This was the second week of trading for 2016, and many shareholders were affected this week as we saw broad markets, oil prices and China crumble. Both the Dow Jones Industrial Average and S&P 500 felt an impact from China only late in the week, but there was ongoing weakness from oil the entire week. Some companies absolutely destroyed shareholders, for multiple reasons, and the broad markets help give that extra push down.
While these were not the five biggest absolute losers of the week, of the active stocks, these all issued news or had news that took place and pushed the stocks down. 24/7 Wall St. has tracked five companies in which shareholders were punished last week. We have specifically avoided companies within the energy and commodities sectors.
Sarepta Therapeutics
While Sarepta Therapeutics Inc. (NASDAQ: SRPT) plunged early on Friday, it was not on news that it has done anything wrong or failed any clinical trials. Sarepta retreated as the result of a failed clinical trial by BioMarin Pharma.
On Thursday, the U.S. Food and Drug Administration (FDA) turned down a New Drug Application (NDA) for BioMarin’s treatment of Duchenne muscular dystrophy (DMD). Sarepta is developing its own treatment for DMD, a drug called eteplirsen, which will face an FDA review on Friday January 22. The FDA will give its decision by February 26.
What we’re seeing here is investors getting spooked by a failed study within one major biotech and thinking this could very well happen to the other. However, the fallout from this failed study within Sarepta is much more crippling than in BioMarin.
Over the course of the week, Sarepta shares fell 60% and, and year to date they are down 62.7%. Shares traded at $14.28 on Friday’s close. The stock has a consensus analyst price target of $46.75 and a 52-week trading range of $11.42 to $41.97.
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