As Axovant Gets Clobbered, Could Investors be the Biggest Losers?

September 26, 2017
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One of the risks investors take when purchasing stock in medicine or pharmaceuticals is the reliance those sectors have on effective trials and approval. Bad news from either of these fronts can have a massive impact on the performance of one of these companies.

That is exactly what happened with Axovant. Business Insider reports that:

Axovant, a company founded by the 32-year-old Vivek Ramaswamy, just failed a key late-stage trial for its Alzheimer’s drug. The company was down as much as 75% on Tuesday in premarket trading.

This drop puts Axovant near the top of this year’s biggest losers. Despite reports that  “nearly all Alzheimer’s drugs fail clinical trials; only four drugs have been approved to treat the symptoms of the disease,” the company’s future was based heavily on the success of this particular drug. Investors who didn’t get out before today likely watched their investment go up in smoke.

Investors in the field should take this lesson to heart when considering other companies that are developing drugs for Alzheimer’s; weigh the risks appropriately before jumping on board.

To find out more about this story, go to businessinsider.com. For more market updates such as these, sign up for our free newsletter.

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