Savient Pharmaceutical went from $6 to $9.26 today when the FDA released a memo of the efficacy of its gout remedy. The memo released by the FDA today reviewing two company studies says the drug works but cites safety concerns.
The drug up for review (Puricase) is the company’s only drug in development. The company already markets one drug.
At the meeting on Tuesday, agency officials will ask the panel whether Savient has enough data to determine if the benefits of the drug outweigh its risks.
Analyst Opinions
1. Oppenheimer (Wednesday): Expects a negative view of the drug by the committee because of its safety risks. Believes the price will fall to about $2.00 after the review.
2. Wedbush Morgan (Wednesday): Believes the drug will be approved because there is significant need for the drug and it seems to be effective.
3. Leerink Swan (Friday): Interpreted the FDA comments as favorable on both the safety and efficacy of the drug.
The June options have an implied volatility of 300%. I think that I will buy some straddles Monday.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.