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: Shares of Pharmacyclics (Nasdaq: PCYC) are trading down 16% today after being downgraded by analysts.

So what: Analysts at both RBC Capital and Global Hunter Securities downgraded shares of Pharmacyclics today. This comes a day after the company announced a licensing deal with a division of Johnson & Johnson (NYSE: JNJ) that could pay up to $975 million.

Now what: The deal with J&J includes a $150 million upfront payment and potential for the additional $825 million as the drug passes approvals for several cancers. Analysts obviously aren't applauding the deal and the market has socked Pharmacyclics hard today. Considering the company had negligible revenue and this one deal alone could be worth more than the company's market cap, I think the move is overdone.

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