Is There Any Hope for Atea Pharmaceuticals Stock?

Part of being a skilled biotech investor is knowing when discretion is the better part of valor. When bad clinical trial results roll in, your favorite holding might get roiled -- and it might not have enough momentum to ever recover. By the same token, if you're willing to bet on biotechs that everyone else has given up on, you just might win the lottery down the line.

And that's exactly the dilemma facing investors in Atea Pharmaceuticals (NASDAQ: AVIR). After the announcement on Oct. 19 that its oral antiviral for COVID-19 failed in clinical trials, its stock dropped about 70%, and the company's future is now uncertain. But with danger comes opportunity, and such a steep drop might well make for a massive bargain if Atea manages to make a turnaround. Is this company worth taking a risk on?

Image source: Getty Images.

Continue reading

Source Fool.com