The latest biotech stocks have been on a roller coaster ride lately.
On Tuesday, Vivera Pharmaceuticals announced it will be selling off a stake in its biopharmaceutical division, as investors and analysts were concerned the company would not achieve its $1.6 billion target in revenue for the year.
The company’s stock is down 12% this year, from a high of $34.20 in January.
Biotech stocks have fallen more than 40% this month, and the S&P 500 is down 13% in 2017.
Viveras CEO, Dan Zeman, has repeatedly said he has no plans to sell his company, but analysts are still holding out hope.
“The Viveran is not looking for a cash dividend, but we have not decided that it is the appropriate time for that,” said Robert Schuman, senior director of investment strategy at Wedbush Securities.
“We think it is unlikely that the company will be able to meet its target for the quarter.
It has seen some very good growth but not enough to offset its $5.4 billion loss last quarter, which was the biggest one-year decline in the S+P 500.”
Biotech has been on the rise for years, but its growth has slowed, and it’s down more than half this year.
Last year, the S &L index of biotechnology companies was up 4.7%, and analysts have forecast a rise of 5% in the coming months.
“Investors are worried about the company’s ability to achieve its goal of raising $1 billion,” said Scott Bostock, a senior director at Sterne Agee in Boston.
“They are concerned that the deal will have a negative impact on revenue and earnings, which is not helpful.”
Shares of Viverans stock have been down 12%, from $32.50 a share in January, after the company said it had been forced to shut down its Biogen Inc. unit after it reported a record-high $2.4 million in profit for the first quarter.
Biogen was founded in 2007 and has been in the news a lot lately because of a drug for a rare genetic disorder, a gene therapy that could potentially be used to treat many people with the condition.
Biogenesis said the company lost $1 million on the deal, but said it would recover the loss in the first half of 2019.
Biologics stock has also been hit hard by a series of high-profile drug deals in recent months, including a deal to acquire the biopharma startup BioNTech, and a deal that closed earlier this month with Sanofi for $8 billion in a deal valued at about $9 billion.
Investors are also concerned about a potential acquisition of the biotechnology company Stem.
Biochem has also seen a lot of bad news lately.
The maker of a line of life-saving drugs said last week it will close a $300 million medical device factory in Canada.
In September, Biogen announced it would cut 1,500 jobs as it seeks to focus on its core business.
In April, the company agreed to buy BioLogic for $12.2 billion, but that deal is still pending regulatory approval.
Biologic is the largest maker of life support drugs in the U.S., and analysts expect it to lose $4.2 million on its business this year as it works to boost production of its generic version of life prolonging drugs.
Venera Pharmaceutical, the world’s largest producer of biologics, said in a statement Tuesday it will reduce its workforce by more than 3,000 positions, but it expects its sales and earnings will increase in the fourth quarter.
In addition to Viveraa, Biologic also has plans to close a plant in the United Kingdom, a plan that could have a dramatic impact on its earnings.
The Veneran is owned by U.K.-based British pharmaceutical company, Vodafone, which has been a strong supporter of biogenics over the years.
The deal will be a huge blow to Veneras stock.
“Vivera is a solid investment with solid fundamentals, and we are delighted to be making a strong investment in Viverus growth,” said Tim Fitch, a spokesman for ViverAva.
“However, we do expect that the Viverna will need to maintain its position as a strong leader in the biologic and life extension industry, given the challenges in the life support and pharmaceutical markets.”
BioMedic also said it will cut more than 2,500 workers, but is expected to report its earnings this week.
BioMedics has struggled to attract new users to its products, and in 2017 it said it was on track to lose nearly $1 trillion in revenue.
The U.KS.-based company’s shares are down about 12% in 2018, after it said in September it would stop selling the V-2 and V-3 bioethanol