Market Overview

Meet The Biopharma Stock That Lost 34% Last Week

Share:
Meet The Biopharma Stock That Lost 34% Last Week

Friday wasn’t a particularly good day for biotech stocks.

Although there were some bright spots with names such as Amgen, Vertex and Incyte, many names were in the red on a day when the overall market had performed very well.

One name in particular that got drilled viciously was Aegerion Pharmaceuticals, Inc. (NASDAQ: AEGR).

The company posted a huge earnings miss and offered less than stellar guidance.

To make things worse, the company’s stock was downgraded from Buy to Hold by both Jefferies and Deutsche Bank.

Related Link: Illumina's Break Could Be Investor's Gain

So, what now with the stock?

Take a look at the chart of Aegerion Pharmaceuticals below.

Investors had probably hoped that Aegerion’s last six months of price action was the formation of a base that would ultimately lead to higher prices. This wasn't the case.

The stock lost almost 41 percent of its value on Friday on volume of 18 times the norm. Once the news on Aegerion came out, investors and traders wanted nothing to do with the stock.

The stock held $20 on Friday, which was a key area of support back toward the end of 2012 before the stock started its meteoric rise.

A break much lower than the $20 level could very well mean a continued fall for Aergerion.

Aegerion closed Monday at $20.93, up 3.6 percent.

Investors should conduct their own due diligence before investing in any stock, but after such a serious drop Aegerion may be somewhat unpredictable and most likely volatile.

Posted in: Long Ideas Short Ideas Health Care Technicals Trading Ideas General Best of Benzinga