• The US consumer price index (CPI) rose 3.2% YoY in July, less than the 3.3% predicted by experts surveyed by Dow Jones.
• Five stocks affected by this data are Galera Therapeutics Inc. (NYSE: GRTX), Origin Materials Inc. (NASDAQ: ORGN), Magnite Inc. (NASDAQ: MGNI), Innoviz Technologies Ltd. (NASDAQ: INVZ) and Verona Pharma plc (NASDAQ: VRNA).
• The stock prices of these companies have dropped significantly due to various reasons such as FDA concerns over drug effectiveness and safety, delays in second commercial plant’s phase 1 launch timeline, earnings that beat estimates but still had a negative market response, and more.
United States Consumer Price Index
The United States consumer price index (CPI) rose 3.2% year-over-year in July, lower than the 3.3% predicted by experts surveyed by Dow Jones; with inflation rising 0.2% monthly as expected.
Stock Market Losers
Five stock market losers affected by the CPI data include Galera Therapeutics Inc., Origin Materials Inc., Magnite Inc., Innoviz Technologies Ltd., and Verona Pharma plc; all of which have seen significant drops in share price due to various factors.
Galera Therapeutics Inc.
Galera Therapeutics Inc’s stocks slipped 82.6%, after the U.S Food & Drug Administration declined to approve its drug for treating severe mouth inflammation in patients with advanced head and neck cancer, citing concerns over the drug’s effectiveness and safety profile; asking Galera to provide results from an additional trial for re-submission before it will be approved for use again.
Origin Materials Inc.
Origin Materials experienced a 67.90% drop despite reporting Q2 revenue of $6 million compared to none last year; primarily driven by a delay in its second commercial plant’s phase 1 launch timeline which is now expected to commence between late 2026 – 2027 instead of earlier expectations..
Magnite’s shares fell 33%, despite reporting EPS at $0 contribution ex-TAC at $134 million and CTV contribution ex-TAC at $56 million for Q1 2021; indicating complex market response beyond immediate financial metrics reported by the company itself..
Innoviz Technologies Ltd.
Innoviz Technology witnessed a 33% decline after announcing its second quarter results despite beating analyst expectations with EPS at $0 while revenue hit $152 million; consequently leading to adjusted EBITDA of 37$million with 28$ margin .
Verona Pharma saw a 53% fall on Thursday following their announcement of positive Phase 2a clinical trial results for RPL554 which failed to meet investor expectations due to lacklustre efficacy rates revealed during assessment ; which coupled with pricing competition further dragged down the stock price .