RE: February Approvals3 Feb 2019 07:22
Lessons to be taken from the example that is Paratek. Following 2 FDA approvals their stock fell from around $15 to around $5 so don't get lulled into the idea that FDA approval is going to make us all wealthy beyond our wildest dreams. Management must be able to commercialise Iclaprim or else FDA approval will mean nothing. 10-15 years ago the market will mark up the price massively following any FDA approval. Today, the market's much more risk averse and isn't prepared to afford high multiples to any company. Just be careful, that's all I am saying.
'Yes, you make a very pertinent and I would say valuable point that many would be wise to take note of
FDA approval is a valuable step in a pharma company's development but of far more importance is the company's commercialisation strategy. The company must be able to promote and sell the drug to the customer and do it at a good margin
Investors mustn't think that FDA approval is the conduit to untold riches. It's merely a start in the process of turning the company into a commercial operation (generating sales, generating profit and most importantly of all, generating free cashflow)
I believe MTFB will do well but it will take time to break down the monopoly of Vanco. so commercialisation may take some time but I believe the company will in time achieve their aims'
I believe you'll see profit-taking if FDA approval is given. If the company announces some form of commercial agreement along with the FDA approval then that would be give the share price a real, proper footing to make gains.
If you can afford to wait years then great. Most of us can't. Just be realistic
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