At least one biotech trope is pandemic-proof
Biotech investors have a habit of grasping at straws when it comes to good news for small companies. Or at least that’s among the more sensible explanations for the phenomenon in which companies’ stock prices spike after they cancel appearances at banking conferences. The thinking, however magical, is that they must be deep in negotiation for a major buyout that will line shareholders’ pockets, a wish that persists despite mostly going unfulfilled.
Nowadays, with banking conferences joining the many normal activities on hold in the name of coronavirus containment, one would think conference-cancellation trading would come to a halt. But as Iovance Biotherapeutics demonstrated yesterday, one would be wrong.
The company canceled a webcast appearance hosted by Jefferies, and then its stock price rose more than 30%. Back when investor meetings could be safely held in person, this same thing happened to BioHaven, Sarepta Therapeutics, Acadia Pharmaceuticals, and ZioPharm in recent years. As a reminder, in each case the culprit was something benign like a scheduling conflict, not 11th-hour work on a megamerger.
Nowadays, with banking conferences joining the many normal activities on hold in the name of coronavirus containment, one would think conference-cancellation trading would come to a halt. But as Iovance Biotherapeutics demonstrated yesterday, one would be wrong.
The company canceled a webcast appearance hosted by Jefferies, and then its stock price rose more than 30%. Back when investor meetings could be safely held in person, this same thing happened to BioHaven, Sarepta Therapeutics, Acadia Pharmaceuticals, and ZioPharm in recent years. As a reminder, in each case the culprit was something benign like a scheduling conflict, not 11th-hour work on a megamerger.
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