What happened

Myovant Sciences (NYSE:MYOV) stock trailed a booming market last year by falling 5% compared to a 29% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.

That small annual change doesn't describe the roller-coaster ride that shareholders endured, though, as the stock's 2019 returns ranged from an over-40% gain to a near-80% loss.

Two clinical scientists examining the contents of a petri dish under a microscope

Image source: Getty Images.

So what

That volatility is par for the course in the biotech stock world, but Myovant's year-end rally was the bigger story of the year. Shares rose by over 100% in mid-November after the company reported encouraging study results for its prostate cancer drug called Hero. The treatment showed more effective results than the control test at helping men who suffer from advanced prostate cancer.

Now what

The next step for this particular Hero treatment will be the submission of a new drug application to the FDA, likely in the second quarter of the year. Investors are excited about the potentially huge sales implications of Myovant's pipeline. However, the stock's losses last year should serve as a warning that shareholders will likely have to endure major price swings even if that optimistic scenario comes to pass.

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.