Recently, shares of Prosensa (NASDAQ:RNA) dropped 70% after announcing the negative outcome from its phase III study of an experimental drug, Drisapersen. Meanwhile Sarepta Therapeutics (NASDAQ:SRPT) has seen a significant increase in their market capitalization.
Comparing the price of Prosensa to its competing company, Sarepta Therapeutics, we find that there seems to be a strong negative correlation between the failure of Prosensa to rise in Sarepta's stock price.
Find out why it is a bad idea to buy Sarepta based on Prosensa's failure.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.