Is Axovant Sciences Stock a Bad-News Buy?

Shares of the clinical-stage biotech Axovant Sciences (NASDAQ: AXON) nosedived today following the late-stage failure of its experimental Alzheimer's disease drug intepirdine. Prior to the opening bell, Axovant reported that intepirdine failed to meet either of its primary co-endpoints in the study, with the drug performing about as well as placebo in terms of delaying the symptoms associated with this debilitating memory-wasting disease. As of 11:30 a.m. EDT, Axovant's shares are down a whopping 71.2% on over 30 times the average volume.

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Because nearly all Alzheimer's disease drugs have failed in the clinic (roughly 99% to date), this neurodegenerative disorder remains one of the most valuable therapeutic areas to this day. Even as a nondisease modifying treatment, for example, intepiridine was forecast to generate peak sales in excess of $2 billion, if approved.

Source: Fool.com