Axovant Sciences Ltd (AXON) Shares Plummet on Pfizer Drug Trial Halt

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It’s unusual to see a pharmaceutical stock sell off on negative news from another company’s drug trial, but today that’s just what’s happening. Shares of Axovant Sciences Ltd (NYSE:AXON) are down sharply in morning trading after Pfizer Inc. (NYSE:PFE) has reportedly halted a phase II study related to one of their Alzheimer’s drugs known as PF-05212377.

“The study was terminated October 23, 2015 as pre-specified, interim analysis futility criteria were met. The termination was not due to safety concerns,” stated the company’s website.

How does this relate to Axovant Sciences Ltd (NYSE:AXON), you may ask? Axovant has its own Alzheimer’s study for RVT-101 in phase III trials, which utilizes the same mechanism as that of Pfizer’s drug. The thinking is that if Pfizer’s drug is no good, than there is a good chance that Axovant Sciences’ (NYSE:AXON) drug may also have issues meeting its goals.

The stock has fallen 22.82% or $3.8 following this negative news, hitting $12.85 per share. About 489,661 shares traded hands or 30.55% up from the average. AXON has declined 14.53% since June 26, 2015 and is downtrending. It has underperformed the S&P500 by 5.66%.

From a total of 3 analysts covering Axovant Sciences (NYSE:AXON) stock, 2 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $35.0 while the lowest target price is $8. The mean of all analyst targets is $21.50 which is 67.32% above today’s ($12.85) stock price. Axovant Sciences was the topic of 3 analyst reports since September 25, 2015 according to the firm StockzIntelligence Inc. H.C. Wainwright initiated shares on January 8 with a “Buy” rating. Chardan Capital Markets maintained AXON stock in a recent report from September 25 with a “Sell” rating.

Axovant Sciences Ltd., formerly Roivant Neurosciences Ltd., is a clinical-stage biopharmaceutical company. The company has a market cap of $1.68 billion. The Firm is focused on the acquisition, development and commercialization of therapeutics for the treatment of neurodegenerative disorders. It currently has negative earnings. The Firm develops RVT-101, a product candidate for the treatment of Alzheimer’s disease and other forms of dementia.

#focuskw=’Axovant Sciences Ltd (NYSE:AXON)’##metadesc=’It’s unusual to see a pharmaceutical stock sell off on negative news from another company’s drug trial, but today that’s just what’s happening. Shares of Axovant Sciences Ltd (NYSE:AXON) are down sharply in morning trading after Pfizer Inc. (NYSE:PFE) has reportedly halted a phase II study related to one of their Alzheimer’s drugs known as PF-05212377. “The study was terminated October 23, 2015 as pre-specified, interim analysis futility criteria were met. The termination was not due to safety concerns,” stated the company’s website.How does this relate to Axovant Sciences Ltd (NYSE:AXON), you may ask? Axovant has its own Alzheimer’s study for RVT-101 in phase III trials, which utilizes the same mechanism as that of Pfizer’s drug. The thinking is that if Pfizer’s drug is no good, than there is a good chance that Axovant Sciences’ (NYSE:AXON) drug may also have issues meeting its goals. ‘##metarobot=’index’##newskw=’Zafgen Inc positive news,Zafgen Inc – (NASDAQ:ZFGN),NASDAQ:ZFGN Analyst rating analysis,Stock Analysis,Outlook and potential,ZFGN Price change and trend,ZFGN stock update’##sitemap=’include’##skipsocial##stockticker=’NYSE:AXON’#

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