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Why Dova Pharmaceuticals Is Nosediving Today

By Brian Feroldi - Dec 17, 2018 at 11:53AM

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Traders flee in response to a surprise management shake-up and weak financial guidance.

What happened

After the company reported turnover in the executive suite and weak fourth-quarter results, shares of Dova Pharmaceuticals ( DOVA ),  a commercial-stage biopharma focused on diseases of the liver, dropped 27% as of 11:30 a.m. EST on Monday.

So what

Here are the key takeaways from today's announcement:

  • Dr. David Zaccardelli has been appointed as Dova's president and chief executive officer. Dr. Zaccardelli was formerly an executive at United Therapeutics Corporation
  • Alex Sapir, the company's outgoing CEO, is no longer with the company. This change went into effect on Sunday.
  • Jason Hoitt is joining the company as chief commercial officer. Hoitt spent a good portion of his career with Gilead Sciences and Vertex Pharmaceuticals
  • The company also provided investors with a preliminary look at net product sales for Doptelet, which are expected to land between $2.4 million and $2.7 million in the fourth quarter. For context, Wall Street was expecting $4.8 million in revenue, so this was a substantial miss.

Traders slammed the stock in response to the weak quarterly results and surprise management shake-up.

Businessman packing up office.

Image source: Getty Images.

Now what

Dova's stock is currently trading at an all-time low, which makes sense given the uncertainty surrounding its leadership team and disappointing fourth-quarter results.

Time might show that hiring Dr. Zaccardelli was the right move for the business to make and that the company's opportunity ahead warrants investor attention at today's prices. However, right now, there are a lot of unanswered questions lingering in the air, so I think that caution is appropriate.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Dova Pharmaceuticals, Inc. Stock Quote
Dova Pharmaceuticals, Inc.
Gilead Sciences, Inc. Stock Quote
Gilead Sciences, Inc.
$69.50 (-0.09%) $0.06
Vertex Pharmaceuticals Incorporated Stock Quote
Vertex Pharmaceuticals Incorporated
$205.06 (0.61%) $1.25
United Therapeutics Corporation Stock Quote
United Therapeutics Corporation
$188.72 (1.47%) $2.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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