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What: Shares of Opko Health (NASDAQ:OPK), a biopharmaceutical and diagnostics company aiming to treat a variety of diseases and disorders, were slammed and sank as much as 15% on Thursday after the company reported second-quarter results that didn't meet Wall Street's lofty expectations.

So what: For the quarter, Opko Health's revenue exploded higher by 80% to $42.4 million, including $17.7 million from its collaboration with Pfizer. On the flipside, Opko's net loss ballooned to $42.8 million in the second quarter, or $0.09 per share, from $25.5 million, or $0.06 per share, in the year-ago quarter. An increase in the company's research and development expenses proved to be one of the primary causes why Opko's adjusted EPS loss increased by 50% year-over-year.

On a comparative basis, Wall Street had been expecting Opko to deliver $44.7 million in revenue and a much narrower loss of $0.05 per share. In other words, today's drubbing appears to be based on Opko's double-miss.

Now what: Opko Health is an interesting stock as it definitely pulls at the heartstrings of bulls and bears.

On one hand, it's not out of the question to assume that investors expect rapid growth from Opko, which has been aggressively forming collaborations and making acquisitions (EirGen Pharma and Bio-Reference Laboratories). In Q2, investors just didn't witness the type of results they were looking for, and the stock, which has had multiple catalysts factored in already, took it on the chin. This wouldn't be the first time where investor emotion whacked a company in the biotech space, and it certainly won't be the last.

On the other hand, Opko has a bounty of catalysts within arm's reach that could provide an almost immediate boost to its bottom-line and stock price. The Food and Drug Administration's PDUFA decision date on rolapitant for chemotherapy-induced nausea and vomiting is less than a month away – rolapitant could deliver peak annual sales of $300 million to $500 million – and before the end of March 2016 we should have an answer from the FDA on rayaldee as a treatment for secondary hyperparathyroidism in patients with stage 3 or 4 chronic kidney disease. Rayaldee could generate north of a half-billion in peak annual sales. Coupled with its acquisitions, Opko's revenue growth could accelerate quickly.

Personally, I would remain on the sidelines until we get better clarity on how Opko's acquisitions and one-time benefits and costs will play out. I'm not denying that Opko has intriguing long-term potential, but emotions are still riding high, and it's not out of the question that Opko shares could have further to fall until we have concrete profits to grasp onto.

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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