Big pharma names Peregrine Pharmaceuticals (NASDAQ:PPHM) and Questcor (NASDAQ:QCOR) got a rude awakening to the work week as shares of both took a hit Monday morning.
Peregrine, for one, fell on the news that positive data from a drug study — which sent shares soaring a couple weeks back — was actually unreliable.
The lung cancer drug was in the mid-study stage and looked promising, but the company is now citing “major discrepancies” in the distribution of trial supplies.
In pre-market trading, the stock lost nearly 85%.
Questcor, on the other hand, announced that it is being investigated by the U.S. government. It fell around 25% in pre-market trading.
For Questcor, the tumble added insult to injury. The company also plunged last week when insurer Aetna (NYSE:AET) said it would limit coverage of the company’s top-selling drug. The resulting hit was its biggest drop in 20 years, Bloomberg reports.
Even before then, concerns were being raised about the company’s marketing strategy for the orphan status drug and a possible generic threat to it as well.
On top of that, shares of both companies could be ripe for even more punishment when the opening bell rings.