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Why Provention Bio Stock Crashed Today

TheMotleyFool

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Why Provention Bio Stock Crashed TodayPhoto, wide shot, wide-angle lens, Convenience store, Blue hour, twilight, cool, ISO1200, slow shutter speed, photo by Edward Burtynsky: https://img.midjourneyapi.xyz/temp/35bdb659-cf5a-466a-95a9-428a230a2d2e.png

Shares of Provention Bio (NASDAQ: PRVB) crashed 28.8% as of the market close on Friday. The huge decline came after a U.S. Food and Drug Administration (FDA) advisory committee voted 10-7 in favor of recommending approval of teplizumab in delaying type 1 diabetes.

Investors were clearly expecting a more lopsided vote for teplizumab after the FDA's briefing documents seemed quite positive about Provention's clinical data. Those documents stated that the company's TN-10 clinical study "successfully demonstrated the treatment effect of teplizumab in delaying T1D diagnosis."

Image source: Getty Images.

Source Fool.com

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