Boston, MA 07/09/2014 (wallstreetpr) – The uncertainty in the biotech sector went down with Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) in the last session, putting it among the most active losers of the day. The stock slumped nearly 4 percent to $6.06 per share. The stock is down more than 11 percent this year.
The U.S. biotech industry is soaked in uncertainly has players consolidate or seek to move corporate headquarters outside the country to take advantage of tax havens out there amid widespread loss of marketing exclusivity on key products.
Sector weakness appears to be a logical reason behind the downfall of Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) and its peers in the sector because the company has not issued an adverse announcement in recent weeks.
TherapeuticsMD Inc (NYSEMKT:TXMD) is cited in Wall Street as the Next Big Deal because of its promising solution in women’s health. The company’s pipeline includes a treatment for menopause hormone replacement.
Wall Street believes that a successful development of the drug may draw the attention of Big Pharma seeking to acquire the company, especially with the heated deals in healthcare industry.
Several merger and acquisition deals are happening in the pharmaceutical space as players try to fix potential revenue loss because of eminent loss of patents on bestselling drugs.
Analysts at FBR are the latest to post a bullish note on the stock of TherapeuticsMD. They have an Outperform rating on the stock and a price target of $34 per share. The latest price target is way beyond the consensus average of $13.5.
Shares of TherapeuticsMD Inc (NYSEMKT:TXMD) are trading in the range of $5.47 apiece, and they are up nearly 110 percent within the past 12 months.
After achieving a lofty valuation because of its success IPO, GoPro Inc (NASDAQ:GPRO) is undergoing a correction. As such, conservative investors may have to wait until the volatility in the stock dies down and valuation normalizes to buy the stock. Some good news from the company such as the monetization of the media sharing products may also squeeze out short interests that have taken the center stage in the stock.
