Why Regado Biosciences Inc. Stock Imploded

Regado delivers "heart-stopping" news to investors regarding its lead anti-thrombotic drug REG1.

Jul 3, 2014 at 12:57PM

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 Regado Biosciences (NASDAQ:RGDO), a clinical-stage biopharmaceutical company focused on developing drugs used to thwart thrombotic events in acute and non-acute cardiovascular indications, imploded and fell as much as 58% after it announced the initiation of an unplanned data safety monitoring board review of REG1 (also known as Revolixys Kit), its lead investigational antithrombotic drug system.

So what: According yesterday's late-night press release, patient enrollment in Regado's REGULATE-PCI trial has been halted until the Data Safety Monitoring Board completes a review which is expected within the next eight weeks. As noted, the DSMB plans to conduct "a full analysis of safety and treatment benefit-risk ratio of all patients enrolled to date (3,234) with a focus on serious adverse events related to allergic reactions."

Now what: There's obviously a lot of promise behind REG1 as it targets a wide audience of acute coronary syndrome patients and could give physicians the ability to up- and down-regulate anticoagulation properties to avoid potential bleeding incidents in patients while also protecting them from potentially deadly blood clots.

However, beyond REG1 Regado's pipeline is fairly thin. It has REG2, a venous thrombosis-fighting therapy that just began phase 1 studies and REG3, a preclinical anti-platelet candidate. Therefore, if there are concerns about REG1's safety this early on in its extensive phase 3 study then Regado's valuation, should REG1 not succeed or be proven too dangerous relative to its benefits profile, may likely take a major hit – perhaps even bigger than today's drop. With no partner on this project, and now plenty of questions raised regarding REG1's safety, I believe you have all the makings of a stock you should keep your distance from.

Regado may offer plenty of potential, but this revolutionary product is likely to leave it in the dust! 
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.

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.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information