Aerie Pharmaceuticals Inc (NASDAQ: AERI)
Aerie Pharmaceuticals had a rough day in the market today, struggling to stay anywhere near the green line. And, in after-hours trading, things have gone from bad to worse for the stock as it started spiking down minutes ago. Today, we’ll talk about the decline, why it’s happening, and what we can expect to see from AERI stock ahead.
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What We’re Seeing From AERI
As mentioned above, Aerie Pharmaceuticals wasn’t having the best day in the market to begin with. After struggling throughout the day, the stock closed at $33.28 per share after a loss of $0.84 per share, or 2.46%. However, the real story is what we’re seeing in after hours. Minutes ago, the stock started tumbling. At the moment, AERI is trading at $30.13 per share after a loss of $3.15 per share (9.47%) in after-hours trading thus far.
Why The Stock Is Falling
When the CNA Finance team noticed the spike downward, we started looking for the information that caused the fall. With a quick search, it wasn’t hard to find at all. Unfortunately AERI announced that it has pulled the Rhopressa New Drug Application (NDA). The reason the company gave was relatively simple. They said that third party manufacturing wasn’t ready for the pre-approval inspection.
Along with the news that the NDA had been pulled, Aerie Pharmaceuticals gave an estimate of when it would be ready to resubmit. The company is expecting to resubmit the NDA to the United States Food and Drug Administration in January.
What We Can Expect To See Ahead
In the short run, this is overwhelmingly negative news for AERI. For the company to have to pull the New Drug Application because the ducks weren’t quite lined up right is concerning. At least, that’s the case for the short and mid term.
However, it’s important to remember that the treatment NDA wasn’t pulled for lack of efficacy or safety issues. The problem is a third party. As a result, the chances of approval are largely the same. This simply means that AERI investors are going to have to wait.
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