Medivation Shares Plunged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drug developer Medivation (NAS: MDVN) were getting pummeled by investors today, losing as much as 10% in intraday trading on lighter-than-average volume.

So what: Medivation announced its second-quarter results after the market closed yesterday. For the quarter, the company reported a loss per share of $0.27 versus a loss in last year's second quarter of $0.21. Analysts were expecting a per-share loss of $0.26.

Now what: Though they're not entirely unimportant, the story with small biopharma companies like Medivation isn't the quarter-to-quarter results. Rather, the key is the company's long-term prospects for developing its drugs and getting them approved and on the market. With that in mind, I think most of the selling action today stems from the pressure on small caps broadly rather than a specific reaction to Medivation's quarterly report.
 

Want to keep up to date on Medivation?Add it to your watchlist.



At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferdoes not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter@KoppTheFoolorFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners