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 Chimerix (NASDAQ:CMRX), a clinical-stage biopharmaceutical company focused on developing antiviral therapeutics, popped as much as 10% after reporting its third-quarter earnings results.
So what: For the quarter, Chimerix's revenue decreased to $0.9 million from $20.9 million in the year-ago period primarily due to one-time milestone payments received last year. The company also turned in a quarterly loss of $6.7 million, or $0.26 per share, compared to an adjusted profit of $0.11 per share last year. However, this loss was $0.13 narrower than Wall Street had expected. Chimerix also recapped its pipeline progress, which includes the initiation of a late-stage trial involving brincidofovir for the prevention of CMV in patients receiving bone marrow transplants.
Now what: Any time a clinical-stage biotech company winds up losing less money than expected, it's good news for shareholders as it means the cash burn rate is likely lessening. I would, however, suggest not getting too wrapped up in Chimerix's move higher today until we get a better idea of how its brincidofovir late-stage data looks. I often get criticized for missing the big moves in biotech stocks for taking the conservative approach, but I also tend to avoid those calamitous 50%+ down days by playing it safe. I would certainly suggest the conservative approach may be your best bet with Chimerix.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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