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Why Portola Pharmaceuticals’ Stock Price Is Plummeting Today

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Dec. 11 2018, Updated 2:04 p.m. ET

Stock performance

Today, Portola Pharmaceuticals is trading at $19.32, which is a ~7.52% decline from yesterday’s close of $20.89 on December 10. That day, the stock price closed at $20.89, which is a ~63% fall from its 52-week high of $56.70 on December 21, 2017.

The stock price fell from $48.68 at the close of the market on December 29, 2017, to $20.89 on December 10, 2018, reflecting a ~57% YTD (year-to-date) fall.

Portola Pharmaceuticals hit a 52-week low of $18.18 on November 7.

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Reason for the decline in the stock price

Today, the European Medicines Agency’s Committee for Medicinal Products for Human Use (or CHMP) extended its review period for Portola Pharmaceuticals’ marketing authorization application for Ondexxya (Andexanet alfa). The CHMP also canceled the oral explanation scheduled for December 12.

Now, CHMP is to provide a list of questions to which Portola Pharmaceuticals needs to respond.

The FDA has already approved Andexanet alfa, which is marketed under the name Andexxa.

Financials in a nutshell

Portola Pharmaceuticals’ net revenues over the first nine months of this year amounted to $24.8 million, which represents ~95% year-over-year growth. Portola Pharmaceuticals net revenues from product sales over the first nine months amounted to $10.5 million.

Wall Street analysts anticipate that in the fourth quarter, Portola Pharmaceuticals will generate revenues of $11.9 million, which represents ~21.82% growth.

The company’s net income and diluted EPS over the first nine months of the year amounted to -$261.7 million and -$3.97, respectively, compared to -$194.3 million and -$3.38 in the corresponding periods last year.

Analysts’ recommendations

Of the seven analysts tracking Portola Pharmaceuticals this month, three recommend a “strong buy” while two recommend a “buy.” Two analysts recommend a “hold” for Portola Pharmaceuticals.

Of the 12 analysts tracking Clovis Oncology (CLVS), ~73% recommend “buys.” Among the five analysts tracking Novocure (NVCR), ~80% recommend a “buy.”

On December 11, Portola Pharmaceuticals, Clovis Oncology, and NovoCure (NVCR) had consensus 12-month target prices of $37.0, $25.9, and $47.13, respectively, which represents ~92.36%, ~18.86%, and ~34.22% returns on investment over the next 12 months.

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