I agree with the statement that the smart investor was buying after this news. I picked more up at $9.18
STANDPOINT DEFENDS OPKO HEALTH, THINKS BAD NEWS WILL REVERSE WITHIN 3 MONTHS
Ronnie Moas of Standpoint Research defends Opko Health Inc. (NASDAQ: OPK), whose shares plunged more than 18 percent after negative study results of its late-stage long-acting human growth hormone product (hGH-CTP) in adults with growth hormone deficiency (GHD). The company said there was no statistical difference between hGH-CTP and placebo on change in trunk fat mass from baseline to 26 weeks. However, after unblinding the study, Opko identified one or more outliers that may have affected the primary outcome. As a result, Opko is undertaking further review of the study population as promptly as possible. Opko has a world-wide collaboration and license agreement with Pfizer Inc. (NYSE: PFE) for the development and commercialization of hGH-CTP. In line with the company statement, Moas says the results were skewed by an outlier in the trial results and there may have been some errors in the way that result was processed. "[T]he bad news from this morning will be reversed in the next 6 to 12 weeks," Moas wrote in a note. As such, Moas sticks with his $18 price target as his positive thesis on the stock mainly centers on potential blockbuster drug (Rayaldee). "In my view the smart money was buying whatever the weak hands were selling.
