Egalet Corporation (NASDAQ: EGLT) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced news from the FDA that proved to be overwhelmingly positive, leading to excitement among investors. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to EGLT ahead.
EGLT Gains On FDA News
As mentioned above, Egalet Corporation is having an overwhelmingly strong start to the trading session after announcing news from the United States Food and Drug Administration. According to the press release, the FDA has granted tentative approval for an expanded label for ARYMO ER tablets. The treatment has been approved for the management of severe pain that is severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate.
ARYMO ER was developed using the EGLT proprietary GuardianTM Technology. This is a physical and chemical barrier approach to abuse deterrence without the use of an opioid antagonist. In a statement, Mark Strobeck, Ph.D., CEO at EGLT, had the following to offer:
“Given that extended-release morphine is the most frequently prescribed ER opioid for individuals living with chronic pain and the majority of those prescriptions are in easy to abuse formulations, we believe that strengthening the ARYMO ER label to include additional abuse-deterrent data is an important improvement for chronic pain patients and their communities… While opioids should be reserved for situations when all other alternative therapies have been tried, when opioids are needed, having abuse-deterrent options is important.”
What We’re Seeing From The Stock
As investors one of the first things that we learn is that the news moves the market. Of course, the news surrounding Egalet Corporation proved to be overwhelmingly positive, causing excitement among investors and sending the stock toward the top. Currently (10:07), EGLT is trading at $1.20 per share after a gain of $0.19 per share or 18.79% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EGLT. In particular, we’re interested in following the sales surrounding ARYMO ER. With the strong label change, sales should increase. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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