It has been another disappointing day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is on course to make it three days of declines in a row and is down 0.4% to 5,684 points.
Four shares which have fallen more than most today are listed below. Here’s why they have sunk deep into the red:
The Acrux Limited (ASX: ACR) share price has plunged 28% to 19 cents after the drug development company advised that the licensing agreement with Eli Lilly for its Axiron testosterone drug has been terminated. I would stay clear of Acrux for the time being despite how cheap it may look.
The Catapult Group International Ltd (ASX: CAT) share price is down 8% to $1.47. Today’s decline is likely to be the result of a research note out of Bell Potter this morning. According to the note, Bell Potter has downgraded Catapult to a hold rating due to concerns over its rising operating expenses. Although I do like the company and its products, I’m sitting this one out until it becomes profitable.
The Insurance Australia Group Ltd (ASX: IAG) share price has fallen 4% to $6.18. A good portion of today’s decline is due to the insurance giant’s shares going ex-dividend this morning. Shareholders can look forward to receiving the fully franked 20 cents per share final dividend in their bank accounts on October 9.
The Stemcell United Ltd (ASX: SCU) share price has continued its poor run and is down 13% to 4.5 cents. The medicinal cannabis hopeful has now seen its shares fall by over 35% since the release of its full-year results on August 31. That release revealed a full-year loss of $2.4 million on revenue of just $31,600.