Friday ended with two stocks slumping over 13%: Bluebird bio (BLUE) fell 13.29% by the closing bell, while Ariad Pharmaceuticals (ARIA) fell 14.8% on the day. The two biotech stocks fell for different reasons.
Bluebird bio Inc.
The company released an update on its research and development. LentiGlobin’s manufacturing process has been changed, and this change allows the gene therapy to increase the number of cells produced.
The change should result in a higher number of patients being able to be cured as a result.
An issue with the release is that a lot of the data provided is based off of the old process and not since the company changed the manufacturing process. This provides little insight into the company’s current standing.
The release wasn’t unimpressive, and the stock’s selloff is likely due to the initial influx of buying prior to the update.
More efficient manufacturing will be good for the company in the long-term.
Ariad Pharmaceuticals
Ariad is under scrutiny after raising their leukemia drug prices for a fourth time this year. Politician Bernie Sanders tweeted about the company’s fourth price hike, leading to higher scrutiny and fear from investors.
The company’s stock price fell 14.8% as a result on Friday.
Sanders tweeted about the company raising the drug’s price to almost $199,000 per year for the treatment.
Iclusing, the drug, is able to treat chronic myeloid leukemia as well as Philadelphia chromosome positive acute lymphoblastic leukemia.
The biopharma stock only produces Iclusing, and sales increased 50% year-over-year in the second quarter. The company and its investors fear that the upcoming elections will result in regulating drug prices in the future.
Regulations for drug prices have come into the spotlight. Several companies have been found to raise drug prices multiple times this year alone, leading to many patients unable to seek treatment.
