Why Did FULC, MVIS, HRTX Stocks Plunge To 52-Week Lows Today?

• Fulcrum shares plunged to a 52-week low of about $2.90 after the company halted development of its lead sickle cell disease drug, pociredir.
• Heron shares fell to a record low of $0.44 after a federal court invalidated patents covering its cancer-supportive care drug CINVANTI.
• MicroVision shares slumped after the company proposed a reverse stock split. 

Fulcrum Therapeutics (FULC), Heron Therapeutics (HRTX) and MicroVision (MVIS) suffered steep losses on Tuesday, with each stock falling to fresh 52-week lows as investors reacted to significant setbacks affecting their core business prospects.

Fulcrum Therapeutics and Heron Therapeutics stocks plunged by over 51% and 45%, respectively, and MicroVision stock slumped by nearly 32%. 

FULC Faces Pipeline Crisis

Fulcrum recorded the largest decline of the group, with shares tumbling to a 52-week low of $2.9, as the company announced on Monday that it would discontinue development of pociredir, its leading treatment candidate for sickle cell disease.

The move came after the U.S. Food and Drug Administration raised concerns about possible cancer risks linked to the treatment. Since the drug was a major part of Fulcrum’s growth plans, analysts lowered their expectations for the company. 

Following the development, Fulcrum faced a wave of analyst downgrades on Tuesday. JPMorgan downgraded the stock by two levels, moving it to ‘Underweight’ from ‘Overweight’.

According to JPMorgan, Fulcrum's ongoing strategic review may not be enough to offset the impact of losing its lead asset. Leerink also adopted a more cautious stance, downgrading FULC stock to ‘Market Perform’ from ‘Outperform’. The firm simultaneously slashed its price target to $4 from $24.

However, on Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

Patent Setback Hits HRTX

Heron also came under heavy pressure with the stock plunging to a record low of $0.44 after a federal court ruling invalidated patents tied to CINVANTI, one of the company’s important cancer-supportive care products.

The ruling could allow generic versions of the drug to enter the market sooner than expected, hurting Heron’s sales. CEO Craig Collard said the company will appeal the decision. 

Following the update, Needham downgraded Heron to ‘Hold’ from ‘Buy’. Retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. 

MVIS Seeks Reverse Stock Split Approval 

MicroVision stock hit a 52-week low of $0.4 after the company asked its shareholders to approve a reverse stock split proposal. The proposal will be presented at the company's virtual annual shareholder meeting scheduled for July 10, where investors will vote on several measures.

If successful, MicroVision's board would gain the ability to combine shares at a ratio ranging from 1-for-5 to 1-for-15. The lidar company said the measure is intended to support compliance with Nasdaq's minimum bid-price requirement. Retail sentiment around the stock remained in ‘bearish’ territory. 

So far this year, MVIS, FULC, and HRTX stocks have plunged between 50% and 72%. 

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