As the week comes to the close, we are reminded how that no matter how calm the broader market looks, there are always waves being made in the biotech sector. Today we have obesity drama, the death of a drug, and the lift of a clinical hold moving several high-profile stocks. Let's dive into these headlines and highlight key investor takeaways.
First up is Halozyme
Astex shares are off 9%, which isn't terrible considering the news. Amuvantinib was one of five phase 2 drug candidates, but since the drug isn't partnered, success would have been huge for the company. However, because Astex has so many partners, it is insulated from any single failure. Investors now are left to focus on Dacogen sales, which recently suffered a setback when the FDA denied an expanded indication into AML, and the rest of the company's development pipeline. Because of all the irons in the fire, this stock is definitely one to watch, but investors may be better served watching from a distance until we see further development of the pipeline.
Finally, that brings us to the hottest little corner of biotech: obesity drugs. VIVUS
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