How Much Can FDA Approval Increase a Drug Company's Stock Value?

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The discussion centers around the recent FDA approval of a novel drug, which is the first of its kind, and the implications for stock prices and potential wealth for employees. The original poster holds 10,000 shares purchased at $3.00 and anticipates a significant price increase to $8-10 following the approval. The conversation touches on the drug's current approval for short-term use after post-operative ileus surgery and its previous complications related to long-term use for opioid bowel dysfunction (OBD). The FDA has lifted a clinical hold on trials for OBD, which is expected to expand the market potential significantly. Participants express excitement about the drug's prospects and speculate on the company's future, including the possibility of a buyout by a larger firm due to its promising pipeline of drugs. Concerns are raised about the drug's oral administration in a population that may require IV solutions, but there is optimism about the overall research and development efforts within the company.
  • #31
sysreset said:
Gravenewworld, I think the problem is that this drug was originally intended for the OBD population, which takes meds orally, and this is an oral drug. When that bombed, it was re-targeted to the post-op ileus population. Problem is, it is still an oral drug, and the target population is "NPO" - meaning, they need an IV solution...

The drug was originally designed for both POI and OBD at the same time. I don't believe that after bowel surgery patients are restricted ONLY to IV treatment. After bowel surgery, doctors are going to try to get their patients on a solid diet as fast as possible. If a patient can eat solid food, they can take the drug. In the clinical trials for POI, patients were given pills. If the patients really needed an IV formulation, then the drug would have never gotten through for PO use.
 
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  • #32
When I saw the OP I thought he must be a high class male prostitute or something. (DC Miestro anyone?)
 
  • #33
binzing said:
When I saw the OP I thought he must be a high class male prostitute or something. (DC Miestro anyone?)

I wish I was, I wish I was... (or is it were?)