Ariad Pharmaceuticals, Inc. (ARIA), Infinity Pharmaceuticals Inc. (INFI), Oncothyreon Inc (USA) (ONTY): What’s Moving These Biotech Stocks?

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This is a typical trick in biotechnology after a failed trial, as a company will try and sell “subgroup data” over a larger failed study. When you think about it, searching through hundreds of patients to find a few who had both a disease similarity and the greatest overall outcome might be easy, and definitely can keep a biotechnology company alive. However, I see no real upside or value in shares of this company, and believe it is a sell after a failed “L-BLP25” study.

Conclusion

The biotechnology investment game in a risky business, as a stock can go from gains to losses in the blink of an eye. Sometimes the movement is an overreaction, and you can use the losses to your advantage (as explained here), but sometimes those large losses are an indication of what’s to come. With each of these three stocks in particular, I don’t see much upside, as there seem to be many questions surrounding each company’s future. However, the good thing about biotechnology is that looks can be deceiving, therefore perform your own due diligence and create your own opinions of these high-profile stocks, and you might find a golden opportunity.

The article What’s Moving These Biotech Stocks? originally appeared on Fool.com and is written by Brian Nichols.

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