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Why This Pharma Stock Tanked Yesterday

By Brenton Flynn – Updated Oct 31, 2016 at 4:02PM

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Rigel Pharmaceutical took a huge dive today. What happened?

Shares of Rigel Pharmaceuticals (RIGL) were down big yesterday on news that AstraZeneca's (AZN) oral rheumatoid arthritis drug was less effective than Abbott Labs' (ABT) RA drug in clinical trials. But what does all this have to do with Rigel? In this video, Motley Fool health care analyst Brenton Flynn tells us what the connection is and why it may be a blow that will prove very difficult for Rigel to recover from.

However, what's bad for Rigel and AstraZeneca might be good news for Abbott Labs. Abbott's spinning off its pharma business early next year, and arthritis drug Humira will account for the lion's share of that company's profits. To help investors better understand the upcoming event, the Fool has created a brand new premium report outlining both Abbott Labs and its spinoff, AbbVie. Inside, we outline all of the must-know opportunities and risks facing both companies, so make sure to claim this 2-for-1 report by clicking here now

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Stocks Mentioned

Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
Rigel Pharmaceuticals Stock Quote
Rigel Pharmaceuticals
RIGL
Eli Lilly and Company Stock Quote
Eli Lilly and Company
LLY

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