Pain Therapeutics, Inc. (NASDAQ: PTIE)
Pain Therapeutics stock has traded relatively flat over the past six months. However, that seems to have changed yesterday. After announcing updates to it’s drug portfolio, investors pushed the stock up more than 50% yesterday. Unfortunately, that momentum simply couldn’t continue as the stock starts to correct today. So today, we’ll talk about why the stock climbed yesterday, what we’re seeing today and why, and what we can expect to see from PTIE moving forward.
Why Pain Therapeutics Stock Climbed Yesterday
Yesterday, Pain Therapeutics announced several portfolio updates. However, the most important update was clearly the fact that the company is working to resubmit the FDA New Drug Application for REMOXY. During the announcement, the company’s CEO explained that they have moved REMOXY away from their previous business partner and come up with data that supports the re-filing of the REMOXY NDA. Here’s what Remi Barbier, the CEO of Pain Therapeutics had to say…
“We’ve substantially completed the transition of REMOXY from our previous corporate partner….We believe the data we’ve seen absolutely supports re-filing the REMOXY NDA. We expect to do so in Q1 2016.
As a result of the announcement, investor excitement took hold; sending the value of PTIE soaring in the market.
What We’re Seeing From PTIE Today
Today, the story is a bit different for PTIE. Unfortunately, the stock is having a rough day in the market. Currently (11:03), Pain Therapeutics is trading at $2.60 per share after a loss of 0.76%. Nonetheless, I’m not concerned. As a matter of fact, I see this as a buying opportunity. The reality is that after steep gains, it’s not uncommon to see declines. Because the market’s movement is nothing more than a series of overreactions, prices that drive too high are forced back down. That’s exactly what we’re seeing today.
What We Can Expect Moving Forward
If you were to ask me what I expect from PTIE a week ago, I would have told you that I have no expectations because the company has been quite for 6 months now…like many other investors, I had no idea what they were doing. However, with the release of the most recent update, I have high hopes for Pain Therapeutics. With plans to re-submit the REMOXY NDA in early 2016 and compelling supporting data around the drug for these plans, I’m expecting to see growth in the short term. If REMOXY is approved this time, I would imagine that growth would become a long term trend.
What Do You Think?
Where do you think PTIE is headed and why? Let us know in the comments below!