Yesterday, ELN and WYE were massacred, by Wall Street standards, because of a drug that was being developed for Alzheimer’s disease and failed in phase II trials. The experimental drug was said to “only help half of patients and was linked with a brain-swelling side effect” by Bloomberg.com. (You can read more about it here: http:\/\/www.bloomberg.com\/apps\/news?pid=20601103&refer=news&sid=aseKG.hyyRkw) <\/p>\n
In the aftermath, ELN was hit over 40% to below $20 and WYE absorbed a little over a 10% loss. And looking at those numbers now, I clearly recall during the trading day today how one of the companies released a statement reassuring investors everything will be okay, probably hoping to salvage some loss or spur a buyer to step up. That absolutely did not happen. As a matter of fact, specific levels of support became clear targets that were eventually hit out. And nearing the end of the trading day, I recognized the situation as one of those scenarios where, me as a trader wanted to take a short position, but not with very good reason. Because the general motif of the stock (ELN, specifically) was down, the only question was how long would it take for the selling to push the stock down further and what would happen in that time that would effect my intial position. <\/p>\n
So, maybe you, as the reader of this quick blurb, and someone who may be effected by the movement of one of these stocks in the future can better answer this question, or at least voice your opinion. Is it really that bad, for Wyeth and Elan? Are these companies not working to further their research and perfect their drug? One of these companies almost lost half their value. And yes, investors were looking forward to a succesful trial and the possible 8 billion dollar payout (so I read) that a successful and marketable drug might of produced in sales. But is all of this over, done and not possible for Wyeth and Elan?<\/p>\n
Please do respond to this question. First 15 responses get a beer on SMB. <\/p>\n
Afterwhich, I will respond with my opinion. <\/p>\n","protected":false},"excerpt":{"rendered":"