5 Companies That Destroyed Shareholders This Past Week
The late-summer doldrums are over and the markets are on the move again as we are now in the fourth quarter. After the Dow and S&P 500 recently hit new all-time highs, more companies have grown confident and, after what seemed like a very long drought, the IPO market is heating up again. Along with this companies are looking to cash in on their success over the summer and are executing secondary offerings. Despite the success some of these companies have seen, a majority of the time there is a large pull back on the pricing of the offering.
Despite all the positive sentiment about market highs, quite a few companies still have struggled, or in a few cases are looking to cash in. Even though the market has made incredible gains, a few companies held it back from pushing even higher.
24/7 Wall Street has picked out a few companies posting the largest losses for the week. We have included a note on why each stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.
Trinity Biotech PLC (NASDAQ: TRIB) shares got halved on Tuesday after the company announced that it would withdraw one of its submissions to the U.S. Food and Drug Administration (FDA). Specifically, the company said that it is withdrawing its 510(k) pre-market notification submission for the Meritas Troponin-I Test and Meritas Point-of-Care Analyzer. Essentially, the company held a meeting with the FDA last week in order to obtain an update on the company’s Meritas Troponin submission. At this meeting the FDA asked Trinity to consider withdrawing their submission, due to some concerns the agency had about the submission.
The primary concerns were regarding the device’s operating temperature range and that the Troponin-I clinical performance is not consistent with the clinical performance data presented by the most recently cleared laboratory Troponin device. The decision to withdraw was based on the fact that the company believes that there is no certainty that this level of performance can be achieved by the Meritas product even with the benefit of further development efforts.
Shares of Trinity Biotech closed the week down nearly 50% at $6.57. The stock has a consensus price target of $13.08 and a 52-week trading range of $5.76 to $13.68.
On Wednesday, shares of Immunomedics Inc. (NASDAQ: IMMU) dropped sharply after the company announced the pricing of its secondary offering. Essentially, the company will price its 10 million shares, each with an accompanying warrant, at $3.00. At this price, the company expects to receive gross proceeds of $30 million from the offering. Each warrant will be exercisable six months following the date of issuance and will expire on the second anniversary of the date of issuance and have an exercise price of $3.75.
Shares of Immunomedics ended the week down 20%. The stock last traded at $2.58, with a consensus price target of $5.50 and a 52-week range of $1.61 to $5.44.
Alnylam Pharmaceuticals Inc. (NASDAQ: ALNY) saw its shares crash on Thursday after the company announced that it will be discontinuing one of its late-stage trials. Specifically, the company announced that upon the recommendation of the Endeavour Phase 3 study Data Monitoring Committee (DMC) to suspend dosing, it has decided to discontinue development of revusiran. Revusiran is an investigational RNA interference (RNAi) therapeutic that was being developed for the treatment of hereditary ATTR amyloidosis with cardiomyopathy.
Following recent reports in the Phase 2 OLE study of new onset or worsening peripheral neuropathy, the Endeavor DMC assembled Wednesday at the company’s request to review these reports and Endeavour data on an unblinded basis. Unfortunately, the DMC did not find conclusive evidence for a drug-related neuropathy signal in the Endeavour trial, but informed the company that the benefit-risk profile for revusiran no longer supported continued dosing.
As a result, Alnylam reviewed unblinded Endeavor data, which revealed an imbalance of mortality in the revusiran arm as compared to placebo.
Alnylam shares had a rocky road as well, with the stock down 50% for the week. Shares closed Friday at $34.27, with a consensus price target of $73.53 and a 52-week range of $33.75 to $110.75.
After Idera Pharmaceuticals Inc. (NASDAQ: IDRA) announced that it intends to have a secondary offering, shares sank on Thursday. No pricing details were given, but Idera expects to sell up to $50 million in shares of common stock, with an overallotment option equal up to 15% of the number of common stock sold in the offering. The previous price was $2.25.
Shares of Idera most recently closed at $2.00. The consensus price target is $5.00, and the 52-week range is $1.19 to $4.42. Over the course of the past week, the stock was down 27%.
Inventory Global Inc. (NASDAQ: INVT) saw its shares slide on Thursday after the company announced that it would be having a secondary offering. The company intends to price 6 million shares at $1 per share that come with warrants to purchase up to 6 million shares of common stock, exercisable for a period of five years at the price of $1 per share. The offering is expected to close on October 11.
Keep in mind that the total gross value of this offering is $6 million, while the company has a current market cap of nearly $4 million at its current price level.
Last week, the stock was down 46%. Shares closed at $0.80 on Friday, with a consensus price target of $10.30 and a 52-week range of $0.71 to $3.67.