Biotechnologist Revance Therapeutics lost more than a third of its market value on Monday after the FDA refused to approve a new facial treatment from the company. That drug should become an alternative to botox.
Investors’ expectations were high, which is why the market is now quite shocked by the regulator’s no. Stocks in New York started the session lower across the board on Monday.
In the first trading minutes, the Revance share dropped just under 40 percent. It is not entirely clear why the FDA has not yet approved the injection against facial wrinkles. Shortcomings were found during inspections at Revance sites, and according to the company, no other objections were mentioned.
Key stock indicators were also lower in early trading in New York. The Dow Jones Industrial Average fell 0.6 percent to 35,086 points. The broad S&P 500 lost 0.4 percent to 4455 points, and technology exchange Nasdaq lost 0.1 percent at 14,876 points.
Concerns about high inflation seem to have returned to investors somewhat, now that there aren’t that many corporate results to digest yet. However, that will change later this week. After major American banks kicked off the new earnings season last week, updates from streaming company Netflix, car manufacturer Tesla, paint producer PPG, software and hardware group IBM and airline American Airlines will follow in the coming days.
Furthermore, Zillow knows how to draw attention to himself. The home-selling platform plunged nearly 10 percent on Wall Street after a report that Zillow’s online service was temporarily shut down due to huge crowds. Entertainment group Disney, in turn, was down about 3 percent. Analysts at Barclays are concerned about a slowdown in growth at the Disney+ streaming service and have therefore lowered their investment advice for the stock.