Agios Pharmaceuticals, Inc (Nasdaq: AGIO) Plunges After-Hours on FDA News

Market Mover Alert! Agios Pharmaceuticals, Inc – Nasdaq: AGIO

Agios Pharmaceuticals Inc., based in Cambridge, MA, released an update on its PKR program and stocks plunged in after-hours trading. Traded on the Nasdaq under ticker symbol AGIO, the shares closed the day at $55.94 but after-hours activity have seen the shares trade as low as $44.32.

Agios develops medicines to treat cancer and rare genetic metabolic disorders. Boston Children’s Hospital, in collaboration with Agios, is conducting a Natural History Study to better understand the symptoms and complications of PK deficiency, identify patients and treatment centers, and capture other clinical data, including quality of life measures and genetic information. However, Agios Pharmaceuticals today announced that it is no longer developing its second pyruvate kinase-R (PKR) activator, AG-519, and withdrew its investigational new drug application yesterday following a verbal notification of a clinical hold from the U.S. Food and Drug Administration.

From the press release:

We share the FDA’s commitment to patient safety and believe this is the right decision to ultimately help people with PK deficiency,” said David Schenkein, M.D., chief executive officer at Agios. “As the lead compound in our PKR program, AG-348 has demonstrated clear proof of concept with robust, rapid and sustained increases in hemoglobin in patients with PK deficiency. Based on our clinical experience with DRIVE PK, we are developing a registration path for AG-348 in adult PK deficiency patients and plan to discuss this strategy with regulators.”

Three investment bank analysts cover the stock with a rating of “Buy” or better and price targets from $65 – $75. In 2012 sales were a mere $21.8 million but in 2015 sales topped $59.1 million. After-hours volume has been heavy – over 500,000 shares traded at the time of this writing.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol AGIO
Last Price a/o 5:10 EST  $             45.28
Average Volume 750,000
Market Cap $2.27 billion
Sales $53.5 million
Shares Outstanding 40.56 million
Share Float 40.56 million
Shortable Yes
Optionable Yes
Inside Ownership 0.40%
Short Float 13.38%
Short Interest Ratio 7.24
Quarterly Return 20.00%
YTD Return -13.83%
Year Return 0.96%

Author: James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance.

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