For the second time in two weeks, Catalyst Pharmaceuticals stock dived substantially, although the drug maker was at a loss to explain the latest drop.
Shares were down as much as 18% on Monday on six times the normal trading volume, prompting the company to issue a statement before the stock market closed to say it is “not aware of any information” that would cause such a decline. Catalyst also reiterated remarks made last month that it believes it has “sufficient resources” for its current activities through next August.
I don’t know about the company that is the subject of this article, but in general there is a trend on Wall St of predatory shorting of biotech stocks to prevent them from raising the money that they need for continued operations. This results in high drug prices for everyone (the money lines the pockets of the short traders, and makes it more expensive to finance drug development). Sometime STAT should write an investigative article about this practice by traders and hedge funds and how it leads to high drug prices.
Comments are closed.