdoing as of yesterday afternoon.

Now what: Thanks to high-profile short-sellers like Citron Research and Muddy Waters the ability to tear a company apart in a public format has never been easier. Provectus shares were absolutely clobbered on these allegation which, as of now, the company vehemently denies.

So what should you do? I'd suggest sticking to your current investment thesis in the company because all that really matters is whether or not Provectus can get its phase 3 study of PV-10 off the ground. The initial phase 2 results were encouraging and are the primary reason Provectus' share price saw such rapid appreciation. However, it reported its final top-line data from this trial in Oct. 2012, and shareholders have to be wondering what's with the hold-up? If Provectus is simply hoping for a breakthrough therapy designation and then to find a partner based on that designation that's one thing. But if Provectus fails to get the breakthrough designation, then what? For now, given the speculation surrounding Provectus, I'd personally suggest remaining on the sidelines until we have more clarity about when a phase 3 trial for PV-10 is scheduled to begin.

Provectus may offer investors plenty of potential, but even it could struggle to keep pace with this top stock over the long run
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers