Why Zogenix Stock Sank Today
Shares of Zogenix (NASDAQ: ZGNX) closed Monday about 8.5% lower, a decline precipitated by the biotech's announcement that it plans to acquire privately held Modis Therapeutics for $250 million.
Investing in biotech stocks, especially clinical-stage biotechs, is fraught with risk for a number of reasons. Zogenix's drop on Monday highlights the downsides of such companies making moves that their shareholders don't like. The sentiment on Wall Street appears skeptical when it comes to the decision to buy Modis, which has only one pipeline candidate -- MT1621, a drug that targets treatment of thymidine kinase 2 deficiency (TK2d), a rare genetic disease.
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Source Fool.com
