The Ebola trade is getting a little out of control.
Shares of Tekmira Pharmaceuticals, which have been rallying on hopes for broad use of the company’s Ebola treatment, are taking a beating on Monday.
Near noon, shares of Tekmira were down 16%.
The drop in Tekmira shares comes after research firm Leerink downgraded the stock to Market Perform from Outperform, citing valuation, according to MarketWatch.
Also on Monday, shares of pharmaceutical company Chimerix were up about 5% after the company announced that the FDA approved its drug brincidofovir for potential use in patients with Ebola.
In the last three month, including Monday’s sell off, Tekmira shares are up more than 110%.
And after the CDC last week confirmed the first case of Ebola in the US, shares of Tekmira, as well as a number of other companies investors are hoping could develop a treatment for Ebola, surged, and on Monday the stock was still trading higher than it was ahead of that announcement.
It’s been a wild ride for traders looking for a way to trade around Ebola news, a trend that seems unlikely to reverse. Be careful out there.