HGEN - Hot Stocks: ATRA HGEN plunge on clinical data; IS skyrockets on merger deal with U; SIGA rallies

The release of the latest read on consumer inflation, which showed the June figure jumping 9.1% from last year, put pressure on stock prices on Wednesday. Investors worried that the Federal Reserve would ratchet up its interest rate hikes even more, raising the chances of an eventual recession.

Elsewhere in the market, the release of clinical study results sent a couple of stocks spiraling. Atara ( ATRA ) and Humanigen ( HGEN ) suffered declines of 55% and 80%, respectively, after they announced the results of separate drug trials.

Meanwhile, M&A news encouraged buying in ironSource ( IS ). Shares expanded their value by nearly half after the company agreed to be acquired by Unity Software ( NYSE: U ).

SIGA Technologies ( SIGA ) represented another notable gainer on the session, posting a double-digit percentage advance after revealing recent orders for a drug that can be used against monkeypox.

Standout Gainer

News of a merger deal prompted a surge in ironSource ( IS ), with shares jumping 47% after Unity Software ( U ) agreed to purchase the firm in a stock transaction valued at $4.4B.

Under the agreement, the company, which produces technology focused on app monetization and distribution, will exchange each of its shares for 0.1089 shares of U. The merger is projected to close during U's Q4.

Bolstered by the deal, IS jumped $1.05 to close at $3.28. However, even with the advance, the stock only reached levels last seen in May. Shares lost nearly 59% of their value in 2022 -- a figure that takes into account Wednesday's surge.

IS came public last year through a SPAC deal backed by technology private equity giant Thoma Bravo. That transaction originally valued the firm at $11B.

The announcement of the merger put pressure on U. Shares dropped 17% to close at $32.82.

Standout Loser

Atara ( ATRA ) suffered a massive selling spree following the release of interim data for a potential treatment for progressive multiple sclerosis. The data sent the stock lower by 55%.

The Phase 2 study, which was known as EMBOLD, tested the company's ATA188 product, a CAR-T immunotherapy, in patients with progressive multiple sclerosis.

"Based on the analysis of the EMBOLD data available at the time of the IA, there was not a sufficient dataset to draw conclusions about the predictive value of six months EDSS improvement for 12 months EDSS improvement," ATRA said in a statement.

ATRA finished the session at $3.89, plummeting $4.77 on the day. Shares also touched an intraday 52-week low of $3.41.

After a slide earlier in the year, the stock had staged a recovery in June and early July. Overall, shares have fallen 77% in 2022.

Notable New High

SIGA Technologies ( SIGA ) added 12% and set a new 52-week high following news that it has received substantial orders for a smallpox treatment, which can also be used for monkeypox and cowpox.

The company reported that it has received orders totaling about $28M for its TPOXX treatment. The drug, which was approved for use against smallpox by the U.S. Food and Drug Administration in 2018, received the green light from European regulators earlier this year for a broader label that included use against monkeypox.

SIGA finished Wednesday's action at $14.54, a gain of $1.53 on the session. During the day, the stock reached as high as $15 -- a new intraday 52-week peak.

Shares have seen a surge of buying interest in the past couple of months. The stock finished below $8 as recently as May.

Notable New Low

Disappointing clinical data for a drug meant to treat COVID-19 sent shares of Humanigen ( HGEN ) into a tailspin. The stock cratered 80% to set a new 52-week low.

The company said its Lenzilumab product failed in a study testing the experimental antibody in patients hospitalized as a result of a COVID infection. The data did not show a statistically significant improvement for the trial's primary endpoint.

Following the data release, HGEN eventually finished Wednesday's trading at just 61 cents. This followed a drop of $2.38 from the previous day's close.

Shares also touched an intraday 52-week low of 58 cents. HGEN had set a 52-week high of $18.65 last August after trading above $25 in 2020. The stock has lost more than 96% of its value in the past 12 months.

For more on the day's biggest winners and losers, head over to Seeking Alpha's On The Move section .

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