3 Horrendous Health-Care Stocks This Weekhttp://www.fool.com/investing/general/2012/10/19/3-horrendous-health-care-stocks-this-week-2.aspx Keith Speights
October 19, 2012
Most of us are rubberneckers. Some people can resist the urge to look at crashes along the way -- but I'm not one of them.
And I can't resist my rubbernecking tendencies with health-care stocks, either. Here are three of the most horrendous performers in the health-care investing world this week.
Thanks for nothing, FDA
Shares of biotech companies usually go up following FDA committee approval. Not so for ISIS. Shares plunged more than 30% during the week. NPS Pharmaceuticals (Nasdaq: NPSP ) also proved to be an exception this week. Despite gaining committee approval for Gattex, the stock sank.
The problem is that 3.1% of patients taking Kynamro during the clinical study developed tumors. Even if the FDA ultimately approves the drug, the safety issues raise concerns that Kynamro could only be allowed for very restricted usage.
In need of alignment
The company stated that total revenue would increase by only 8.4% year-on-year, below expectations. Its announcement included fourth-quarter guidance that disappointed analysts. There is also the distinct possibility that Align will have a goodwill impairment charge in the next quarter related to its acquisition of Cadent.
There is some comforting news for Align investors who bought shares in 2011. Even with the sell-off this week, the stock is still up more than 70% over the past year.