Here are 5 stocks that were big losers last week, led by a biotech stock that reported disappointing Q3 trial results.
Nabi Biopharmaceuticals (NABI) tumbled 63% after it announced that NicVAX (Nicotine Conjugate Immunotherapeutic) did not meet its primary endpoint in the company's first of two confirmatory Phase III clinical trials. A preliminary assessment of the trial data showed that subjects treated with NicVAX quit smoking at a similar rate of approximately 11%, compared to subjects who received placebo. As in previous trials, NicVAX was well-tolerated with a clinically acceptable safety and tolerability profile. The study was a double-blinded, placebo-controlled trial of 1,000 patients. The primary endpoint of the study was the abstinence rate for 16 weeks ending at 12 months. Abstinence was evaluated by self-reported cigarette consumption and biologically verified by exhaled carbon dioxide. Secondary endpoints included the abstinence rate at various time intervals, safety and immunogenicity, and the effect of NicVAX on withdrawal symptoms, cigarette consumption, smoking satisfaction and nicotine dependency.
NetSol Technologies (NTWK) closed 34% lower after it provided a weak FY11 outlook. NetSol anticipates total revenue for FY11 will be in the range of $35 million to $36 million. Additionally, the company believes earnings per diluted share will be in the range of $0.11 to $0.13. Previously, NetSol said that it expected total revenue for the fiscal year to be in the range of $40 million to $44 million, and per share earnings to approximate $0.18 to $0.23. The company attributed the shortfall to recent geopolitical issues that contributed to a longer-than-expected sales cycle.
Orsus Xelent Technologies (ORS) fell 29% after it said that it received a delisting notice. The company reported that on July 14, it received a letter from the NYSE Amex staff indicating it is no longer in compliance with the exchange's continued listing standards and its securities are therefore subject to being delisted from the exchange. In response to this, the company said it is taking the steps necessary to request a hearing before a committee of the Exchange to appeal the staff determination. The notification from the exchange indicated the company was not in compliance with Section 1003(a)(iv) of the exchange's company guide with respect to its financial condition, which makes it questionable in the opinion of the exchange as to whether the company will be able to continue operations or timely meet its obligations.
Neostem (NBS) tumbled 26% after the company announced and priced a 13.75 million units offering at $1.20 a share. Each unit consists of one share of common stock and a warrant to purchase 0.75 of a share of common stock with a per share exercise price of $1.45. The company expects to receive $16,500,000 in gross proceeds, prior to deducting underwriting discounts and commissions and offering expenses payable by the company. These funds will be used for working capital purposes, including research and development of cell therapeutic product candidates, expansion of business units and other general corporate purposes.
Travelzoo (TZOO) sank 23% after it announced disappointing Q2 results. The company said that revenue was $37.6 million, an increase of 34% y/y. Operating profit was $7.6 million, up 29% y/y. Net income was $4.9 million, with EPS of $0.30, up from $0.20 in the prior-year period. Analysts forecast EPS of $0.38. The company added that it ran a television advertising test during the quarter, which negatively impacted earnings per share by approximately $0.07.