If there is such a thing as a poster child for volatility in the stock market, the biotech sector would likely take top honors.
Biotech stocks are unique. While stocks in other sectors are typically valued based on their past performance and future earnings potential, the majority of biotech stocks don’t have a cent in recurring revenue. Instead, biotech stocks are (typically) valued by Wall Street and investors based on the peak annual sales potential of their key pipeline products. This valuation allows some degree of emotion and opinion to come into play, which can lead to wild swings in biotech stock share prices to both the upside and the downside.
On the trading floor, shares of Cytori Therapeutics Inc (NASDAQ:CYTX) dropped 2.86% to close at $0.404. The $62.80M company on August 6, 2015 announced its second quarter financial results.
Cytori continued to reduce its operating cash burn, spending approximately $4.8 million in the second quarter 2015, compared to $9.2 million in Q2 2014. Second quarter 2015 net income allocable to common stockholders was $4.5 million (or a net loss of $8.7 million and $0.06 per share when excluding a non-cash charge of $13.1 million related to the change in fair value of warrant liabilities) compared to $11.8 million (or $0.15 per share) for the same period in 2014. Cytori ended the second quarter of 2015 with $23.8 million of cash and cash equivalents.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) closed at $37.88 with a decrease of 0.32%. The $3.83B company on August 6, 2015 announced its unaudited financial results for the second quarter ended June 30, 2015.
ACADIA reported a net loss of $39.4 million, or $0.39 per common share, for the second quarter of 2015 compared to a net loss of $21.5 million, or $0.22 per common share, for the second quarter of 2014. Net losses for the second quarters of 2015 and 2014 included $7.5 million and $4.3 million, respectively, in non-cash stock-based compensation expense. For the six months ended June 30, 2015, ACADIA reported a net loss of $79.8 million, or $0.80 per common share, compared to a net loss of $39.3 million, or $0.41 per common share, for the comparable period of 2014. Net losses for the six-month periods ended June 30, 2015 and 2014 included $22.0 million and $7.5 million, respectively, in non-cash, stock-based compensation expense. At June 30, 2015, ACADIA’s cash, cash equivalents and investment securities totaled $270.8 million, compared to $322.5 million at December 31, 2014.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) ended at $136.88 by losing 0.36%. The $33.61B company on July 29, 2015 reported consolidated financial results for the quarter ended June 30, 2015.
Total revenues for the second quarter of 2015 were $166.1 million compared with $138.4 million in total revenues for the second quarter of 2014. Second quarter 2015 revenues were comprised primarily of $154.9 million in KALYDECO net product revenues and an aggregate of $11.2 million in net product revenues from INCIVEK, royalty revenues and collaborative revenues.
For the second quarter of 2014, Vertex reported $113.1 million in net product revenues from KALYDECO and an aggregate of $25.4 million in net product revenues from INCIVEK, royalty revenues and collaborative revenues.
Vertex’s second quarter 2015 net loss was $188.8 million, or $0.78 per diluted share, including net charges of $58.2 million. Vertex’s second quarter 2014 net loss was $159.4 million, or $0.68 per diluted share, including net charges of $17.7 million.
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