Why AVEO Oncology Lost As Much As 19% Yesterday

What Happened

Shares of biopharma AVEO Pharmaceuticals sank 19% Tuesday after investors had more time to digest Monday’s news. That was, the company announced that the drug Fotivda gained marketing approval in the European Union for treating advanced renal cell carcinoma.

Tuesday’s drop seems to be stemming from more complex factors being taken into account, or investors cashing out to lock in their gains.

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