There were numerous stocks that saw severe selling pressure on Friday, but these four stocks saw increased action on the downside with notable catalysts.
Durect (NASDAQ:DRRX) & Pain Therapeutics (NASDAQ:PTIE) – These were the two biggest losers in the whole market on Friday as they fell 31% and 43%, respectively, after the FDA issued a Complete Response Letter for their Remoxy drug. Pfizer (NYSE:PFE), the drug’s sponsor, is working to evaluate the issues described in the Complete Response Letter and plans to have further discussions with FDA around them. Remoxy is an investigational drug that is an unique, controlled release formulation of oxycodone for moderate-to-severe chronic pain designed to reduce potential risks of unintended use. Approximately 50 million Americans suffer from persistent pain each year, according to the American Pain Foundation.
STR Holdings (NYSE:STRI) – The stock dropped over 14% after it gave downside Q2 guidance. The driver of their weaker Q2 guidance was their solar business. The company said that it now expects its solar business to generate net sales of $68 to $69 million, compared to previous guidance of $74 to $78 million. Management said that due to the uncertainty of incentive programs in Italy and Germany, which took longer to resolve than anticipated, lower solar module demand has resulted in excess inventory and overcapacity throughout the solar supply chain. Late in the second quarter, these industry-wide conditions caused its customers to slow their build rates and reduce purchase orders issued to STR. The firm added that the slowdown appears to be broad-based, rather than customer-specific.
Micron (NASDAQ:MU) – Although a lot more mainstream than the other 3 stocks on the list, the company had a huge tumble on Friday, 14%, after it announced Q3 results. Micron missed both bottom and top-line estimates. It was not all bad news as the company managed to boost its gross margin to 22% from 19% in Q2 primarily to decreases in manufacturing costs. Revenue was lower from both DRAM and NAND products as the former suffered from a decrease in sales volume and the latter a decrease in ASPs.