If anyone needs lithium today, it's Noven (NOVN) investors. Stock in the pharmaceutical company threatened to virtually hang itself earlier, eroding 19% to hit a new annual low of $13.25.
The stock's suicide attempt can be blamed on a failed bipolar treatment - literally - after a Phase III clinical trial showed the company's lithium treatment to be ineffective. The Miami-based company said it would review the trial results and consult with the FDA regarding where to go from here.
Noven shares have been standing on the edge of a cliff, so to speak, since this summer, after the company announced it would acquire JDS Pharmaceuticals LLC for $125 million in cash and the assumption of $10 million in liabilities. The stock has depressed nearly 44% since closing at $23.55 last July.
Until today, NOVN stock had been keeping even with its 10-day and 20-day moving averages, testing support at the 15.50 level and resistance at the 16.50 level since September. As of 1:10 p.m., NOVN stock is still teetering on the edge of a cliff, trading at $13.53, down 18.79%.