Sometimes a few ill-timed, or overly enthusiastic, words are all it takes to move a stock and even a market.
That seems to be the bottom line of what happened at Sage Therapeutics (NASDAQ:SAGE) on Friday.
US markets are closed for Presidents Day on Monday, but one might have expected shares to hang a little lower had the bourse been open as investors would have fully discounted any MA& chatter by then.
In an interview with Bloomberg published on Thursday, Sage CEO Jeff Jonas was quoted as saying his company was at the top of everyone’s buying list, sending its shares in the real world jumping. But shortly after (and just before the end of after-hours trading), the chief rowed back on the M&A talk.
The remarks came as the company also got a share boost after its major depressive disorder candidate SAGE-217 recently hit its marks in a small, phase 2 test.
Bloomberg got its interview with Jonas about the data, where Jonas chose to elaborate and said Sage was “on top of everyone’s M&A list,’’ and has been “hearing a great deal from a lot of companies.” It all seemed a bit too excited and an uncommon mantra from a biotech CEO, especially after a relatively small trial win, but with much more to be done to confirm its product.
But it was litmus test enough for markets. Shares jumped by 9% in trading hours on the news. But later, the company released a statement trying to temper these comments. Still, the following day shares ended up 3.6% on the day at $64.98.
Story by ProactiveInvestors