What’s The Deal With These Sinking Stocks?

Cempra Inc (NASDAQ:CEMP) is down by 9.2% as investors continue to debate the implications of the company’s phase 3 clinical trial results for solithromycin. Solithromycin is Cempra’s potential treatment for community acquired bacterial pneumonia. The phase 3 clinical trials showed non-inferiority to moxifloxacin, but also showed a higher incidence of side effects. The greater prevalence of side effects limits potential demand for the drug, although it doesn’t necessarily preclude the drug from coming on to the market and having some success.

Hexcel Corporation (NYSE:HXL) is off by 7.5% today after the company missed analyst earnings estimates by $0.04 per share and revenue expectations by $13.69 million. Guidance was a bit soft, with management expecting full year revenue of $1.84 billion-to-$1.86 billion, down from the previous $1.85 billion-to-$1.9 billion guidance, while full year adjusted EPS estimates were updated to a range between $2.28 and $2.34, down from the previous $2.33-to-$2.43. Management did, however, authorize an additional $250 million in share repurchases. The strong dollar and weak macro economic environment weighed on results.

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