What happened
Myovant Sciences (MYOV) stock trailed a booming market last year by falling 5% compared to a 29% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.
That small annual change doesn't describe the roller-coaster ride that shareholders endured, though, as the stock's 2019 returns ranged from an over 40% gain to a near 80% loss.
Image source: Getty Images.
So what
That volatility is par for the course in the biotech stock world, but Myovant's year-end rally was the bigger story of the year. Shares rose by over 100% in mid-November after the company reported encouraging study results for its prostate cancer drug called Hero. The treatment showed more effective results than the control test at helping men who suffer from advanced prostate cancer.
Now what
The next step for this particular Hero treatment will be the submission of a new drug application to the FDA, likely in the second quarter of the year. Investors are excited about the potentially huge sales implications of Myovant's pipeline. However, the stock's losses last year should serve as a warning that shareholders will likely have to endure major price swings even if that optimistic scenario comes to pass.
