Shares of Tempest Therapeutics Inc.
TPST,
fell more than 8% Friday to conclude a dramatic week in which the stock clocked a one-day gain of nearly 4,000%.
The action started on Wednesday, when the oncology company released results for its lead investigational treatment, TPST-1120, in patients with liver cancer and announced a limited-duration stockholder-rights plan, known as a poison pill. The shares retreated the next day, dropping nearly 60%.
After the wild ride, Tempest shares were still up 1,347% for the week and have gained 216% in the year to date, while the S&P 500
SPX
is up 12.7%.
“Unfortunately, Tempest, like many other biotechnology companies, continues to experience a significant and ongoing dislocation in the trading price of its common stock,” Tempest president and CEO Stephen Brady said in a statement Wednesday regarding the stockholder-rights plan. The plan was not adopted in response to a specific takeover threat, the company said, but should reduce the likelihood that any person or group gains control of the company “without paying all stockholders an appropriate control premium.”
For its second quarter, which ended June 30, Tempest reported a net loss of $7.58 million, or 54 cents per share, compared with a loss of $9.17 million, or 79 cents per share, in the year-earlier period. Analysts expect the company to deliver a full-year loss of $2.05 per share, according to FactSet.
Read the full article here