Markets are trading higher on Monday, as HSBC Holdings PLC said in a report earlier today that the markets are poised to remain bullish. However, some stocks are deep in the red today, including Adamis Pharmaceuticals Corp (NASDAQ:ADMP), AbbVie Inc (NYSE:ABBV), ProNAi Therapeutics Inc (NASDAQ:DNAI), Immunomedics, Inc. (NASDAQ:IMMU) and Ocular Therapeutix Inc (NASDAQ:OCUL). Let’s examine the factors hurting these stocks today and see what smart money investors think about these stocks.
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Adamis’ Epinephrine Drug Fails to Get Approval
Adamis Pharmaceuticals Corp (NASDAQ:ADMP)’s stock has plunged by more than 50% today after the company received a Complete Response Letter (CRL) by the US Food and Drug Administration (FDA) regarding its epinephrine drug for severe allergic reactions. The FDA has advised the San Diego based company to increase its human factors and product stress testing in order to get an NDA for the drug. Only four funds from our database were long Adamis Pharmaceuticals Corp (NASDAQ:ADMP) at the end of the first quarter of 2016. Jeffrey Jay and David Kroin’s Great Point Partners owns more than 2.1 million shares of the company, according to its latest 13F filing.
Investors Still Not Impressed By AbbVie’s Cancer Drug
AbbVie Inc (NYSE:ABBV) impressed with the results of its lung cancer drug Rova T on Sunday, but several reports depict that investors are still not happy with the company’s decision to spend a whopping $5.8 billion to buy Stemcentrx, the company which started the production of Rova T. According to the results announced by the company, 11 out of 60 patients experienced shrinkage of tumor, and 41 patients achieved a clinical benefit due to Rova T. However, according to Barclays’ analyst Geoff Meacham, investors were expecting more from the drug. He thinks that Rova T only showed a “modest” incremental median overall survival benefit and added AbbVie’s rival Bristol-Myers Squibb Co (NYSE:BMY) is still a winner in the eyes of investors. AbbVie’s stock has declined more than 4% so far today. From our system, 65 hedge funds had approximately $5.2 billion worth AbbVie Inc (NYSE:ABBV)’s stock at the end of March. Julian Baker and Felix Baker’s Baker Bros. Advisors is one of the biggest shareholders with more than 14 million shares.
On the next page, we will discuss ProNAi, Immunomedics and Ocular Therapeutix.
ProNAi Therapeutics Suspends Lymphoma Drug
ProNAi Therapeutics Inc (NASDAQ:DNAI)’s stock nosedived more than 65% today to reach record lows after the company announced that it would end the development of lymphoma treatment drug following disappointing Phase 2 trial results. In a statement, CEO of ProNAi Therapeutics, Nick Glover, said that the company maintains a strong balance sheet and it will continue to work on its licensed Cdc7 inhibitor, PNT141 and advanced oncology drugs. A total of 12 hedge funds from our database were bullish on ProNAi Therapeutics Inc (NASDAQ:DNAI) at the end of March.
Immunomedics Struggles to Rebound After Embargo Violation Allegations
Immunomedics, Inc. (NASDAQ:IMMU) announced a 24% response rate in assessable patients with metastatic small-cell lung cancer (SCLC) for its lead investigational antibody-drug conjugate Sacituzumab Govitecan. The stock rose in premarket trading today following the announcement, but has lost more than 12% since the market opened. Shares of Immunomedics went down sharply on Friday after its presentation at a conference held by the American Society of Clinical Oncology (ASCO) was cancelled amid allegations that the company had violated conference’s embargo rules. Samuel Isaly’s OrbiMed Advisors is one of the 13 hedge funds from Insider Monkey’s database that reported stakes in Immunomedics, Inc. (NASDAQ:IMMU) as of the end of the first quarter of 2016.
Ocular Therapeutix’s Conjunctivitis Drug Fails to Meet Primary Endpoint
Ocular Therapeutix Inc (NASDAQ:OCUL)’s stock has slid by around 42% so far today, after the company announced that second Phase 3 trial of Dextenza, its drug for the treatment of chronic allergic conjunctivitis failed to achieve its single primary endpoint. In a statement, Amar Sawhney, CEO of Ocular Therapeutix, said that the company is disappointed with the outcome of the results, but plans to meet with the FDA to discuss the results and chalk out an “appropriate path” towards the development of DEXTENZA. Only seven investors followed by Insider Monkey had stakes in Ocular Therapeutix Inc (NASDAQ:OCUL) at the end of the first quarter, down from nine funds a quarter earlier.