Pain Therapeutics, Inc. (NASDAQ: PTIE) is tanking in the market this morning, and for good reason. The company announced FDA news surrounding an Advisory Committee vote. Unfortunately, the vote did not go in the company’s favor. As you can imagine, the news upset investors, leading to a massive drop in the value of the stock. Today, we’ll talk about:
- The FDA news;
- what we’re seeing from PTIE as a result; and
- what we’ll be watching for ahead.
PTIE Announces FDA Advisory Committee Vote
As mentioned above, Pain Therapeutics is having a rough start in the market today after announcing FDA news. In a press release, DURECT Corporation, the company that licensed commercialization and development rights to PTIE, announced that the Anesthetic and Analgesic Drug Products Advisory Committee and Drug Safety and Risk Management Advisory Committee of the United States Food and Drug Administration has voted with regard to REMOXY® ER (oxycodone extended-release capsules).
The treatment, designed for the management of pain severe enough to require daily, around-the-clock, long-term opiod treatment and for which alternative treatment options are inadequate was voted down by the Advisory Committee in a landslide vote. In fact, the Committee voted 14 to 3 against the approval of the treatment. The PDUFA date for the treatment is August 7, 2018. However, investors in PTIE and DURECT are already pretty positive that approval will not take place, as can be seen by price movement in the values of these stocks.
What We’re Seeing From The Stock
With the news that the FDA’s Advisory Committee has voted against REMOXY® ER, investors are clearly upset, and that can be seen by the dramatic declines that we’re seeing in the value of the stock this morning. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:21), PTIE is trading at $2.12 per share after a loss of $6.41 per share or 75.15% 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 PTIE. In particular, we’re interested in following the story surrounding the company’s planned next moves following the rejection of REMOXY® ER. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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