It's been a terrible day for investors with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) tumbling 1.7% on concerns of a potential Brexit. However, no share on the ASX 200 index has fallen as hard as Mesoblast limited (ASX: MSB).
Following a nearly two-week suspension, Mesoblast's shares reopened for normal trade this morning before collapsing as much as 42%. Ouch.
Shareholders may want to look away now:
The shares collapsed after the regenerative medicine business confirmed that its Israeli partner Teva had quit its partnership, removing a key source of funding for the business and introducing a huge element of doubt for investors.
Mesoblast did try to put a positive spin on the news, although investors saw right through it, pummelling the shares instead.
Mesoblast isn't the first company in the biotech space to have its shares clobbered. Sirtex Medical Limited (ASX: SRX) has been on the receiving end of a huge selloff in the past for disappointing clinical trial results, while others such as Orthocell Limited (ASX: OCC) have also been prone to extreme volatility.
