24/7 Wall Street has picked out a few companies posting some of the largest losses for the past week. Some companies are hitting lows and creating huge shareholder losses while the market is just below all-time highs but still struggling. These are the same companies holding back the market and punishing shareholders.
We have included a little color on why each stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.
PTC Therapeutics
Early Monday, PTC Therapeutics Inc. (NASDAQ: PTCT) shares took a dive after the company announced a key U.S. Food and Drug Administration (FDA) decision, and it wasn’t good. The question on everyone’s mind is whether this will be a huge roadblock for growth in the future.
According to the regulatory update, the FDA essentially denied the company’s first appeal of the refuse to file letter issued back in February for its New Drug Application (NDA) for Translarna in the treatment of Duchenne muscular dystrophy.
The company intends to escalate its appeal to the next supervisory level of the FDA. This is an iterative process, and the company anticipates that multiple cycles of appeals to progressively higher levels of the FDA may be required.
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It is worth noting that even though the FDA has denied the NDA for Translarna, the drug still has a marketing approval in Europe, so not all is lost. Not to mention Translarna is still undergoing a few other clinical trials for different indications, including nonsense mutation cystic fibrosis, among others.
Over the past week, PTC shares dropped by 48%. The stock closed trading at $6.91 on Friday, with a Thomson Reuters consensus price target of $11.57 and a 52-week range of $5.27 to $35.40.
Rigel Pharmaceuticals
After Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) announced results from its late-stage clinical trial for its treatment of adult chronic/persistent immune thrombocytopenia (ITP), its shares slid on Thursday. Unfortunately, the clinical program for fostamatinib did not achieve a statistically significant difference from the placebo.
However, patients who actually met the primary endpoint benefited substantially and typically did so within weeks of initiating treatment, providing early feedback as to whether fostamatinib may be a viable option for treating their ITP.
In the combined data sets, the frequency of patients who achieved a stable platelet response was statistically superior in the fostamatinib group than in the placebo group in all subgroup analyses: prior splenectomy or not; prior exposure to TPO agents or not, demonstrating that the effect of fostamatinib is consistent across various clinical and treatment backgrounds.
But this was still not enough.
Shares dropped by nearly 27% last week, closing the week at $2.59, with a consensus price target of $6.75 and a 52-week range of $1.88 to $4.38.
Puma Biotechnology
Puma Biotechnology Inc. (NYSE: PBYI) has filed with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. No pricing details were announced, except that the offering would be valued up to $150 million, with an overallotment option for an additional 22.5 million of shares. Citigroup and JPMorgan are acting as lead book-running managers for the offering.
The company intends to use the net proceeds of this offering for the overall development of its drug candidates, including, but not limited to, research and development and clinical trial expenditures, pre-commercialization activities and general corporate and working capital purposes.
Over the past week, Puma Biotech shares retreated 20%. They were last trading at $43.55. The consensus price target is $81.00, and the 52-week range is $19.74 to $94.93.
Skechers
Shares of Skechers USA Inc. (NYSE: SKX) tanked on Friday, following the third-quarter financial report late on Thursday. Although the company might have had a small miss on the bottom line, the real fallout for this stock came from the guidance.
The company said that it had $0.42 in earnings per share (EPS) and $942.4 million in revenue. Consensus estimates had called for $0.47 in EPS and revenue of $942.42 million. In the same period of last year, Skechers posted EPS of $0.43 and $856.18 million in revenue.
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For the fourth quarter, the company expects net sales in the range of $710 million to $735 million, while assuming single-digit increases and comps in its international wholesale business and total retail business, respectively, as well as a single-digit decrease in its domestic wholesale business.
Over the past week, the stock dropped by 17%. Shares were trading at $18.98 on Friday’s close, with a consensus price target of $30.25 and a 52-week range of $18.81 to $34.27.
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