What does it take to get dropped from the S&P 500? S&P Dow Jones Indices announced late yesterday that it was booting Nektar Therapeutics, which has been testing a treatment for breast cancer, from the S&P 500 index. Nektar was the worst performing stock on the index in the past 12 months, dropping more than 70 percent.
Nektar's earnings fell 112 percent in the second quarter. How do you lose more than 100 percent of your earnings? The company had recorded earnings of $5.33 per share in the year-ago period, thanks to a billion-dollar payment from Bristol-Myers. But that turned into a loss of 63 cents per share for the second quarter of 2019.
More recently, Nektar tested a combination of its drug, NKTR-214, with Bristol-Myers' Opdivo in breast cancer patients. Across 38 patients who could be evaluated, just five responded. As a result, Nektar stock fell 6.6 percent in one day yesterday - and S&P took its action.
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