Market Overview

Wall Street Analysts Abandon Tetraphase One Day Too Late


Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Tetraphase Pharmaceuticals Inc (NASDAQ: TTPH) shares were trading lower by $35.30 (78 percent) at $9.49 in Wednesday's session. The reason for the sharp decline is a report that top-line results from IGNITE2 phase 3 clinical trial of Eravacycline in CUTI did not meet primary endpoint.

After ending Tuesday's session at $44.78, it immediately swooned to $8 before staging a rebound briefly into the $10 handle. For as much volatility the issue had following the announcement, it has been confined to a fairly narrow range during the regular session, peaking at $10.24 and has found support at $9.

The sharp retreat gives back of all the gains in the issue since May 2014, when it bottomed at $8.35 on its way to its all-time high from July at $52.90.

It should be noted that in a major "after the fact" move, nine Wall Street firms have downgraded the issue.

Today's decline is taking place on heavier than average volume. With three hours remaining, over 18 million shares have traded compared to its 20-day average of 1.5 million.

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