Shares of ChemoCentryx (NASDAQ: CCXI) nosedived in May after an advisory committee for the U.s. Food and Drug Administration (FDA) released an underwhelming report on the efficacy of the company's most advanced drug, avacopan, which treats inflammatory and autoimmune diseases and has recently completed phase 3 trials for the treatment of anti-neutrophil cytoplasmic autoantibody (ANCA)-associated vasculitis. While the S&P 500 is up 12% thus far in 2021, the biotech stock has cratered now nearly 80%, with the bulk of those declines coming in just the past couple of months.
But all hope is not lost, and the FDA hasn't shut the door on avacopan just yet. And now that the healthcare stock has all that bearishness priced into it, is it cheap enough that investors should take a chance and invest in the company?
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Source Fool.com