Cantor Fitzgerald reiterates their Buy rating and $21 price target on Egalet (NASDAQ:EGLT). That stock dropped just over 20% in trading Tuesday. After the bell on Monday, the FDA approved its lead product candidate ARYMO ER but only granted the desire "abuse deterrent" label to the IV version and not the oral or intranasal delivery methods.
This is the latest in a series of head-scratching decisions from the FDA, in my opinion. ARYMO ER's Ad Comm panel had overwhelmingly voted in August for not only approval of the pain management compound but also for the abuse deterrent label. As I noted yesterday in comments and Real Money Pro is reaction to this decision "Egalet down 20% in trading today as although ARYMO ER did get approved, it only got the desired "abuse deterrent" labeling on the IV delivery method despite overwhelming Ad-Comm recommendation for both. Still think drug sees solid growth and added some shares at $6.61 this morning. Latest in several odd decisions by FDA which is as about hard to decipher as FIFA as when it was awarding World Cup locations to the likes of Russia and Qatar."
I do think the decline yesterday to this news was overdone, and the stock will recover over time.
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