Worst IPOs #1: Prosensa (RNA)
Prosensa (RNA) pulled off a successful IPO in June, with the stock surging 48% on its first day of trading.
But things turned for the worse a few months later. Prosensa’s drug for Duchenne muscular dystrophy failed to meet requirements in a Phase III trial. As a result, RNA stock plunged 70% in a single day.
That doesn’t necessarily mean the company is doomed, though. Prosensa will work with its partner GlaxoSmithKline (GSK) to analyze the clinical findings to see if there is some hope. Although, Wall Street still isn’t convinced, as an analyst from JP Morgan pointed out in a recent research report, downgrading RNA stock from “overweight” to “neutral.”
But that 70% drop makes RNA the worst of the worst IPOs for 2014.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.