Agios Pharma, a biotech company focused on developing and commercializing new drugs for the treatment of Parkinson’s disease and Alzheimer’s, is on the upswing with a $3 billion valuation.
The stock rose 3.6% after reports that the company was in talks to acquire another drugmaker, a move that would give the pharmaceutical company an even bigger market share in the U.S. The stock is trading at a record high of $37.30 a share, up $2.15 since yesterday.
However, there is a negative perception of the drug company from its investors.
The New York Times reported on Wednesday that the stock had fallen to $17.70 a share after investors had received a “negative” email warning that it could suffer another steep drop.
The email, sent by a buyer who bought the stock before the price had fallen, said the buyer was disappointed that the price was not rising.
Agios Pharma has been under a microscope lately for its handling of a patient who had been treated for a fatal form of Parkinson disease, which can lead to paralysis and dementia.
The company has faced criticism for its decision to pay a $50 million settlement to a man who died in 2015 after taking a combination of the two drugs, an agreement that resulted in the death of the patient’s brother.
The FDA and the U-Md.
health system have been investigating the case since.
The investigation into the company’s decision to treat a patient with the drug that was never approved by the FDA was launched in 2015, and the company settled with the U, Md., and Health and Human Services for $15.7 million.
The company has agreed to pay an additional $7 million in damages, the largest penalty ever imposed on a drugmaker.