PTC Therapeutics, Inc. PTCT 0.68% is already experiencing some major volatility Tuesday ahead of its upcoming AdCom meeting for Duchenne muscular dystrophy drug candidate Translarna on Thursday. The stock took a 22-percent dive Tuesday morning ahead of the meeting as investors have started to doubt an FDA approval following the release of FDA briefing documents Tuesday morning.
On Monday, Credit Suisse analyst Alethia Young said PTC investors are right to be concerned. According to Young, PTC stock will likely be heading hard in one direction or the other Thursday.
“Based on our review of the data, we remain unsure that the FDA will approve this drug,” Youngwrote. “We think the decision will depend on whether totality of the data would justify the primary endpoint miss in ACT DMD and Phase 2b study.”
Fortunately for PTC bulls, Credit Suisse estimated 72 percent upside for shares in the case of a positive upside compared to only 20-percent downside in the event of a rejection. Following Tuesday’s big sell-off, downside should be even more limited.
The FDA said Tuesday that Translarna efficacy data “are not persuasive,” language that triggered the large market sell-off. The FDA has twice rejected review of Translarna due to lack of convincing data, but PTC opted to push forward with its application.
The FDA’s decision on Translarna will be…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
