The biotechnology sector has mixed prospects. Downside risks are permanent, however, when a top researcher is indicted on fraud charges.
Cassava Sciences (SAVA) plunged from $20 to $12.35 when a grand jury in Maryland indicted its paid consultant and researcher. The jury decided that CUNY School of Medicine Professor Hoau-Yan Wang falsified data on Cassava’s Alzheimer’s drug, simufilam. The NIH provided a grant worth $16 million based on Wang’s wrong data from May 2015 through April 2023.
Wang used improper statistical tests.
In the automotive parts sector, Aptiv (APTV) fell as low as $65.19 on June 26. Aptiv, once known as Delphi, supplies technology for automated driving. Markets are worried that Rivian’s (RIVN) joint venture with Volkswagen (VWAGY) would hurt outsourcing suppliers. The more auto firms build solutions in-house, the less business Aptiv gets.
Investors should watch out for Aptiv's warning about a drop in backlog.
Autoliv (ALV), which supplies safety supplies to the automotive sector, recently peaked at over $126. To take advantage of the share price falling, retired 1.309 million shares as of June 28, 2024. In the first quarter, Autolive posted revenue rising by 5.2% Y/Y to $2.62 billion. It also delivered its balance sheet, reporting a leverage ratio of 1.3 times.
