Why Shares of Inotek Pharmaceuticals Sank 23% in September
What happened? Biotech stocks were sold off in September, as the iShares Nasdaq Biotechnology ETF (NASDAQ: IBB) fell 9% during the month.
What happened? Shares of Inotek Pharmaceuticals (NASDAQ: ITEK), fell much harder, down 23% in the month.
So What? Inotek did not release any news during September, so the sell-off likely had nothing to do with the company itself. Inotek’s lead drug Trabodenoson, a potential glaucoma treatment, is entering phase 3 clinical trials this quarter. Top-line data is expected in 2016.
Now what? Trabodenoson holds huge potential, with peak sales estimates around $900 million. Inotek completed a $79 million public secondary offering in August, so it appears to be well capitalized. If you liked Inotek before the sell-off, I see no reason to change your opinion now.