3 Horrendous Health-Care Stocks This Week: VIVUS, Inc. (VVUS), Accretive Health, Inc. (AH), Dynavax Technologies Corporation (DVAX)

Page 1 of 2

While the federal government now gets to deal with “massive” budget cuts of around 2.3% of total annual federal spending put into law by President Obama and Congress, some investors are left wishing they could be so lucky after the past week. Here are three horrendous health-care stocks for the week with losses that make the levels of sequestration cuts sound like a great deal.

VIVUS, Inc. (NASDAQ:VVUS)No help for Heplisav
Shares of Dynavax Technologies Corporation (NASDAQ:DVAX) plunged 33% this week after the Food and Drug Administration rejected approval for hepatitis B vaccine Heplisav. This wasn’t really a huge surprise, though, since the FDA’s advisory committee recommended against approval back in November.

The roadblock relates primarily to safety of the vaccine. Dynavax announced that the FDA’s response indicated that further evaluation was needed to evaluate safety and that it had concerns that Heplisav could cause rare autoimmune diseases. The agency also needed additional information about the quality control processes for manufacturing the vaccine.

Is Dynavax Technologies Corporation (NASDAQ:DVAX) now dead in the water? Maybe not. The company stated that the FDA “indicated its willingness to continue discussions regarding a more restricted use of Heplisav.” Dynavax thinks that it might be able to move forward with a more restricted approval of the drug, perhaps limited to adults over age 40 or patients with chronic kidney disease, without addidtional clinical studies.

No hurry, much worry
Accretive Health, Inc. (NYSE:AH) announced this week that it was postponing the release of its fourth-quarter and full-year financial results. The market fretted over the delay, sending shares down 23% for the week.

The company explained the reason for the postponement was that it needed to evaluate how revenue is recognized for revenue cycle management agreements. Accretive didn’t think that total revenue would be affected, but the timing in which the revenue was recognized might be.

If adjustments aren’t too extensive, Accretive Health, Inc. (NYSE:AH) should recover over time from this week’s meltdown. You have to wonder, though, how a company that is in the business of managing revenue cycles for its customers can mess up its own revenue. Accretive’s competitors will probably raise that very question for quite a while.

Waiting for weight pill success
Investors in VIVUS, Inc. (NASDAQ:VVUS) will have to wait longer for a turnaround in the stock’s decline. Shares fell 18% this week, adding to a long slide that began last summer.

VIVUS released its fourth-quarter results on Monday. Unfortunately for its shareholders, those results weren’t too great. VIVUS, Inc. (NASDAQ:VVUS) lost $0.56 per share, worse than the consensus analyst estimates of $0.44 per share. Analysts were expecting revenue to be around $4 million, but actual revenue came in far lower at $2 million.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!