Why Repros Therapeutics Shares Got Slaughtered

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 clinical-stage biotech company Repros Therapeutics were mauled today, losing as much as 36% at one point, following an update to its top-line data announcement for Androxal, its secondary hypogonadism treatment.

So what: Wall Street had been expecting Repros to report its top-line, late-state finding on Androxal by the second quarter of this year. Today's news announcement pushed that data back a full quarter -- although, assuming the data is favorable, Repros sees its new drug application filing unchanged and on pace for mid-2014. The real concern/problem (call it what you will), is that Repros' study noted one site of patients was markedly different from the other 16 sites when reviewing the data. This site, which holds 40 of the 151 patients, indicated results that were as good if not better than the other 16 sites -- which begs the question of whether this is a special population, to be treated differently, or if it's still considered part of the general population.

Now what: For lack of a better term, I'd call this a "hitch in Repros giddy-up!" In true Murphy's Law fashion, the exception just had to be in what looks like one of Repros' largest study groups, and its success could undermine the effectiveness of the drug to the general population if this subgroup is determined to be special. With so many monkey wrenches now being thrown into the equation I don't think you can do anything except wait patiently for the final data in the third-quarter. In the meantime, I'm throwing Repros in the penalty box!

Craving more input? Start by adding Repros Therapeutics to your free and personalized watchlist so you can keep up on the latest news with the company.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Why Repros Therapeutics Shares Got Slaughtered originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.