Good data, bad beat

Yesterday, Myovant Sciences told the world that its treatment for uterine fibroids succeeded in the first of two late-stage trials, an expected but nonetheless positive piece of news. And then it lost 25% of its value on the stock market.

That’s probably because Myovant’s drug, called relugolix, worked just about as well as a treatment from AbbVie that will almost certainly make it to the market first. And, with AbbVie being the multibillion-dollar behemoth behind Humira, the much smaller Myovant might struggle to compete.

What’s odd is that Myovant’s study results were in line with what analysts had predicted, and none seemed surprised by the data. That raises the question: What was Wall Street expecting?

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