Advisory committees and clinical data can produce a surge in stock price. Finally approving the drug to the market, however, appears to only result in declines in share price. The decline in stock price is either very rapid if the application is rejected, or it is a slow decline if the FDA approves the drug. Why does this happen? It appears very irrational, since all of the preceding events are linked to a hopeful approval, but when that approval comes, the share price doesn't respond in the expected way.
Submitted May 24, 2016 at 10:20PM by benjaminiscariot http://ift.tt/1OMewmj
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