Just last week, the company announced publication of results from clinical studies that showed experimental drug ganetespib could offer a novel way of preventing cancerous tumors from growing new blood vessels. Synta Pharmaceuticals Corp. (NASDAQ:SNTA) also released positive findings in June from an interim survival analysis in an ongoing phase 2/3 trial of the drug as a second-line treatment of non-small cell lung cancer. Perhaps some investors are now apprehensive about seeing the company follow up with less positive findings with its update next week.
“S” marks the spot
Which of this week’s health-care stinkers could lead to hidden treasure for intrepid investors? I’d cross Sequenom, Inc. (NASDAQ:SQNM) off the list. The stock already ranks as one of the worst-performing biotechs of the past decade. Unfortunately, I don’t see it improving anytime in the near future.
Sarepta Therapeutics Inc (NASDAQ:SRPT) and Synta Pharmaceuticals Corp. (NASDAQ:SNTA), though, could easily be winners over the long run. While I’m not sure if the FDA will approve eteplirsen based only on phase 2 data, I think the drug will ultimately gain approval. It’s only a matter of time, in my view, before shares rebound significantly. I like Synta Pharmaceuticals Corp. (NASDAQ:SNTA)’s prospects with ganetespib, also.
While there is plenty of risk with both stocks, I don’t think either will remain horrendous forever. Sometimes on biotech treasure maps, “S” marks the spot.
The article 3 Horrendous Health-Care Stocks This Week originally appeared on Fool.com is written by Keith Speights.
Fool contributor Keith Speights and The Motley Fool have no position in any of the stocks mentioned.
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