Ringing in the New Year means bidding the holiday season goodbye. Has the slow holiday week boredom gotten to some investors? Several small biotech stocks landed in the investment spotlight this week, one of which was Encysive
An analyst at SG Cowen -- a firm that participated in underwriting a public offering for Encysive earlier this month, as a matter of fact -- initiated coverage on the stock and commented on the outlook for the company, particularly in relation to one of its medications, which is currently in Phase III trials.
That drug, Sitaxsentan, will treat pulmonary hypertension, and the compelling note on that disorder is a $1.5 billion market.
This week, investors grabbed up shares of several other small biotech companies, including Trinity Biotech
Meanwhile, we already know that even large, established companies suffer serious setbacks during drug development, even when trials are in the late stages. A few recent discontinued late-stage trials at Merck
For investors addicted to speculative stocks (and possibly bored by a fairly slow week in financial news), an analyst initiation might have seemed the perfect prescription, but it seems many investors got too compulsive. Yesterday's news on Encysive was no reason to rush to buy in.
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Alyce Lomax welcomes your feedback at firstname.lastname@example.org.