It was not that long ago that the Sesen Bio (NASDAQ:SESN) stock had emerged as one of the notable gainers in the market but the situation has changed quite dramatically over the course of the past week. Despite the recent selloff in the stock, it managed to make a recovery yesterday and rallied by as much as 24%.
However, at the same time it should be noted that over the past week, the Sesen Bio stock is still down by 60%. Earlier on this week on Monday, the stock tanked sharply after it emerged that the company received some discouraging correspondence from the United States Food and Drug Administration.
Before the closure of the markets last week on Friday, Sesen Bio announced that it had got a complete response letter from the FDA in relation to Vicineum, the company’s lead product candidate. In the letter, the regulatory agency informed the company that it could not award an approval for the product while it was in its ‘present form’.
It goes without saying that it was a major setback for Sesen Bio and soon enough the stock experienced a selloff on Monday. It now remains to be seen if the stock can continue to recover today after the rally yesterday.