In a highly speculative sector like small-cap biotech, Wall Street may not walk softly, but it certainly carries an exceptionally big stick. And today the Street focused on two stocks with hepatitis-C candidates in development, lavishing praise on one and throwing scorn on the other. Let's jump in and take a closer look at the logic behind the upgrades and downgrades and see what price movements those calls wrought.
To make sense of the winner, let's start with today's loser, Idenix Pharmaceuticals
Idenix shareholders can thank Bristol-Myers Squibb
Given all that, it's no surprise that Wall Street's new darling, Achillion
Now, it's incredibly early, but if everything goes right, Achillion is developing all the parts of a treatment cocktail that could potentially compete with what Gilead
Just don't expect a buyout for Achillion anytime soon. Although Gilead appears to have succeeded in buying a blockbuster where Bristol failed, executives are generally risk-averse. As Achillion continues to advance its drugs without stumbles, a partnership with a deep-pocketed company looking to stake a claim in the space is the more likely outcome.
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