Dendreon Corporation (DNDN), Merrimack Pharmaceuticals Inc (MACK), Novavax, Inc. (NVAX): Three Horrendous Health-Care Stocks This Week

Multiple factors
Novavax, Inc. (NASDAQ:NVAX) shares fell 12% for the week. Like Merrimack Pharmaceuticals Inc (NASDAQ:MACK), the company failed to meet analysts’ expectations for earnings. Also like Merrimack, there’s a little more to the story than just financial results.

In the case of Novavax, Inc. (NASDAQ:NVAX), part of the problem stems from questions about contractual revenue coming from its partner, BARDA. Another issue is that the company seems likely to conduct additional phase 1 trials for avian flu vaccine Matrix-M, which it picked up with the acquisition of Isconova.

Of course, reporting a 51% year-over-year decrease in revenue during the second quarter doesn’t look great, either. Getting the BARDA revenue flowing in will help out on that front. Positive clinical results from vaccines in the pipeline could also help shares rebound.

Toughest road ahead
Because they’re still clinical-stage companies, Merrimack Pharmaceuticals Inc (NASDAQ:MACK) and Novavax, Inc. (NASDAQ:NVAX) can expect downturns like they experienced this week. However, they can just as easily surge on good clinical news.

Dendreon Corporation (NASDAQ:DNDN) seems to have the more difficult path. Even though the company has a product that is generating revenue, those sales continue to disappoint. The market is much more forgiving of early stage biotechs without a product on the market than it is for a company that consistently disappoints after its product launches.

While Dendreon Corporation (NASDAQ:DNDN) still has some hope that sales for Provenge can grow, it’s going to be a tough road ahead. I think it has the highest chance for a horrendous week to turn into a horrendous year.

The article 3 Horrendous Health-Care Stocks This Week originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of Dendreon.

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