Stifel Nicolaus initiated its coverage of AVEO Pharmaceuticals (NAS: AVEO) last week with a sell, which led to a 13% plunge in AVEO's share prices in a single day, citing concerns over the company's drug Tivozanib. Now, the company is rebounding, but it may have a long road ahead. Tivozanib recently beat Onyx's (NAS: ONXX) Nexavar in a phase 3 trial as far as overall survival for renal cell carcinoma, and the company hopes to launch the drug in 2014, if it is approved. But Stifel thinks approval is unlikely, and even if it does get approved, this is already a crowded space, with a lot of competition.
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The article 1 Biotech That Is Bouncing Back originally appeared on Fool.com.David Williamson has no positions in the stocks mentioned above. Max Macaluso has no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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