Pharmaceuticals company Acrux Limited (ASX: ACR) saw its shares sink another 2.7% today, closing at 90 cents. By comparison, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) was flat for the day at 5,511.7.
As we noted in this article at the end of April, Acrux has warned that it may not receive a US$50 million milestone payment this year. Shares in Acrux have now fallen 45.6% since the announcement was released to the ASX.
The main concern is a US Food and Drug Administration (FDA) investigation into testosterone treatments, such as Acrux's Axiron product. Until the FDA investigation has been completed, Acrux could see further weakness in its shares.
Biotechs stocks can be big winners, or rather large losers, as fellow biotech QRxPharma Ltd (ASX: QRX) found out the week before Acrux made its announcement. Shares in QRxPharma dropped 80% after the FDA knocked back the company for the third time.
Investors may want to consider 'safer' stocks that are already producing regular profits such as this under-the-radar company we have identified.
