Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Savient Pharmaceuticals
So what: After getting the go-ahead for Krystexxa as a treatment for gout, the company expected to find a buyer within a few months. When the company announced its efforts to sell had failed, the market crushed the stock.
Now what: My first reaction is to say this is a market overreaction to a non-deal, and we know how much Wall Street loves deals. The company is expecting to release Krystexxa later this year, so this isn't the end of the world, and the company is looking for strategic partners. A 43% drop makes me more than a little cautious today, but as the stock settles down in coming days I think this move is an opportunity for a long-term investor to start building a position in this stock.
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Fool contributor Travis Hoium does not have a position in any company mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has a disclosure policy.