At Equities.com we’re interested in the disparity between performance and analyst proselytizing, which inspired us back in June to look at six specific biotech plays that had lost value on the quarter but retained high marks from the experts.
Coming back to these “analyst darlings,” we found some pretty interesting returns. Here’s the six, how they fared, and how the group as a whole is doing since we first checked in.
Spoiler: sometimes the experts know what they’re talking about… at least in one case.
Durata Therapeutics (DRTX) – This Chicago-based antibiotics manufacturer saw shares spike after promising Phase 3 clinical trials for Dalbavancin in September. When we first checked in with Durata in June, the company was sitting at $7 a share. Nearly four months later, the stock sits at $8.91 a share.
Total Gain Since Spotlight: 25.86 percent
Coronado Biosciences (CNDO) – This immunotherapy drug development company was actively courting investors when we first checked in. Shares spiked in reaction to a strong second quarter earnings report, but soon thereafter embarked on a steady decline. Coronado currently sits at $6.67 a share, substantially lower than when we first checked in with them.
Total Loss Since Spotlight: -12.77 percent
Anacor Pharmaceuticals (ANAC) – Anacor develops “small molecule therapeutics derived from their chemistry platform.” They scored a big victory with the FDA's recent acceptance of a New Drug Application for Tavaborole in October.
Total Gain Since Spotlight: 92.77 percent
OncoGenex Pharmaceuticals (OGXI) – This oncology drugmaker had been hedging their bets on the OGX-011 prostate cancer-treatment. Despite a better-than-expected earnings report in August, the company’s shares are still down since we checked in, currently sitting at $8.69 a piece.
Total Loss Since Spotlight: 13.27 Percent
Lpath Inc. (LPTN) – The San Diego biotech works with drugs that treat macular degeneration. While Lpath had made modest gains over the summer, the company recently got some bad news when they learned drug giant Pfizer would be divesting from them. Lpath lost twenty percent of their value in response. When we checked in last, Lpath was at $4.56 a share. They’re at $4.24 now.
Total Loss Since Spotlight: 9.65 percent
Array BioPharma (ARRY) – This biotech is “focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer.” On Sept. 27 the company reported their fiscal full-year results which caused their stock to lose a significant amount of value, though they are still up since we last checked in, currently sitting at $5.70 a share.
Total Gain Since Spotlight: 14.66 percent
Total Return of the Six Biotech Plays (as a portfolio): 16.26 percent
S&P 500 During Same Time Frame: 2.68 percent