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 biotech Inhibitex (NAS: INHX) are in critical condition today, with shares shedding as much as 37% of their value, after rival drugmaker Pharmasset (NAS: VRUS) reported safety concerns with an experimental drug.
So what: The drug in question, code-named PSI-938, is an experimental hepatitis C drug currently in clinical trials. The news is rattling shareholders of Inhibitex, which also offers a hepatitis C drug, INX-189, that shares some similarities.
Now what: Inhibitex shares are climbing higher off the lows of the day, currently down "only" 21% as investors realize the knee-jerk reaction at the open may have been unwarranted. Deutsche Bank also came out this morning to defend the company, with analysts saying that there are more differences in the two drugs than similarities. Due to those differences, Deutsche Bank believes the safety characteristics of the drugs will also differ.
Interested in more info on Inhibitex? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.