Smart Money Don’t Bet on Three Biotech Stocks that Slumped Today and You Should Not Too

Finally, there is Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), which slid the most, losing more than 78% in the intraday trading on Wednesday, which erased all of the stock’s gains since the beginning of the year. Similar to the previous two companies mentioned in this article, the main reason for the decline was the results of Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH)’s IGNITE2 phase 3 clinical trials of eravacycline, which did not meet its primary endpoint. The drug was administered as an IV to oral transition therapy for the treatment of complicated urinary tract infections and showed statistical non-inferiority compared to Johnson & Johnson (NYSE:JNJ)’s antibiotic levofloxacin. On the back of the news, 10 analysts downgraded the stock, including SunTrust, which set a ‘Neutral’ rating and cut the price target to $12.00 from $54.00, and Nomura, which reduced the rating to ‘Neutral’ from ‘Buy’ and sliced the price target to $10.00 from $54.00.

Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) was the most popular stock among all three at the end of June, as 21 funds disclosed holding $205.76 million worth of stock in their latest 13F filing, which represented 12% of the company. Among them, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management was the largest shareholder of Tetraphase, holding 893,100 shares, followed by Steve Cohen‘s Point72 Asset Management, which boosted its position by nearly a threefold to 626,200 shares.

Disclosure: none